HARTFORD, Conn. (WTNH) -- Connecticut's comptroller says the state is on track to end fiscal year 2013 with a $140 million budget deficit.
In a letter to Governor Malloy, Comptroller Kevin Lembo said he agrees with new consensus projections that state revenue has eroded by $33.9 million.
In terms of spending, Lembo said that his projection is $75.6 million above what the Office of Policy and Management recently reported. His higher projection is based on caseload growth at the Department of Social Services, he said.
"The slow growth in the national economy has created increasing demand for state services while at the same time producing lower revenue collections," Lembo said. "Traditionally, even after the national economy improves, there is a lag before the state budget realizes the full benefit of the general economic improvement."
However, Lembo said there is still an opportunity for the current budget year to recover.
"April is a significant month for income tax collections," Lembo said. "Recent federal tax changes combined with favorable market performance could result in a shift of capital gains revenue from future years to the current budget year. This would improve the budget forecast, so we will continue to modify our projections based on actual experience."
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