Lembo: FY 13 Deficit Now At $140 M

By Rick Green On February 1, 2013 · 6 Comments

The projected spending shortfall for this year has increased to $140 million, according to Kevin Lembo, the state controller.

In a letter to the governor, Lembo notes that “overall employment for 2012 has now turned negative with the loss of 100 payroll jobs. This follows a gain of 7,800 jobs in 2011.”

Lembo says:

“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.”

Lembo said there is still an opportunity for the current budget year to recover, and he agrees with OPM’s note that less than half of projected General Fund revenue for 2013 was collected as of December.

“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.”

6 Responses to Lembo: FY 13 Deficit Now At $140 M

Richard says:

February 1, 2013 at 11:03 am

If you go by the CT DOL labor stats for seasonlly adjusted non-farm jobs CT added 1,000 job since Dan Malloy’s First Full Month in Office (February 2011) while 33,000 State Residents lost their jobs during the same period.

See Charts 1 and 3 at the state DOL website

http://www1.ctdol.state.ct.us/lmi/ctnonfarmemployment.asp

You just can’t convince me that CT is moving in the right direction. Kevin Lembo is a lagging indicator. The info is already out there.
Connecticut is dying too says:

February 1, 2013 at 11:41 am

Connecticut is open for business. That is, if the busines is Government tax and spend and borrow business.

A rhesus monkey can figure out that our state Government, the state’s largest employer, is much too large for the taxpayer base that supports it. We can’t be all things to all people despite the well intentioned but misplaced efforts of liberals.

We can either fess up to our fiscal mess and work to correct it or we can keep electing liberals to make things worse.
- Connecticut is dying too says:
  
  February 1, 2013 at 12:51 pm
  
  PS- turn that frown upside down Kevin.
Ralph says:

February 2, 2013 at 9:08 am

I really don’t think the Governor gets it. Next Wednesday will be a very important day as the Governor unveils his 2-year budget. He’s already come out with increases in spending, including another nearly $2 BILLION Bonding for UCONN. I know we have to invest in education for the long term but why does everything surrounding UCONN have to be a Grand Plan instead of a modest reasonable proposal. UCONN continues to have some of the highest salaries in State Government and have a history of not making the right decisions for the right reasons.

Fortunately, we’re in the last 2 years of Governor Malloy. I’m sure he will be challenged from his own party and several Republicans are already lining up. Unfortunately, in 2 years, he could really set back the state for years to come…
- The Conn-servative says:
  
  February 3, 2013 at 8:46 am
  
  Wholeheartedly agree. I am sick and tired of this and previous General Assemblies pouring money into the UCONN campuses. These facilities have become nothing more than repositories(should be suppositories)for the politically entrenched. We had UCONN 2000 under the Rowland administration. Ok fine. Now this.
  Read the online comments from previous grads about their education there. Many had grad students teaching the class. Why not the overcompensated professors? Where are they? There is no accountability with these so “called” professional educators.
  Many of the state kids who are attending UCONN and other state schools wont even stay in CT because there are no jobs. Oh that’s right. That’s where Jackson Labs, da busway,first five initiative(corporate bribing),etc., comes in to save the day. Do you see the pattern here people? Because of decades of Marxist control in Hartford,the left has pummeled the private sector into the ground due to regulation and taxation. I.e., have it made a non-conducive business environment. So rather than loosen the reigns on the private sector business, they tighten down harder,and now start “investing” taxpayer money to attract and build jobs via the government way. Sheer stupidity.
  The sad part about this is that people like me respond to this in a context that it will happen, even though we DO NOT have the money for it. And even when the current budget is @ 150 million in the hole. Our tax base cannot support this reckless,wanton,spending.
  I wonder if the Courant will publish this blog in Spanish,that way maybe that segment of population will see the light.
  Nah, I don’t think so.
Even a groundhog could predict Connecticut’s continuing fiscal woes | NCAdvertiser.com says:

February 10, 2013 at 7:01 pm

[...] and last year’s huge tax increase, the deficit only continues to keep expanding. See “Lembo: FY 13 Deficit Now At $140M” (CourantBlogs.com/capitol-watch, Feb. [...]