Hole in State Budget Widens as Revenues Plummet
Monday, Nov 9, 2009 | Updated 8:45 AM EDT
New special session may be called to revise state budget.
Falling income tax revenues are seriously threatening the state budget.
This downward trend is a disturbing development for Governor Jodi Rell and the General Assembly because the income tax represents a third of this year's $18.6 billion budget.
"We are all very concerned about it," Rep. Cameron C. Staples (D-New Haven) told the Waterbury Republican-American. Staples is the House chairman of the tax-writing Finance, Revenue and Bonding Committee.
Income taxes this year are trending below budget. Depending on the estimate, the revenue shortfall is the key element of a projected year-end deficit of between $388.5 million and $624 million.
Unemployment is a major factor in the revenue shortfall. According to the latest state figures, 6,600 jobs were lost in September, and there were 76,300 fewer people working — and paying income taxes -- than the previous September.
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