Comptroller Says State Deficit is $415 Million

Monday, Dec 3, 2012 | Updated 12:55 PM EDT

State Comptroller Kevin Lembo said the state budget deficit will reach at least $415 million when the fiscal year ends next June.

Lembo released his new estimate on Monday and informed Gov. Dannel Malloy that the deficit exceeds 1 percent of total general fund appropriations, a benchmark requiring a deficit reduction plan within 30 days.

The state Office of Policy and Management has estimated the deficit at $365 million. Lembo said the $50 million difference between the two estimates is due to different projections for higher education spending. This year's state budget totals $20 billion.

Officials attribute much of the deficit to higher Medicaid costs.

Malloy already has announced $170 million in spending cuts. State lawmakers are expected to take up the deficit at a special session later this month.