The most recent letter from the Office of Policy Management secretary to the state comptroller provides a slightly less bleak budget outlook for Connecticut.
In his monthly letter, budget secretary Benjamin Barnes wrote that the state's operating deficit is projected to be less than January's estimate of $120 million.
The reasoning for the reduction has to do with a settlement dating back to the 2008 recession that will see Connecticut take in approximately $36 million in one-time revenues. The settlement has to do with securities ratings.
The other reason for the downward deficit figure pertains to the second round of rescissions that Gov. Dannel Malloy ordered in January. He ordered the first round in November.
The governor announced his two-year budget proposal earlier this week, which included $590 million in cuts to state services in the 2016 fiscal year.
The nonpartisan Office of Fiscal Analysis projects a deficit of more than $1 billion in each of the next two fiscal years.
Barnes said the state anticipates increased tax receipts in April, which would help toward closing the current year budget gap.
