The projected budget deficit is now $371 million. It is certainly not good news, but that is down from the $500 million deficit the state had been facing since last October.
Tax revenue has remained flat but the projected budget deficit is now $371 million, down from the $500 million deficit the state had been facing since last October.
We are about two weeks from the final deficit figure, which will depend on how much income tax revenue is collected around the April 15 tax filing deadline.
The state’s two largest shortfalls come from income tax, which is $222.2 million short of budget projections and sales tax, which is down by $90.6 million.
“The weeks around the filing deadline are always a crucial time for revenues,” Wyman said. “We normally take in about $1 billion during this time, but with the economic downturn. it is very hard to predict what is going to happen this year.”
Wyman is working with a deficit estimate based on a budget of $18.6 billion, and her figure is about $14.5 million higher than the projection by the Governor’s budget office.