State Dips Into Rainy Day Fund to Cover Budget Shortfall

Connecticut's current fiscal year is now expected to end June 30 with a larger-than-expected budget deficit.

Office of Policy and Management Secretary Ben Barnes said Monday the larger figure means the state will spend much of its rainy day fund to offset the shortfall. That withdrawal will leave less than $100 million in the reserve account.

The office said in a letter to State Comptroller Kevin Lembo that the General Fund, the state's main spending account, will end the fiscal year on June 30 with a nearly $316 million deficit. That's a $56.7 million increase from last month's projection.

Barnes says even though the administration is holding down state spending, revenues are around $600 million lower than lawmakers and fiscal analysts predicted at the beginning of the fiscal year.

Copyright AP - Associated Press
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