Sen. Kane on Channel 8: “We’re tackling all different types of bills rather than the elephant in the room, this looming deficit.” [WTNH.com]

Article as it appeared on WTNH.com

Malloy makes budget predictions
Updated: Monday, 23 Apr 2012, 4:03 PM EDT
Published : Monday, 23 Apr 2012, 4:03 PM EDT

Mark Davis
HARTFORD, Conn. (WTNH) — Despite numbers that seem to indicate his budget is in trouble, Governor Malloy continues to predict that the state will end the budget year in the black. However, republicans are already predicting the General Assembly will need a Special Session to deal with the growing deficit.

The Governor correctly notes that the red ink is very small compared to the $3.5 billion deficit he faced when he came to office, but it’s still a hole and not one he seems willing to acknowledge.

While Malloy rushes in the final days of the General Assembly session to get the deals he wants on a massive Education Reform plan and decades old liquor pricing law reform, it appears his budget plan is falling deeper and deeper into red ink.

“We’re tackling all different types of bills rather than the one that’s most important,” said Senator Rob Kane, “that elephant in the room, which is this looming deficit.”

Despite enacting nearly across the board tax increases last year, the state is approaching the end of the budget year with a deficit of at least $140 million and apparently growing because receipts from the new, higher state income tax are not producing the results Malloy thought.

“What we’re seeing is the Personal Income Tax is not calculated in the deficit and is coming in eight percent lower than what they expected,” Kane said.

However, the Governor indicated Monday that because unemployment continues to go down, income tax receipts should improve, and pretty much is acting as though there is no problem.

“We got well over 60 days to figure out how to resolve that,” Malloy said, “obviously I’ve told people not to spend money…to the greatest extent possible.”

There is no appetite at the State Capitol for any more increases in taxes, as this is an election year for every state lawmaker. Malloy agrees, even though one estimate says an even larger deficit is looming next year.