Fasano Statement on Updated OPM Deficit Projection & Revenues for Fiscal Year 2016

July 21, 2016

Hartford – Senate Minority Leader Len Fasano (R- North Haven) released the following statement about the Office of Policy and Management’s updated deficit projections for the 2016 fiscal year which ended last month. The projections show another decline in sales tax revenue and income tax revenue, but an increase in federal grants.

“As disappointing as it was to see three credit rating agency downgrades in six months, more bad news follows for Connecticut with the further decline in income tax and sales tax revenue. These are signs of deep economic trouble and significant problems to come. High paying jobs and people are leaving our state, and the result is the downward revisions we see today.

“Had it not been for the chance increase in federal grants that came in this month, the Office of Policy and Management would not have been able to slightly lower its projected deficit. However, these grants are nothing more than fortunate timing, and represent no long-term improvement by any means. If anything, they show that next year we may see less revenue from federal grants given that more than expected funding has already come in.

“Had Democrats heeded Republican warnings years ago, we wouldn’t be facing these serious problems. Instead their policies created instability and hindered economic growth, which we can clearly see in the updated revenue projections released today. And still as we drift further into the abyss, the majority won’t even consider going into special session to look into potential relief. As we look for solutions, I fear the Democrats will only seek to raise taxes again after November to deal with these growing financial problems.”