Senator Kissel: Comptroller’s Deficit Estimate is Bad News for Connecticut

Growing deficit estimates show no sign of losing momentum

Senator John A. Kissel (R-Enfield) today expressed concern about the Comptroller’s recent announcement that the expected FY2010 deficit has risen to $624 million.

“Just one week after the disappointing Moody’s report, we have received more disappointing news regarding the state of our budget,” said Sen. Kissel. “Each week the estimates get worse and I am concerned that the end is nowhere in sight. The 2009 legislative session officially came to a close last week, but we still have a long ways to go. Going forward we will need to work very hard to seek additional savings within our state budget.”

In State Comptroller Nancy Wyman’s letter to Governor Rell, she expressed concern that the deficit will continue to rise and that the assumed cost savings by state agencies will not be realized, further adding to the deficit.

“At this point it is predicted that Connecticut will not reach the end of this recession until the third quarter of 2010. But more significantly, economists I have recently listened to believe that nationally we may see what is called a jobless recovery. If that is true here in Connecticut, revenues that have fallen due to reduced income and sales tax receipts will not recover for years to come. Important decisions need to be made soon to shift the course we are currently on.” said Sen. Kissel.

“While the Comptroller’s newest deficit projection is certainly not good news for Connecticut, I am hopeful it will finally compel the majority party to take this financial crisis seriously when we meet in the coming months to work out a deficit mitigation plan,” added Sen. Kissel.