Connecticut ends FY 2012 with $143 mln deficit - comptroller

Sept 4 Tue Sep 4, 2012 1:47pm EDT

Related Topics

Sept 4 (Reuters) - Connecticut ended fiscal 2012 with a nearly $143 million deficit, as extra spending on social services helped push expenditures up 5.2 percent over the previous budget, the state comptroller said on Tue sday.

General fund revenue climbed only 4.8 percent, which was $227 million below the original target, Comptroller Kevin Lembo said in a statement.

The final deficit figure for the year ended June 30 was slightly bigger than the forecast $120 million budget hole that was issued on Aug. 1. The 2012 deficit is being closed with general fund reserves.

In fiscal 2013, spending is expected to rise 2.6 percent, with revenue increasing 3.1 percent.

"This rate of (spending) increase is historically low and will require careful monitoring and swift remedial action if outlays trend higher," Lembo said.

Although many U.S. states have seen revenues revive since the last recession, the National Conference of State Legislatures in August said year-end balances as a percentage of general fund spending, at just 0.1 percent to 4.9 percent, are projected in nearly a quarter of the states.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video