Sept 21 Connecticut has sprung a $27 million
hole in its current $20.5 billion budget, partly because sales
tax revenue and payments from Native American gaming casinos
were weaker than expected, a state official said in a letter.
"The revenue forecast that underlies the fiscal year 2013
budget assumes a modestly accelerating national expansion which
has yet to materialize," Benjamin Barnes, secretary of the
Office of Policy and Management, said in a letter to the state
The monthly letter from Barnes, dated Sept. 20, covers the
first three months of the budget that started July 1. A state
spokesman was not immediately available to comment.
Connecticut's jobless rate rose to 9 percent in August from
8.5 percent in July, according to the U.S. Department of Labor.
Only 12 states and Puerto Rico have rates that are 9 percent or
Connecticut will get an extra $50 million in September from
the federal government for Medicaid, Barnes said.
But the rising number of low-income adults enrolling in
Medicaid and increased demand for medical services will cost the
state an extra $100 million.
A number of casinos are still struggling to fully recover
from the recession, and Connecticut's two main Native American
casinos - Mohegan Sun and Foxwoods - will soon face competition
from Massachusetts, which last month began accepting
applications for three new licenses..