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State Ends Fiscal Year with $143.6 Million Deficit

Revenues in Connecticut fell well short of what was expected.

Connecticut ended the fiscal year with a $143.6 million deficit, which was eliminated using the state’s reserves.

Revenues failed to meet expectations despite growing by 4.8 percent in the 2011-12 fiscal year. Revenues totaled $854.2 million, short of the target by $227 million.

According to the office of Comptroller Kevin Lembo, expenditures in 2013 are budgeted to rise by 2.6 percent, while revenues are expected to grow at a 3.1 percent rate. 

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

According to Reuters, spending rose 5.2 percent in the 2011-12 budget compared to the previous year. 

Lembo’s office said the largest spending increase was in the Department of Social Services by $409.4 million, or 7.6 percent, as Medicaid caseloads rose 52 percent. 

More spending increases came from contributions to teachers’ retirement, up $210.2 million debt service payments and funding for state employees’ retirement.

Still, salary and wage costs declined by more than 8 percent. 

The deficit was r. In July, Lembo expected a $192 million deficit. 

Liz Mao September 06, 2012 at 12:21 PM
More mumbo-jumbo from Hartford...the state does not have any "reserves!" According to Barron's, Connecticut is the second worst- managed state in the country, right after Illinois. The state's financial condition is abysmal.

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