New CT budget is $2.1 B in the red, but all may not be gloom and doom

From CT Mirror.

The coronavirus continues to hit Connecticut’s economy hard, and — at least on paper — state finances are feeling the pain as well.

But things might not be as dire as they seem.

Though Gov. Ned Lamont’s administration projects a whopping $2.1 billion deficit for the new fiscal year, which began July 1, that is based partly on pessimistic stock market projections from April that — at least so far — haven’t come to pass.

And while Comptroller Kevin P. Lembo certified the administration’s deficit forecast Tuesday, the state’s chief fiscal watchdog also cautioned against making any knee-jerk budget adjustments.

“It’s very early on in the process, so we’ll have to watch that closely and adjust as things move forward,” Lembo said during an afternoon press conference, urging Lamont to stay in close consultation with legislative leaders. The budget “should not be on auto-pilot. It needs maintenance.”

Some legislators want to crack open the state’s record-setting $3 billion rainy day fund, which Lamont has been loathe to do. Others fear the governor will pursue emergency spending cuts amidst the pandemic — which also hasn’t happened yet.

See the complete article from CT Mirror online.