Budget numbers don't add up

Hartford (WTNH) - The Governor's proposed budget compromise ran into a big bump in the road today. It appears the plan has a nearly $400 million hole.

They burned the midnight oil at the State Capitol Complex last night in a department called The Office of Fiscal Analysis (OFA). They are the numbers crunchers and they conclude that the numbers in the Governor's budget proposal, even with another $520 million in spending cuts, don't add up.

The OFA concludes that the Governor's version of the Millionaire's Tax does not raise as much money as she says. That, coupled with her proposed cut in the sales tax and the elimination of the Inheritance Tax, results in a half billion in tax cuts.

The Governor's Budget Office says her proposal raises a little over $1.1 billion over the next two years, but the Office of Fiscal Analysis says it only raises $767 million, leaving a hole of almost $373 million.

"Cutting the sales tax is huge for us," Rell said in a radio interview today and the Democrats agree.

"We're certainly intrigued by that, something that we've advocated for a while," said Rep. Chris Donovan (D-Speaker of the House).

But according to the OFA, the sales tax cut costs the state over $460 million in lost revenue. The elimination of the Inheritance Tax, which is popular with Republicans, costs over $250 million in lost revenue.

The Governor issued a statement saying, "If there is a disagreement on the budget calculations then we will address it and identify a number we can agree upon."