Fiscal cliff and budget crisis in Conn.

HARTFORD, Conn. (WTNH) -- President Obama has interpreted last week's victory at the polls as validating his call to increase taxes on those making over 250 thousand dollars a year, but Connecticut voters may have unwittingly voted for state tax hikes as well by returning Democratic Majorities to the Connecticut House and Senate.

"I have no intention of raising taxes. I've been saying that for weeks. I have no intention of raising taxes," Gov. Malloy said.

But the sinking feeling at the state capitol is becoming obvious. A sharp plunge in the estimate of what the state is taking in from last year's tax hikes is raising red flags.

The downward plunge from taxes and declining casino receipts is so far in the range of $250M.

"Our State budget is in deficit to the tune of about a quarter of a billion dollars, only four months into a fiscal year. We have problems, serious problems," Rep. Larry Cafero said.

The Republican leader in the State Senate is accusing Democrats of moving the requirement for this budget estimate to after the election in order to hide the bad news.

Malloy calls that nonsense, that the change was done to avoid reporting on just half a month. He says wealthy Connecticut residents seeking to avoid next year's hikes in federal income taxes will end up helping balance his books because they'll end up paying much more in state taxes at the end of the year.

"Before the election, what I said is, if the President is re-elected, I suspected that that would mean an uptick in income coming in December, January and February as people try to front load their Capitol Gains and other gains," Gov. Malloy said.