HARTFORD, Conn. (WTNH)– Comptroller Kevin Lembo announced Wednesday that the state is currently on track to end Fiscal Year 2020 with a General Fund deficit of $170 million.
Lembo released his first monthly budget and economic outlook report since the coronavirus pandemic emerged in Connecticut.
He added that the rapidly changing conditions will demand closer monitoring in the coming weeks and months.
“The speed and scale of the pandemic’s economic disruptions are unprecedented for Connecticut. As a result, the full extent of the impact is not yet clear and may take weeks, if not months, to determine. The current year deficit could, and likely will, grow larger. My office will continue to monitor the situation closely and update these projections in future reports,” said Lembo.
Lembo’s deficit projection reflects an updated analysis and estimate on the withholding portion of the income tax, as well as a reduction in sales tax revenue by $30 million.
“My office is already seeing a drop-off in withholding receipts from the large number of layoffs and furloughs resulting from non-essential business closures related to the state’s response to the COVID-19 pandemic. In addition, we are reducing the sales tax estimate by $30 million, again due to coronavirus-related business closures and shelter-at-home directives,” Lembo added.
Below is Lembo’s full economic outlook report: