HARTFORD — State Comptroller Nancy Wyman reported that Connecticut’s economy is generating increased tax revenues, but the failure of some state agencies to meet savings targets has created a $45.3 million budget deficit.
Driven by improved receipts of the state’s two largest tax categories — income and sales taxes — overall estimated revenues have exceeded expectations by $198 million since the 2011 fiscal year began July 1, according to Wyman. Those receipts are mainly due to the state gaining about 8,000 jobs since January.
“The positive news is that we are finally seeing some solid revenue growth that is directly tied to the recent upswing in jobs,” Wyman said. “But those gains are unfortunately being negated by the inability of some agencies to achieve the savings targets that were built into the budget.”
Most notably, Wyman said, the Department of Social Services is currently posting a deficiency of $140 million. Statewide agency deficiencies total $171.2 million.
Those deficiencies are mitigating the gains in revenues and other positive economic signs, including a resurgence in the state housing market, where new home sales jumped 30 percent in the fiscal quarter that ended last June.
The $45.3 million deficit is based on a $19.2 billion budget for the fiscal year that ends June 30, 2011.
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