HARTFORD, Conn. (AP) — New figures show the projected surplus for Connecticut’s state budget this year is collapsing.
Gov. Dannel P. Malloy’s budget office is now projecting the current fiscal year’s General Fund will end $43.4 million in surplus, a drop of $461.5 million, according to a letter sent Wednesday from the Office of Policy and Management to the State Comptroller.
Malloy’s proposed $55-per-person tax rebate, to be paid for with surplus funds, was a casualty of the declining revenues. Malloy scrapped the idea, citing a drop in expected revenue from capital gains income. OPM said personal income tax collections are down $389.1 million from original projections.
The Democratic governor’s handling of the budget and economy is expected to be a key issue in this year’s gubernatorial race. Malloy is seeking a second term.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.