Malloy’s budget director, Ben Barnes, says the current fiscal year deficit has shrunk by $215.5 million, to a projected $107.2 million shortfall, since May.
In a letter sent Tuesday to State Comptroller Kevin Lembo, Barnes says the change is due to transferring revenue from various funds to cover the red ink, as well as improvements in state tax collections. The largest increase occurred in the corporation tax.
The $107.2 million shortfall for the fiscal year ending June 30 will be covered by the state’s budget reserve account, leaving a balance of $128.4 million.
The Democratic governor and state lawmakers are meeting Wednesday to discuss how to fix a projected $5 billion deficit in the new two-year budget.