Fresh on the heels of Gov. Malloy ordering $78 million in budget cuts, the nonpartisan Office of Fiscal Analysis says there’s a looming $144.5 million deficit in the current $20-billion budget.
Here’s the top of the OFA report, which came to the Blogster at about 7:20 p.m.
“We are currently projecting a $144.5 million deficit in the General Fund. This amount reflects an estimated net increase in expenditure requirements of $130.7 million, and a net reduction in revenue of $94.7 million, from original budgeted levels. The original FY 12 budget contained an $80.9 million surplus.
The budget is heavily reliant on budgeted lapses to achieve balance. Of the $777.9 million budgeted, we have been able to identify $651.4 million in lapses. About five months remain in the fiscal year and the remaining $126.5 million may still be achieved through various savings or budgeting mechanisms.
Given the reduction in available funding that occurs due to budgeted lapses (holdbacks), we identify nine agencies that would require $127.3 million in additional expenditure requirements. However, if available funding were to be released, these levels would be reduced to three agencies that would require deficiency funding totaling $4.1 million.
Note: These projections were calculated prior to the release of the Governor’s January 23, 2012 rescissions which total $78.7 million. We are currently conducting an analysis of these rescissions of programmatic impact as well as potential overlap with existing lapses.
These projections do not assume the use of available carry forward funding for purposes other than which was intended at the time the carry-forward was authorized. For example, although carry forward funding in the Reserve for Salary Adjustment account (from FY 11 into FY 12) of $86.2 million may be available after all funding requirements have been met, this funding could be moved to offset other shortfalls.”