With a month left in the fiscal year, the red ink has stopped flowing, kind of

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The nonpartisan Office of Fiscal Analysis just issued its monthly update on the budget crevasse.

“We are currently projecting a $249.2 million deficit in the General Fund,” the report says. “This reflects a net improvement in the projected deficit of $35.4 million since last month. Projected expenditures have decreased by $29.4 million and projected revenues have increased by $6.0 million. These figures do not include the setting aside of funds for GAAP, since the law requires this reserve only if available surplus exists….

However, changes contained in PA 12-104 (the FY 13 revised budget) make other funds available to further improve the FY 12 budget balance (by up to $285.5 million). These include:

  1. permitting the use of up to $222.4 million initially set aside to repay debt associated with Economic Recovery Notes issued to pay off any FY 12 deficit (Section 28);
  1. allowing for the FY 11 unexpended carry forward funding in the Reserve for Salary Adjustments account to lapse in FY 12, thereby reducing the FY 12 deficit by $78.1 million (Section 33).
Categories: General

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