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


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).