Comptroller Kevin Lembo this afternoon said that even with the latest cuts ordered last month by Gov. Dannel P. Malloy, the state’s lingering budget deficit remains at $89.4-million. Ten days ago the Office of Policy and Management announced $31.5 million in reductions on top of November’s $54.7 million in cuts.
“Based on current spending trends and with historical experience of realized lapses over the past five fiscal years, I believe that the OPM savings target is attainable,” Lembo said. “I am, therefore, in general agreement with OPM’s deficit projection for the General Fund.” He said a balanced budget in the fiscal year running through June 30 is attainable. “Over the past five fiscal years, annual realized lapses have averaged $511.2 million,” he said. “Although (OPM’s) current lapse target is a significant challenge, it is not inconsistent with past performance in difficult budget circumstances.”
The state is losing much of its projected revenue because of sharp declines in gasoline prices.
“Meanwhile, the Department of Social Services (DSS) is continuing to work through retroactive settlement payments to hospitals – and has adopted a new payment system that will eventually eliminate the need for such settlements,” Lembo’s office said. “Also, while enrollment on the state General Fund portion of the Medicaid program advanced at a stronger rate than expected during the early months of the fiscal year, enrollment has since leveled off over the past several months.”