Despite an improving economy, Connecticut could be facing budget deficits of more than $1 billion over the next three years.
Gov. Dannel Malloy’s budget office and the General Assembly’s non-partisan Office of Fiscal Analysis told lawmakers this on Friday.
“Employment is increasing, our income is rising, retail sales are growing, and the economy is on the rebound,” Karen Buffkin, of the governor’s budget office, explained to members of the Appropriations Committee.
“However, adopting a balanced budget for this next year is going to be a significant challenge, ” she said.
That’s because of the rising cost of Medicaid, debt service, state employee and retiree health care and other obligations, Buffkin said.
GOP leaders in the General Assembly called for a special session next month to deal with the deficit. But the Governor’s office says that’s not necessary. It released a statement saying this year's budget, which is about $100 million in deficit, will be balanced. The statement said the governor has made spending cuts and imposed hiring slowdowns.
