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UPDATE: New Haven Deficit Balloons To $66 Million

New Haven Mayor Justin Elicker
Ebong Udoma
New Haven Mayor Justin Elicker

UPDATE: The city of New Haven, Connecticut, will face a larger deficit than first projected, ballooning up to $66 million in the next fiscal year.

That is a $25 million difference from the $41 million budget deficit projected earlier this week.

Mayor Justin Elicker said the jump is based on recommendations and assumptions that city-hired actuaries have provided over the past week to the city’s two public employee pension fund boards.

Elicker said that if the city were to follow those suggestions in full, it would have to contribute up to millions more each year.

The city of New Haven originally projected a $41 million budget deficit in the next fiscal year.

Elicker said the city is cash-strapped from increased pension payments, debt service, health insurance and other fixed costs.

Elicker believes that financial contributions from the state and Yale University might be the only way for the city to emerge from the deficit.

The current fiscal year ends June 30.