Jobs & the Economy, Taxes & Government Spending

Budget Passes

  • May 10, 2012

The General Assembly as agreed on a new $20.5B budget for the upcoming fiscal year.   The budget occurs against the backdrop of the previous fiscal year ending with a $200M deficit, in spite of the largest tax increase in the state’s history. 

The budget deals with this deficit by borrowing against Connecticut’s long-term debt obligations, which exceed $60B.  The budget also includes $143M of net additional spending for the upcoming fiscal year.  Many commentators have expressed concern that this will lead to further deficits going forward.

Meanwhile, the state's actual deficit based on Generally Accepted Accounting Principles (GAAP) is roughly $1.7B, and the budget delays a promised transition to transparent GAAP accounting.