Connecticut, which currently has about $2.5 billion in its rainy day fund, expects to have $1.8 billion-to-$1.9 billion left by July 1 after closing another deficit this fiscal year. But Lamont and the General Assembly have an even bigger task facing them next spring when they must craft a new, two-year budget to cover the 2021-22 and 2022-23 fiscal years. And Thursday’s forecast now projects that biennium can expect $4 billion less in revenue than originally anticipated. Though Connecticut never has closed a gap that large in the past without a major state tax hike, governors and lawmakers also have turned to unionized employees for savings.
Lamont to cancel tax relief, seek labor savings to shrink $2B deficit in July