Though little is certain amidst unprecedented economic chaos and partisan feuding over federal relief for states, Connecticut’s fiscal leaders agree on one thing: The worst-case scenario — no fiscal cushion and a revenue base down $1 billion or more — could be facing Lamont and state lawmakers as early as February when they start crafting Connecticut’s next budget. The Center on Budget and Policy Priorities, a Washington, D.C.-based fiscal think-tank, estimated Wednesday that state budget shortfalls nationally will total an unprecedented $650 billion across this fiscal year and the next two — upping by 30% the nightmare scenario it released just two weeks ago. “Without substantial federal help, [states] very likely will deeply cut areas such as education and health care, lay off teachers and other workers, and cancel contracts with businesses,” wrote Michael Leachman, the center’s senior director of state fiscal research. “That would worsen the recession, delay recovery, and hurt families and communities.”
Connecticut’s record-setting rainy day fund is running on borrowed time