Surging tax receipts dramatically shrink hole in next Connecticut budget

State tax revenue projections surged again Tuesday, shrinking the projected shortfall in the upcoming two-year budget — and leaving Connecticut with a nearly $2.1 billion war chest to combat the deficit.

Gov. Dannel P. Malloy’s budget staff and the legislature’s nonpartisan Office of Fiscal Analysis upgraded revenue projections for the upcoming biennium by $880 million.

The latest consensus revenue report also found tax receipts for the current fiscal year should approach $16 billion — $87 million more than anticipated.

Even with Tuesday’s good news, Connecticut’s red ink still exceeds its reserves and any potential additions by a little more than $1.4 billion over the two-year cycle — or about $700 million per year.

Read more: https://www.courant.com/politics/hc-pol-connecticut-budget-revenue-estimates-20181113-story.html