The announcement today that Connecticut faces more than $2 billion in deficits over the 2013-2015 fiscal years is further evidence that the state’s economic recovery has been even more anemic than anticipated; as a result, revenues remain considerably below initial projections.
Today’s deficits stem from a combination of depressed revenues and elevated costs, and any solution must involve a balanced approach that includes both revenue increases and expenditure cuts. Over the course of Great Recession deficits, Connecticut has relied less heavily on revenues than during the previous two recessions under Governors Rowland, Weicker, and O’Neill.
Prior to additional cuts during the 2012 session, CT Voices released this analysis of official statistics on Connecticut’s previous three deficit-closing packages:
As Connecticut’s leaders take steps to resolve our current budget deficits, they should be mindful of the balanced approach we have taken in the past to close our deficits. Relying on a cuts-only approach risks plunging our economy back into recession and undermining vital supports for families when they need them most.