How Can Connecticut Still Be Facing a General Fund Deficit in SFY 06?

Connecticut’s FY 05 General Fund budget is projected to have a surplus of more than $300 million, yet its FY 06 General Fund budget is expected to have a current services deficit between $800 million and $1.3 billion, despite the improving economy. Many ask, “How can this be?” This report reviews why Connecticut’s budget remains in trouble. It focuses on state revenues, the predominant factor in Connecticut’s structural deficit.