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Wednesday, September 24, 2008

Connecticut budget woes coming

Says Mrs. Rell:

Rell's budget office estimated Monday that state's budget deficit for the current fiscal year will be about $300 million, more than double previous estimates. Rell said much of that projected red ink is due to falling state revenues, especially from the income and sales taxes and the state's share of the slot machine take at Connecticut's tribal casinos.

The estimate does not account for any fallout from the recent large fluctuations on Wall Street, she said.

Of course, those "fluctuations" will likely hurt us, given how much of our State's income depends on a relatively few people having big capital gains, mostly in Greenwich, as the Courant recently pointed out:

As the good times rolled in recent years, the state budget became increasingly dependent on Greenwich. Despite having only about 60,000 people, the town contributed nearly $600 million in state income taxes in 2006 — more than three times the income taxes paid by the combined populations of Hartford, Bridgeport, New Haven and Waterbury. With only 1.8 percent of tax filers, Greenwich provides nearly 13 percent of all state income tax, helping to pay for schools in West Hartford and road repairs in Rockville, not to mention every other cost related to running the state.

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