Under this administration, the Connecticut income tax was raised in 2011 and again in 2015. We were told this was necessary to eliminate the cycle of budget deficit after budget deficit and put the state’s fiscal house in order. Yet, here we are again in 2017 facing more budget deficits. We also have reports from the legislature’s nonpartisan Office of Fiscal Analysis (OFA) that state income tax collections are $267 million below projections.
A recent article in CT Mirror said the OFA report contained a “rare commentary” suggesting that the state has fallen into a self-perpetuating cycle of lower state revenues leading to lower individual spending and lower investing in the state. This leads to even lower state revenues and lower individual spending continuing downward pressure on the state’s economy. The same nonpartisan analysis previously predicted a two-year budget deficit of $3 billion, which could now be almost $4.5 billion.