An improvement in revenue is shrinking Connecticut's projected deficit and improving the outlook for the end of fiscal 2013, according to state Comptroller Kevin Lembo.
In a letter to Gov. Dannel Malloy, Lembo said he projects a $91.3 million deficit for the end of the fiscal year — a $40 million improvement over his projection last month — the deficit could be eliminated entirely.
Lembo cited a $30 million gain in the inheritance tax as the primary driver. Unanticipated increases in Medicaid caseload numbers throughout the year have produced most of the spending in excess of original budget projections, he said.
"It should be noted that both the actual expenditure growth trend through February, and the (Office of Policy and Management) spending target, represent historically low rates of general fund spending growth," Lembo said. "This low growth in spending has also helped to mitigate the fiscal year 2013 deficit.