With revenue collections from the state's 100 richest taxpayers lower than expected, the legislature's nonpartisan fiscal office now says the projected state deficit for the current fiscal year is $65 million.
These are the latest calculations for collections from wealthy residents that were made in January as part of their quarterly payments. The estimated quarterly collections have become increasingly important as the state is more reliant on the income taxes from billionaires and millionaires to help balance the $20 billion annual state budget.
"While estimated payments are down approximately 9 percent year-over-year, 90 percent of that variance is due to the top 100 taxpayers with the remainder of filers trending flat," the fiscal office said Monday.
In addition, the withholding payments for rank-and-file workers were also lower than expected. That drop prompted the fiscal office to reduce its estimate by $30 million in that category. Budget officials were projecting a growth rate of 2.7 percent for withholding taxes for the fiscal year, but the revised number is now 2.2 percent.
"No worries, " Governor Dannel Malloy told FWIW, "we'll just squeeze the remaining Greenwich fat cats harder - that'll fix it."