Connecticut's budget deficit has increased by almost a quarter billion dollars in the last month. Governor Jodi Rell says her budget office now estimates the deficit at $365.3 million dollars -- and she warns that both state and federal economist warn it will get worse before it gets better.
The legislature meets in special session Monday to discuss ways to deal with the shortfall.
Last month's deficit estimate was about $108 million, but since then, slower consumer spending has cut more than $115 million from the sales tax and lower energy prices have cut $100 million in tax revenue from oil companies. Investment income is down about $20 million and the state expects to have to pay an additional $25 million in income tax refunds.
The governor has ordered two rounds of budget cuts at many state agencies, and told agency hy heads and commissioners to slash all non-essential spending and most out-of-state travel. She says when the legislature meets next week to discuss cuts -- in her words, "no program, no constituency and no project can be held sacred. "
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