Gov. Ned Lamont's budget chief estimated a $2.3 billion deficit for the fiscal year of 2021 for Connecticut because of the coronavirus.

Gov. Lamont discussed the state's budget during a press briefing Friday, and says his administration projects a $900 million deficit by end of 2020's fiscal year, and a $2.3 billion deficit for the fiscal year of 2021.

He says the federal government will be sending $370 million in next fiscal year, which starts July 1.

Gov. Lamont says the goal is to avoid tax increases and "stretch out" the state’s rainy day fund.

However, his team noted that the state will have to "streamline" things, including discussions with "our friends in labor"

Gov. Lamont says he will not bring up tolls again, but predicts the Special Transportation Fund will run out by July 1, 2021 because of "drastic cut" in gas tax revenues.

 

He also acknowledged the federal government may help, but he's "planning for the worst."

Gov. Lamont's budget chief projected a revenue shortfall of $2.1 billion for the budget year ending June 30, mainly due to big drops in sales and income tax withholdings during the coronaviorus pandemic.

Gov. Lamont's budget chief estimates $2.3 billion deficit for fiscal year 2021, but says much of that depends on how fast consumers spend money again and go back to work.

Gov. Lamont also announced federally approved funding for a mental health program for those impacted by the COVID-19 pandemic.

The Federal Emergency Management Agency approved the program, which will be tacked onto the State of Connecticut’s Major Disaster Declaration.

The approval includes funding for crisis counseling under the individual assistance category, which will help support mental health initiatives designed to benefit individuals affected by the COVID-19 pandemic.

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