HARTFORD, Conn. – Gov. Dannel P. Malloy’s administration is scrapping plans for a $55 taxpayer refund and a supplemental pension payment as tax revenues come in “hundreds of millions” of dollars less than expected.
Malloy’s Budget Secretary Benjamin Barnes informed the legislature of the change of plans in a letter Monday morning.
“We have not yet established consensus revenue, but will by April 30. Any surplus this year will be deposited into the Rainy Day Fund. We do not anticipate enough revenue to provide a tax refund or to make a supplemental pension payment, as we had hoped in January,” Barnes wrote.
Malloy had proposed using $155 million in state surplus funds to give $55 sales and gas tax refunds to an estimated 2.7 million people. However, last week the Office of Fiscal Analysis cast doubt on the proposal, saying income tax collections were coming in weaker than expected.