HARTFORD, Conn. (AP) -- A new report shows projected revenues for the state of Connecticut will be higher than expected for the current fiscal year. But they're expected to drop by more than $488 million over the next two years.
Gov. Dannel P. Malloy's budget director, Ben Barnes, said the projected decline presents "some real challenges in finalizing a budget."
The consensus revenue forecast, released Tuesday, was reached by Barnes' Office of Policy and Management and the General Assembly's nonpartisan Office of Fiscal Analysis.
OPM now projects the current fiscal year will end June 30 with a $150.1 million surplus, after applying accounting standards.
Barnes said the additional personal income tax revenue is one-time in nature and won't recur. It's mostly from individuals taking capital gains or transferring assets before federal tax laws change.