The legislature's fiscal office told lawmakers Thursday that the state is facing billions of dollars in budget shortfalls between now and the end of the 2012 fiscal year.
Speaking at a hearing organized by Republican lawmakers, officials from the nonpartisan Office of Fiscal Analysis, estimated the current fiscal year is projected to end with a $292.6 million deficit on June 30.
Gov. M. Jodi Rell's office has predicted a $300 million shortfall.
OFA projects the deficit for fiscal year 2010 at nearly $1 billion; for 2011 at nearly $1.2 billion; and for 2012 at nearly $1.3 billion.
Besides weakening revenues from state taxes, Connecticut is obligated to pay hundreds of millions of dollars to the state teachers retirement fund and cover the cost of various programs that were originally paid for with old surplus money.
House Minority Leader Lawrence J. Cafero Jr., R-Norwalk, said the deficit projections prove lawmakers need to hold a special session, work with Rell to identify cuts and meet with state employee unions to find savings.
"This sitting legislature cannot leave these problems to the next legislature or Connecticut will be faced with either huge tax increases, massive service reductions or both," he said.
Legislative Democrats, who control the General Assembly, have said lawmakers should wait until the state has a better handle on state revenues, especially in light of the recent fluctuations on Wall Street.
Meanwhile, Rell's budget office is working on a list of midterm budget cuts.
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