Rell's budget deficit may be $7.4mil

HARTFORD, Conn. (AP) - Connecticut Gov. M. Jodi Rell's budget office is predicting that the state budget deficit for the next two fiscal years will be nearly $7.4 billion, about one billion higher than first projected.

The growing shortfall is being blamed on declines in personal income tax, sales tax and casino revenue collections.

The state receives a portion of the slot machine revenues at the state's two tribal casinos.

In February, Rell proposed a two-year, $38.4 billion budget that assumed a $6 billion deficit for the two fiscal years beginning July 1.

But Democrats in the Legislature criticized Rell for using that figure when the Office of Fiscal Analysis had predicted an $8.6 billion deficit.

Rell and the Democrats, in recent days, have accused one another of foot-dragging on the budget.