Despite a major deficit-mitigation effort last month, state officials still have a little more red ink to deal with this fiscal year, Comptroller Kevin P. Lembo reported Wednesday.

Kevin Lembo

The state’s chief fiscal watchdog’s latest projection of a $40 million deficit — which represents less than one-quarter of 1 percent of the state’s operating budget — wasn’t a big surprise. That’s because Lembo had projected a slightly larger shortfall than either Gov. Dannel P. Malloy’s administration or nonpartisan legislative analysts had last month when the governor and legislature wiped $365 million in red ink off the books.

But Lembo also warned state government’s fiscal fortunes could hinge on crucial new revenue projections due two weeks from now…read more