COMPTROLLER LEMBO SAYS FISCAL YEAR 2014 ON PATH TO $4.4-MILLION
SURPLUS; HIGHLIGHTS AREAS WORTH WATCHING |
Tuesday, September 3, 2013 | Contact: Tara Downes (860.702.3308 | Tara Downes@ct.gov)
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Comptroller Kevin Lembo today announced that, while the fiscal year is still
young, the state is currently on track for a $4.4 million surplus on the basis
of Generally Accepted Accounting Principles (GAAP).
In a letter to Gov. Dannel P. Malloy, Lembo said he shares concerns identified by the Office of Policy and Management (OPM) regarding several items that could impact the current budget estimates.
Those areas include the historically volatile nature of Medicaid spending and the unknown impact of the Affordable Care Act on Medicaid reimbursements and enrollment in 2014, Lembo said.
OPM is also in the process of collecting agency data to determine what impact the federal shutdown might have on the state economy and budget.
"To this list of concerns, I would add a collection trend that is showing sales tax revenues falling short of projections," Lembo wrote. "At this point in time, the trend is not sufficiently established to result in a revenue revision. However, I will be closely monitoring this and other revenue sources and will make adjustments to my projections as required.
"The state economy continues to post moderate monthly growth," Lembo said.
Economic data from federal and state Departments of Labor and other sources
• The state lost 6,000 payroll jobs in August. This is the first monthly
employment loss following five consecutive months of gains. Connecticut was one
of 17 states that saw a decline in August employment.
• This recovery, like the past two recoveries, has seen Connecticut's rate of
job growth decelerate.
• According to the Connecticut Department of Labor, the state has recovered
51.3 percent or 62,200 of the 121,200 jobs lost during the recession. Private
sector job gains have outperformed the public sector gains. The recovery is now
in its 42nd month.
WAGE AND SALARY INCOME
• Personal income in Connecticut grew at a rate of 0.9 percent between the
first and second quarters of 2013. This ranked Connecticut 30th nationally in
income growth. On an annualized basis, the state's income gain is running well
above the 1.3-percent growth that was posted for 2012.
• According to the Department of Labor, average hourly earnings at $27.71,
not seasonally adjusted, were down a slight two cents, or just -0.07 percent
from the August 2012 hourly pay estimate. The resulting average private sector
weekly pay was estimated at $931.06, down $8.99, or -1.0 percent over the year.
The year-to-year change in the Consumer Price Index for All Urban Consumers
(CPI-U, U.S. City Average) in August 2013 was 1.5 percent.
• The Census Bureau reported that U.S. new home sales increased 12.6 percent
from August of last year. Sales in the Northeast were up 27.6 percent for the
BUSINESS AND ECONOMIC GROWTH
Read the Comptroller's Full Letter |
View PDF for Economic Indicators|