Final Surplus Figure is $262.6 Million, Wyman Announces
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Connecticut's general fund ended its fiscal year with a surplus of more than $250 million for the second consecutive year, reflecting a state economy gathering momentum, state Comptroller Nancy Wyman announced today.
The fiscal year that ended June 30 showed a net general fund surplus of $262.6 million, according to final figures prepared by Wyman's office. The surplus will be disbursed by retiring the $166.7 million worth of outstanding notes remaining from the state's 1991 debt, and by placing $95.9 million into the state's budget reserve, or "rainy-day fund."
"This is good news for Connecticut taxpayers," Wyman said. "Surpluses and stability mean favorable attention from bond rating houses. And it's further evidence of a continuing recovery in our state." In her letter on the budget, Wyman noted that 28,800 jobs had been added during the fiscal year and that hourly wage growth was up 2.6 percent for the period.
Total income-tax revenues were up 8 percent from the previous year, which Wyman said was especially noteworthy in view of tax cuts that took effect in 1996. Overall revenues were up 5.2 percent for the year. Budgeted spending increased 4 percent. Spending for the year exceeded the budget by $150.3 million.
General-fund revenues exceeded expenditures by $382.1 million for the year, but the surplus was reduced by a net $110.9 million. These funds were effectively carried forward to cover budgetary expenses in the current fiscal year. Such expenses include $51.4 million to cover costs of the state's early retirement incentive, and $40 million to cover debt service payments.
The influx to the rainy-day fund will see it grow to $336.9 million, or 3.6 percent of the current fiscal year's general fund appropriations. This is still $131 million short of the statutory goal of 5 percent of total appropriations, Wyman noted.
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For Immediate Release
September 2, 1997
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