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WYMAN PROJECTS $463.6 MILLION SURPLUS, SAYS ECONOMY SLOWING BUT STILL STRONG
Contact: Steve Jensen
860-702-3306/3301

State Comptroller Nancy Wyman today projected that the state will end the fiscal year with a budget surplus of $463.6 million, despite signs that the state's economy is growing at a more moderate rate than last year's extraordinary performance.

Growth in payroll employment, hourly manufacturing wages and personal income are all slightly behind the exceptional growth recorded last year, Wyman said, but still continue to produce robust revenues for the state.

"Although slightly off from last year's pace, job and wage growth - combined with continued strength in the financial markets - have propelled tax receipts well above budget expectations," Wyman said. "Overall growth may be slower, but our economy remains very healthy."

The income tax continues to be the main reason for the surplus. Wyman projected that the income tax will bring in about $3.8 billion this fiscal year, or about $430 million more than original estimates.

Other tax categories that are anticipated to generate higher-than-budgeted revenues are the corporation tax and the sales tax, Wyman said. In addition, the state is expected to pay out about $72.6 million less in state tax refunds than was originally projected.

Spending by state government, meanwhile, is expected to exceed original budget appropriations by about $122.4 million, putting the state over the statutory spending cap for budget growth for the second straight year. Most of the additional spending is the result of an $80 million appropriation for a new sports stadium in Hartford.

Wyman's projection of a $463.6 million surplus is about $5 million higher than her monthly estimate made in March. It is also about $42 million higher than the year-end surplus projection made recently by the state Office of Policy and Management.

The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

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For Immediate Release
April 1, 1999

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