Seal of the  State of Connecticut, Office of the State Comptroller

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER

OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775

MARK OJAKIAN
DEPUTY COMPTROLLER
WYMAN PROJECTS BUDGET SURPLUS WILL CLIMB TO $663.9 MILLION
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today projected that the state will end the 2001 fiscal year with a budget surplus of $663.9 million - an increase of about $62 million from last month's estimate.

Wyman attributed the hike to a $25 million jump in income tax revenues; growth in the inheritance and estate tax by about $20 million and that the state paid about $22 million less in income tax refunds than was anticipated. Those gains were somewhat offset by a $30 million reduction in projected revenues from the corporation tax.

"The drop in the corporation tax is a result of the slowing economy squeezing profits from businesses," Wyman said. "But these trends have a history of reversing very quickly, and there are indications that corporations will see a stronger second half of the year."

Wyman noted that the surplus would be even larger if not for an estimated $130.2 million in overspending by state agencies. Nearly 75 percent of the excess spending is for health care costs, she said, including Medicaid, the ConnPACE prescription drug program and mental health expenses.

The spending over budget targets is primarily the result of medical inflation, double-digit cost increases in prescription drugs, interim nursing home rate increases, costs associated with special-needs education grant payments and increases in staffing at the state Department of Children and Families.

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

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
June 1, 2001

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