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 SAYS STATE WILL END FISCAL YEAR WITH $202.2 MILLION SURPLUS
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today said that the projected year-end budget surplus has risen significantly to $202.2 million.

The jump of about $150 million in the past month is due mainly to a sharp increase in collections of the capital gains portion of the income tax, associated with improved financial market activity. Overall, income tax payments for the year are expected to exceed original estimates by about ten percent, or nearly $435 million, Wyman said.

"The equity markets performed very well in the last fiscal year," Wyman said. "And when those markets go up, so do capital gains payments to the state."

Another result of the higher capital gains collections is that the state will pay out about $104 million less in income tax refunds than was anticipated.

The recent surge in income tax collections came despite the loss of about 4,200 payroll jobs statewide between May and June. That drop cut in half the job gains that had been made in the spring.

All of the expected $202.2 million surplus will, by law, be deposited into the state's emergency Rainy Day Fund, which was drained of its $590 million balance to deal with a deficit two years ago.

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
August 2, 2004

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