STATE OF CONNECTICUT
THE STATE COMPTROLLER
|COMPTROLLER WYMAN PROJECTS 2005 SURPLUS OF $74.3 MILLION|
|Contact: Steve Jensen|
Early estimates for the 2005 fiscal year show the state should realize a year-end budget surplus of $74.3 million, State Comptroller Nancy Wyman said today.
Rising collections of income tax payments related to improved financial markets are fueling the modest surplus, which is based on an overall budget of $14.3 billion.
Those payments from investors are offsetting continuing job losses that have eroded the payroll-withholding portion of the income tax.
"This surplus estimate is based purely on tax payments related to strong investment earnings," Wyman said. "Unfortunately, the state job market continues to be weak and erratic."
After a series of up and down cycles, the state saw a net gain of only about 700 jobs in the 2004 fiscal year, which ended June 30. In addition, payment of taxes paid by corporations based on profits were about $104 million lower than original expectations.
The state housing market continues to be strong, Wyman said, and the real-estate conveyance tax is expected to bring in about $16 million more than was projected in the 2005 budget.
Estimated expenditures by several major state agencies, meanwhile, are exceeding original 2005 budget assumptions by about $56 million. The most significant expenditures are $13.5 million for health care costs in the Department of Social Services; $12 million for staffing in the Department of Corrections; $11.1 million for staffing in the Department of Children and Families, and $10 million in fringe benefit accounts related to higher education.
"Given that it is only one month into the new fiscal year, it is clear that these agencies did not receive adequate resources in the budget," Wyman said "These deficiencies are more about underbudgeting than overspending."
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