STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

State Comptroller Nancy Wyman today projected the state will end the 2006 fiscal year with a budget surplus of $306.4 million.

The estimated surplus has risen by about $171 million in the last month, driven mostly by strong collection of income taxes related to taxpayers' investments in financial markets.

Also contributing to the surplus are:

• Increased revenue from the tax paid by oil companies on their profits, due to higher oil prices.
• Rising receipts of the real estate conveyance tax tied to continued strength of the state's housing market.
• Lower-than-expected payouts of state tax refunds.

Additionally, the state continues to see moderately strong growth in retail sales and in collections of the tax paid by corporations on their profits. Job growth, however, remains flat, and volatile energy prices could further dampen economic expansion.

"While the state economy remains relatively healthy, higher energy prices and rising interest rates are a potential threat to growth in the coming months, Wyman said.

Wyman noted that state government is already expecting to spend about $23.5 million more on energy costs this fiscal year than was originally budgeted.

The surplus estimate is based on an annual budget of $15.2 billion.

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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