STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN PROJECTS $627 MILLION
SURPLUS FOR 2006
Comptroller Warns of Weakening State Economy
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today projected the state will end the 2006 fiscal year with a budget surplus of $627 million.
Wyman's surplus estimate rose by $9.4 million over the last month, due mainly to modest increases in collections of the income tax and the tax on corporate profits. The projection is based on an annual budget of $15.2 billion for the 2006 fiscal year, which ends June 30.
Other contributors to the surplus are higher-than-expected energy prices creating higher oil company and utility company tax receipts; rising collections of the real estate conveyance tax due to strength in the housing market in the early months of this fiscal year, and better than expected inheritance tax receipts.
Wyman noted, however that signs of weakness are beginning to show in the housing market, the strength of corporate profits and the sales tax, which is a reflection of consumer spending.
"While there are still positive signs in some areas of the economy, it appears that clouds are beginning to form on the horizon," Wyman said. "That is why my surplus estimate is a conservative one that factors in an expected downturn as we close out the fiscal year."
Wyman said that anticipated economic decline makes it vital that a major portion of the surplus be dedicated to the state's emergency Rainy Day Fund, which can be used to protect against tax hikes during a slowdown.
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 - firstname.lastname@example.org
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