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 SURPLUS NEARLY DOUBLES TO $561.5 MILLION
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman today projected the state will end the 2007 fiscal year with a budget surplus of $516.5 million.

The estimated surplus increased by $220.1 million over the last month. That growth was due to a projected revenue increase of $214.8 million and expected spending reduction of $5.3 million.

Wyman's estimate is $30 million higher than the most recent one made by the Governor's budget office; the Office of Fiscal Policy and Management.

"My projection is more optimistic about the revenue we expect from the tax that corporations pay on their profits," Wyman said. "Corporate profits have seen a significant rebound in recent months that I expect to continue as the fiscal year progresses."

The single largest reason for the expanding surplus continues to be higher-than-expected revenue from the income tax - especially the capital gains portion related to investors' returns from the financial markets. Job growth of about 2,700 positions in October also produced higher revenue from the payroll-withholding portion of the tax.

The sales tax and the housing market, however, remain sluggish. The sales tax is expected to produce nearly $27 million less than original estimates. The real-estate conveyance tax, a barometer of housing activity, is projected to bring in $14.5 million less.

The estimated $516.5 million surplus is based on a budget of $16.07 billion for fiscal 2007. The state ended the 2006 fiscal year with a $940.5 million surplus.

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
November 01, 2006

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