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 BUDGET SURPLUS CLIMBS TO $910 MILLION
Rainy Day Fund Will Top $1 Billion for First Time
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today projected the state will end the 2006 fiscal year with a budget surplus of $910 million and an emergency reserve fund of more than $1 billion.

The surplus, based on an annual budget of $15.2 billion, grew by about $104 million over the last month, Wyman said. Strong collections of the income tax, the estate tax and the tax paid by corporations on profits are the main sources of surplus revenue.

Corporate profits were flat in mid-2005, but have grown by an average of 13 percent over the last two fiscal quarters.

"The rebound of corporate profits is certainly good economic news, but unfortunately that growth is not being reflected in job creation," Wyman said.

Connecticut lost 5,300 payroll jobs in May, Wyman said, bringing total employment growth for the year to a weak 4,700 jobs. Over the same time last fiscal year, the state added 12,400 jobs.

About $425 million of the surplus will be deposited in the state's emergency Rainy Day Fund, bringing the fund to more than $1 billion for the first time.

Another $245.6 million of the surplus will be put into the under funded teachers' pension plan and $85.5 million will be used to pay economic-recovery notes issued to deal with a budget deficit in 2002.

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
July 3, 2006

Back to Comptroller's Home Page
Back to Index of Comptroller's Press Releases