STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN PROJECTS $651.6 MILLION SURPLUS FOR 2006|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today projected the state will end the 2006 fiscal year with a budget surplus of $651.6 million.
Wyman's surplus estimate rose by $24.6 million over the last month, driven by strong collections of the tax on corporate profits, the inheritance and estate tax and gaming revenues. The projection is based on a budget of $15.2 billion for the 2006 fiscal year, which ends June 30.
After declining for much of calendar 2005, corporate profits grew by a sharp 14.4 percent in the year's final quarter, Wyman said. Collection of the profits tax is now expected to exceed expectations by about $125 million for the year.
"The rebound of corporate profits is a positive sign at a time when other major economic indicators such as job growth, the housing market and consumer spending are showing signs of weakness," Wyman said.
The state lost 4,300 payroll jobs in March, the latest data available, bringing total net job growth for the year to a modest 3,700. A drop in consumer spending is also reflected by declining collections of the sales tax.
Wyman said her surplus projection factors in continued flat overall economic growth for the remaining three months of the fiscal year.
Also contributing to the surplus are higher-than-expected energy prices, which have produced higher receipts of the taxes paid by oil and utility companies.
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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