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 GROWS TO $266.4 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 $266.4 million.

The estimated surplus increased by $53.5 million over the last month. That growth was mainly due to higher-than-expected revenue from the income tax, especially the capital gains portion of the tax related to investors' robust returns from the financial markets. Modest job growth of about 1,700 positions in September also produced higher revenue from the payroll-withholding portion of the tax.

Overall, the income tax is expected to bring in slightly more than $6.5 billion by the end of the fiscal year - or $86.6 over original estimates. The income tax gains were partially offset by drops in revenue from the sales tax and the real estate conveyance tax related to a drop in real estate transactions.

"The slowdown in the housing market not only reduces revenue from the conveyance tax, but has a negative ripple effect on the sales tax," Wyman said.

Projections of the sales tax dropped by nearly $27 million since last month, and the conveyance tax declined by $14.5 million. The tax that corporations pay on their profits rebounded after a sluggish start to the fiscal year and is now expected to exceed expectations by nearly $40 million.

The estimated $266.4 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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