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 PROJECTS $212.9 MILLION SURPLUS FOR 2007
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 $212.9 million.

The largest single revenue gain, $86.6 million, is expected to be generated by the income tax due to continued strength in payroll withholding and estimated payments. The income tax is estimated to bring in a total of about $6.5 billion by the end of the fiscal year on June 30, 2007.

"Connecticut's economy continues to show modest growth, but there are also signs of slowdown in certain sectors," Wyman said.

One of those areas is the tax that corporations pay on their profits, which in fiscal 2006 produced more than $780 million, or about $135 million over expectations. Corporate profits slowed in the second fiscal quarter of 2006, however, growing by 3.2 percent as compared to 12.6 percent in the first quarter.

Early projections for 2007 indicate that the profits tax will bring in a total of about $680 million for the fiscal year. Another factor in the reduction are new tax credits granted to corporations related to job creation and displaced workers.

The housing market continues to show signs of slowing, and job growth for the 2006 fiscal year was a modest 8,500.

The estimated $212.9 million surplus is based on a budget of $16.07 million 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
September 01, 2006

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