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 BUDGET SURPLUS WILL REACH $925 MILLION
Comptroller Says More Revenue Should Go to Rainy Day Fund
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman today said the estimated state budget surplus has risen to $925 million, a jump of about $85 million since last month.

About $40 million of the increase is attributed to the state paying less in income tax refunds than anticipated. Another $32 million is due to lower-than-expected spending by state agencies as the fiscal year drew to a close on June 30.

Wyman said that $790.3 million of the $925 million surplus has been appropriated by the General Assembly in the recently-approved biennial budget, mainly to create new programs. About $80 million of that amount has been reserved for use in fiscal 2009.

The remaining $134.7 million will be deposited in the state's emergency Rainy Day Fund, bringing its total balance to $1.2 billion.

"I believe that a far greater percentage of the surplus should have been put in the Rainy Day Fund as protection against potential tax increases when the economy inevitably weakens," Wyman said. "Using the great majority of this one-time windfall to fund ongoing programs is a very questionable financial practice."

Wyman noted that the bi-partisan Office of Fiscal Analysis has projected that the state could see budget deficits totaling $1.7 billion from fiscal years 2010 to 2012.

"This year's enormous surplus was created mainly by workers through the payroll tax and investors through the capital gains tax," Wyman said. "Government should be using that surplus money to safeguard the taxpayers' financial future, not on a one-year spending spree."

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 2, 2007

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