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 GROWS TO $560 MILLION
Corporate Profits Increase, Offset Drop in Sales Tax, Housing Market
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 $560 million - a $17.8 million hike since last month.

Higher-than-expected revenue from the tax that corporations pay on their profits is the main reason for the increase. The tax is expected to bring in more than $800 million by the end of the fiscal year on June 30, or about $110 million more than original estimates.

Those gains offset a drop in revenue from the sales tax and the real estate conveyance tax tied to the slowing housing market.

"A depressed housing market has a direct affect on retail sales because people are not buying goods to furnish their new homes," Wyman said.

The sales tax is estimated to bring in $42.4 million less than original estimates, and the real estate conveyance tax about $27.6 million less.

Overall, the state economy continues to see modest growth. Connecticut added about 1,200 jobs in December. That brought the total gain for the fiscal year so far to about 7,600 positions, or about 3,000 more than were created in the same period last year.

Wyman's overall surplus projection is $52.1 million higher than that of the Governor's budget office. It is based on an annual state budget of $16.07 billion.

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
March 1, 2007

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