STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

State Comptroller Nancy Wyman said indications of a moderating economy have led her to project a relatively small surplus of $4.9 million for the fiscal year that ends June 30, 2008.

That estimate is a fraction of the $1.1 billion gross surplus the state recorded in fiscal 2007.

"Although current revenue trends are still positive, there are some indications of an approaching economic slowdown," Wyman said. "Overall, the state economy remains stable, but I do not expect a continuation of the enormous surpluses of the past several years."

In her monthly letter to the Governor on the state's economy, Wyman detailed several "mixed signals" from the state and national economies that led to her conservative projection, including:

• Corporate Profits - Revenue from the tax corporations pay on profits was a major factor in last year's surplus, but has declined considerably this year and is projected to continue doing so for the next 12 months.
  
• Job Growth - After a healthy gain of 1,800 jobs in the first two months of the fiscal year, job creation has fallen behind last year's pace while the unemployment rate has climbed from 4.1 percent to 4.6 percent.
  
• Housing Market - Home prices have shown moderate growth, but sales of existing homes has been weak and permits for new homes dropped 13 percent over a 3-month period ending in late July.
  
• Consumer Spending - Down from last year's pace, but showed modest growth of 5.7 percent in the second quarter of 2007.

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

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