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 DECLINING CORPORATE PROFITS
LEADING TO SMALLER SURPLUS
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman said today that a sharp decline in receipts of the tax that corporations pay on profits has reduced the estimated 2008 budget surplus to $226.8 million.

Collection of the corporation tax is expected to bring in about $30 million less than original estimates, Wyman said. Another major reason for the lower surplus estimate is that the state is expected to pay out about $20 million more in tax refunds that was originally budgeted.

Wyman said both of those factors are the product of a slowing economy in Connecticut and nationally.

"Connecticut is expected to slightly outperform the national economy," Wyman said, "but most projections show the state having either a modest slowdown or flat economic growth over the next year."

Wage growth nationally has been just over 2%, while in Connecticut wages increased by 4.7% in fiscal 2007 and have remained in that range in recent months. That has led to relatively strong receipts of the income tax, which have increased by slightly less than 8% in fiscal 2008.

Job growth in the state has been stagnant since the fiscal year began July 1. Existing home sales in Connecticut have dropped by 20% over last year.

The Comptroller's overall surplus estimate dropped by $54.4 million since last month, and is $33 million lower than that of the Governor's budget office.

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 3, 2008

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