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 STATE CLOSES BOOKS WITH $83.4 MILLION SURPLUS
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman today said the state ended the 2008 fiscal year with a final budget surplus of $83.4 million, created mainly by stronger-than-expected income tax revenue that offset higher government spending.

Collection of the income tax grew by 11 percent for the year, and tax revenue overall was up four percent. Government spending, meanwhile, rose by 8.8 percent, mainly due to the use of surplus funds from previous years.

Wyman said the 2008 fiscal year was an erratic one that saw the $17.6 billion state budget go from surplus to deficit and back to surplus.

After a strong start produced an estimated surplus of about $280 million by February, a sharp slowdown in the economy put the budget $67 million in the red by May. That was followed by a late-summer rally in the income tax that created the relatively small surplus as the fiscal year came to a close.

"This year was a true economic roller-coaster ride for Connecticut," Wyman said. "And the final bottom line proves that as goes the income tax, so goes the state budget."

Job growth for the year was a modest 6,000 payroll positions, compared with the nearly 21,000 jobs gained in fiscal 2007. The sales tax increased by a weak 2.5 percent, and existing home sales hit a 10-year low. Overall personal income rose by a strong four percent, however, ranking Connecticut in the top quarter of all states for income growth.

The 8.8 percent increase in state spending was led by:

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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For Immediate Release
September 2, 2008

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