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 REVENUE GROWTH CREATES SMALL BUDGET SURPLUS
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman today said a sharp rise in receipts of the income and sales taxes has produced a modest projected state budget surplus of $300,000 - an improvement of $45 million since last month.

"It is very encouraging to see positive revenue growth, but there are other economic indicators that unfortunately are not so optimistic," Wyman said.

While the payroll withholding portion of the income tax has grown by nearly 8 percent in the first three months of the fiscal year, for example, it has not been matched by a corresponding growth in jobs. The state lost more than 100,000 jobs between March 2008 and December 2009, but has regained a net of only 2,500 of those positions since the start of the calendar year.

"This slow rate of job recovery is simply not strong enough to absorb all of the available workers in Connecticut," Wyman said, noting the state's 9.1 unemployment rate.

The increase in tax revenues also is being offset by projected state agency deficiencies totaling $233.4 million. The largest single deficiency - $172.5 million - is within the Department of Social Services.

On the positive side, existing home sales in Connecticut were up more than 12 percent over the same time last year. New housing permits are also showing signs of resurgence. Nationally, retail sales for September were up a strong 7.3 percent from last year. The stock market has also posted gains over the past year and corporate profits have performed well.

The $300,000 surplus is based on a $19.2 billion budget for the fiscal year that ends June 30. Wyman also noted that the budget was partly balanced by borrowing nearly $650 million.

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
November 1, 2010

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