STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS STATE WILL END YEAR WITH $1.2 MILLION SURPLUS|
|For Immediate Release||Contact: Steve Jensen|
|January 3, 2011||860-702-3308/3301|
State Comptroller Nancy Wyman today projected the state will end the 2011 fiscal year with a small budget surplus of $1.2 million, as the state continues to see a slowly improving economy.
"The income tax, sales tax and inheritance tax are significantly outperforming initial budget projections," Wyman said, noting that income tax receipts are up by a healthy 7 percent over last year. "Unfortunately, those gains are being offset by continued high unemployment, a weak housing market and overspending by some state agencies."
The state added 2,500 payroll jobs in November, bringing the total job growth for calendar 2010 to 10,600. But the state's unemployment rate remains historically high at 9 percent. Connecticut's housing market continues to struggle, with existing home sales dropping sharply in the third quarter of 2010.
Increases in receipts of the sales tax is mirroring national trends, which saw advance retail sales for November were up a solid 7.7 percent.
Also tempering the revenue gains are projected state agency deficiencies of $253 million. The largest single deficiency totals $190 million within the Department of Social Services, largely attributable to higher program caseloads and the inability to achieve budgeted savings targets.
In addition, the state will rely on almost $650 million in borrowing to correct for structural budget imbalances.
"The reality is that this small surplus would not even exist if the state reported under Generally Accepted Accounting Principles," Wyman said, referring to the accounting system that is expected to be enacted by the incoming administration. "I look forward to implementing GAAP and finally being able to report the state's true fiscal health to the people of Connecticut."
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 - firstname.lastname@example.org
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