State of Connecticut

The Comptroller's Report Nancy Wyman - State Comptroller

Connecticut's Financial Position:
From Deficit to Surplus and Back Again

Connecticut state government uses two different accounting methods to assess and report its fiscal condition. One method is referred to as Generally Accepted Accounting Principles (GAAP); the other is known as modified cash accounting. GAAP, as the name implies, is the recognized standard for accurate financial reporting. Corporate financial reports that many readers are familiar with are based on GAAP.

Connecticut state government has not yet adopted GAAP for budget or financial control purposes. Instead the state uses the modified cash system to prepare the budget and to control and report spending and receipts through the year.

The state's fiscal condition under modified cash accounting is dependent on relatively unsystematic timing of payments and posting of receipts. GAAP utilizes more rigid standards on when to post expenditures and record revenue. Therefore, GAAP provides a more consistent and reliable method for reporting and analyzing state financial data. Accordingly, the fiscal data that follows is presented on a GAAP basis.

Because the state budget is presently based on modified cash accounting, the media tends to report the state's position on this cash basis. Therefore, the GAAP numbers that follow may surprise some readers.

Fiscal Year 2001 General Fund Performance - 

Operating Results for One State Fund in a Single Fiscal Year (July 1, 2000 - June 30, 2001)

Bar chart of general fund operating surplus/deficit. Click here for a text description of this chart.

General Fund Revenues:

General fund tax revenue by source, fiscal year 2001.  Click here for a text description of this chart.

General Fund Revenues from fiscal year 1996 through 2001. Click here for a text representation of this table.

General Fund Expenditures:

General Fund Spending by Source, Fiscal Year 2001. Click here for a text representaion of this chart.

Beyond The General Fund - Total Governmental Operations

The state undertakes various activities that do not appear in the General Fund. These activities include transportation and housing programs, grants to municipalities for school construction and other needs, loan programs and other services. When these activities are combined with those of the General Fund, a more complete picture of state governmental operations emerges.

Total Government Operating Results. Click here for a text representaion of this chart.

Cumulative Financial Position of the State -The Balance Sheet

In evaluating the state's fiscal health, there is a tendency to focus exclusively on a single year of state operations. This approach fails to provide a long-term view of the state's financial position. The balance sheet provides this perspective. The balance sheet shows total state assets, liabilities, and fund balances at the close of each fiscal year.

Cumulative General Fund GAAP Deficit. Click here for a text representaion of this chart.

Debt Position

Net Outstanding State Debt. Click here for a text representaion of this chart.

Debt Issuance.Click here for a text representaion of this chart.

Trends in Long-Term Debt. Click here for a text representaion of this table.