Comptroller Projects Larger Surplus;
|Contact: Bob King|
|860-703-3311 or 860-702-3300|
In her monthly letter on state finances, State Comptroller Nancy Wyman is projecting that the state's general fund will end its current fiscal year with a surplus of $184 million.
The projection reflects increases in expected tax revenues due to the improved economy and continuing overall good performance in financial markets. It follows several months in which Wyman predicted a $120 million general-fund surplus.
The governor's budget office has pegged the surplus at only $11.9 million because it plans to make some expenditures that would normally be charged to the year beginning July 1. "I continue to be concerned that your planned use of this year's one-time surplus to advance permanent changes in the state's revenue base will create long-term structural state deficits," Wyman wrote. "Indeed, your own budget projections for fiscal years 2000 through 2002" show deficits, the Comptroller added.
Wyman also faulted the governor's budget for not depositing the surplus for fiscal 1996-97 into the Budget Reserve, or "rainy-day" fund. "Again, in your own budget submission you note that 'the importance of these Budget Reserve Fund deposits cannot be overstated,'" Wyman wrote.
Wyman doesn't include the proposed additional spending from this year's surplus, since legislative approval hasn't been obtained.
General fund spending for the year ending June 30 is expected to be $188.2 million higher than what the legislature appropriated. The largest overspent accounts are projected to be Medicaid ($44.1 million over budget) and foster care for children ($35.5 million higher than budget).
Wyman projects that the income tax receipts will top the budget by $199 million, and that sales tax receipts will be $8.1 million over budget. Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.
For Immediate Release
April 1, 1997
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