STATE OF CONNECTICUT
THE STATE COMPTROLLER
WYMAN PROJECTS SURPLUS WILL CLIMB OVER $601 MILLION
Comptroller Says Surplus Being Driven by Capital Gains
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today projected that the state will end the 2001 fiscal Year with a budget surplus of $601.5 million - an increase of about $38.6 million over last month's estimate.
Wyman said that the capital gains portion of the income tax - paid when taxpayers take profits on sales of stocks - will contribute an estimated $600 million to the state's General Fund this fiscal year.
"Capital gains receipts have become an increasingly important revenue source for the state," Wyman said. "But continued movement toward a bear market on Wall Street could dramatically undercut this trend, especially in the next fiscal year."
Total income tax revenues are expected to exceed $4.7 billion this fiscal year.
But with some economic indicators pointing to a revenue slowdown, Wyman has proposed legislation calling for an increase in the amount of surplus funds that can be deposited yearly into the state's emergency Rainy Day Fund. Her plan would deposit a projected additional $213 million of the current surplus into the fund, bringing its balance to about $777 million.
About $41 million of interest created by the Rainy Day Fund would be distributed to every city and town in the state as further protection against local tax hikes.
"This plan could allow both the state and its municipalities to deal with an economic downturn without having to rely solely on raising residents' taxes just when they can least afford it," Wyman said.
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
Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.
For Immediate Release
April 2, 2001
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