STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS SURPLUS CLIMBS TO $532 MILLION, EXPECTS MORE GROWTH|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said the projected state budget surplus has grown to $532.2 million and is expected to climb significantly higher over the next few months.
Wyman said the increasing surplus is attributed to strong revenues from several major tax categories, especially the income tax paid by investors and the tax that corporations pay on their profits. Moderate job growth and signs of a rebound in the retail sales tax are also positive indicators.
"Revenues are looking very healthy right now and I would not be surprised if the surplus is around $700 million by the time the fiscal year ends June 30," Wyman said.
The Comptroller is urging the Governor and the General Assembly to allocate $100 million of this year's budget surplus to a new trust fund that will help address an estimated $21 billion liability in the health insurance account for retired state employees. Wyman is also urging the adoption of legislation requiring 10 percent of any future budget surpluses be transferred to the interest-bearing trust fund.
"Implementing this simple and common-sense solution will reduce pressure on the state's bond rating and significantly lessen the need for tax increases to fund this liability moving forward," Wyman said.
The estimated $516.5 million surplus is based on a budget of $16.07 billion for fiscal 2007. The state ended the 2006 fiscal year with a $940.5 million surplus.
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 - email@example.com
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