STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS SURPLUS DROPS TO $152.2 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said a weakening economy has lowered her projected 2008 budget surplus to $152.2 million - a decrease of $74.6 million since last month.
Collections of the income tax dropped by about $30 million over the last month.The state has suffered two consecutive months of job losses, and the state's unemployment rate has climbed to 5 percent - its highest level since May of 2005. That is leading to reduced collections of the payroll-withholding portion of the income tax.
Wyman said the final surplus figure will depend on the amount of final income tax payments that the state collects by April 15. The income tax accounts for about 60 percent of all tax revenue in the General Fund.
"Last fiscal year, more than $1 billion of income tax revenue was posted in April," Wyman said. "It is those collections this year that will determine what this surplus will be when the fiscal year ends in June."
Sales-tax receipts dropped by about $20 million in the last month, Wyman said. Taxes that corporations pay on profits and the tax on real-estate transactions are also in decline.
Wyman's surplus estimate is $22.6 million lower than the Governor's budget office, due to the use of slightly different revenue projections.
In addition to the drop in revenue, deficiencies are projected in the Department of Corrections ($18.5 million) due to increases in the prison population; the Department of Mental Health and Addiction Services ($9.6 million) due to higher personnel costs including overtime, rising utility costs and repairs; and an operating shortfall at the University of Connecticut Health Center ($10.9 million).
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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For Immediate Release
April 1, 2008
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