CT’s projected budget surplus soars to $700M

CAFCA | June 21, 2019 |

 The state’s general fund is projected to end the current fiscal year with an operating surplus of more than $700 million, up $129.1 million from May’s estimate, according to the state’s budget chief. Office of Policy and Management Secretary Melissa McCaw wrote Thursday in a letter to Comptroller Kevin Lembo that OPM had revised its sales-and-use tax revenue estimates upward by $39.9 million and corporation tax revenues by $25 million, as collections exceed their targets in both line items.

Connecticut’s pass-through entity tax revenue was also revised upward by $110 million and “rents, fines, and escheats” estimates are up $10 million due to higher-than-expected collections.

Meantime, personal income tax revenue estimates were revised downward by $100 million, which McCaw said was due to underperforming collections.

OPM estimates that the state will deposit nearly $896 million into its budget reserve fund for the fiscal year that ends June 30, which would increase the account balance to more than $2.2 billion.

The projections could still change when OPM issues its final estimates for fiscal year 2019 in July.

“While the foregoing information represents the best estimate that can be made at this time, accounting adjustments made as part of the upcoming year-end closing process will affect the results reported here,” she wrote.

The state’s estimated budget surplus has grown significantly since the beginning of 2019. 

Connecticut’s surplus was projected at $461.9 million in late January and $242.4 million just weeks earlier.