State to End 2019 With A Surplus
HARTFORD, CT — The state is on track to end the 2019 fiscal year with a $770.9 million surplus, according to state Comptroller Kevin Lembo.
However, Lembo warns about $540.9 million of that is accounted for to cover funding for a new capital reserve fund for the Teachers’ Retirement System and the tax settlement with the hospitals. Both were part of the 2020 and 2021 budget agreement signed into law last week.
In his monthly letter to Gov. Ned Lamont, Lembo said he agrees with the Office of Policy and Management that revenue categories are performing above what was projected in the April consensus forecast. Sales tax revenue is $39.9 million ahead of projections, the corporation tax is $25 million ahead of projections, the inheritance and estate tax by $16.5 million, and public service corporations tax by $17.5 million.
“These over-performing revenue categories are positive signs – however, in order to help protect against future economic downturns, Connecticut must maintain financial discipline and continue building the Budget Reserve Fund balance to the statutory target of 15 percent,” Lembo said.
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