Comptroller Sean Scanlon Projects $113.2 Million Surplus
(HARTFORD, CT) – Comptroller Sean Scanlon today, in his monthly financial and economic update, projected a Fiscal Year 2025 General Fund surplus of $113.2 million and a Special Transportation Fund surplus of $126.4 million, both in general agreement with the Office of Policy and Management’s projections.
“Connecticut’s fiscal health continues to be in prime condition as we prepare to make another historic pension payment and embark on the next budgeting season,” said Comptroller Scanlon. “While the stock market remains strong, our office is closely watching the Federal Reserve to see what impact an anticipated – and overdue – rate cut will have on our overall economic picture, and we remain optimistic, especially in light of our full Rainy Day Fund, which will ensure we can weather any downturn.”
In his letter to Governor Ned Lamont, Comptroller Scanlon also noted that while the surplus is lower than projected, revenue projections are $148.6 million higher than budgeted, partially offsetting projected higher-than-expected expenditures. In contrast, the Special Transportation Fund’s projected surplus is $58.3 million higher than budgeted.
The Office of the State Comptroller is currently projecting that, upon final closeout of fiscal year 2024, $940.5 million will be used to pay down state employees’ and teachers’ retirement pension debts, since the Budget Reserve Fund (also known as the Rainy Day Fund) will be at its statutory limit. This would mark more than $8.5 billion in payments to these pension obligations in the past five years.
While national unemployment rose slightly to 4.3%, Connecticut’s unemployment rate dropped for a fourth consecutive month to 3.6% in July, and private sector payroll employment hit a new all-time high. Additionally, consumer prices rose 2.9% for the year through July, marking the first such reading below 3% since 2021. Given the progress on inflation and cooling of the labor market, the Federal Reserve is widely expected to begin cutting interest rates in September.
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