Comptroller Scanlon Projects $224.6 Million Surplus
(HARTFORD, CT) – Comptroller Sean Scanlon today, in his monthly financial and economic update, projected a Fiscal Year 2024 General Fund surplus of $224.6 million and a Special Transportation Fund surplus of $277.0 million, both in general agreement with the Office of Policy and Management’s projections.
The rise in the projected General Fund surplus stems from both upward revisions in revenues and reductions in projected expenditures, including fluctuations in various revenue streams, lower-than-expected income tax refunds, and a decrease in federal grants, as some federal reimbursements are now expected next year.
“Connecticut’s financial discipline and strategic management have kept us in a strong position to end our sixth consecutive fiscal year with a surplus,” said Comptroller Sean Scanlon. “Our commitment to fiscal responsibility continues to yield positive results and, as we begin a new fiscal year, I remain optimistic that Connecticut’s economic and fiscal progress will continue.”
In his letter to Governor Ned Lamont, Scanlon noted that the U.S. economy remains resilient with inflation slowly decreasing. The job market is strong, adding 272,000 jobs in May, with growth in health care, government, and leisure and hospitality sectors. Connecticut saw an increase of 4,700 jobs in May, and its unemployment rate has been declining, now at 4.3 percent.
The Budget Reserve Fund (or Rainy Day Fund) is projected to receive $1.1 billion in volatile revenues from final and estimated income taxes and pass-through entity tax payments. Coupled with the projected General Fund surplus of $224.6 million, the Rainy Day Fund balance is expected to reach nearly $4.7 billion or 21.1 percent of net General Fund appropriations by the end of Fiscal Year 2024.
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