Comptroller Sean Scanlon Projects $108.7 Million Surplus
(HARTFORD, CT) – Comptroller Sean Scanlon today, in his monthly financial and economic update, projected a Fiscal Year 2024 General Fund surplus of $108.7 million and a Special Transportation Fund surplus of $229.5 million, both in general agreement with the Office of Policy and Management’s projections.
New data available on revenues and expenditures resulted in a $59.2 million decrease from last month’s estimate. The largest downward revisions were seen in the sales and use tax, as well as the inheritance and estate tax, both of which have seen lower than anticipated collections. However, the Comptroller noted that April’s post-Tax Day consensus revenue projection will provide a clearer and more-definitive picture of where collections will end for FY 24.
“The U.S. economy continues to gently cool,” said Comptroller Scanlon. “Although jobs continue to grow and inflation remains relatively flat—both important signs for our state and national economies—higher interest rates and prices of consumer goods have overshadowed those positive economic indicators for many.”
In his letter to Governor Ned Lamont, Scanlon noted that both the United States and Connecticut showed job growth in February, adding 275,000 and 900 jobs, respectively. While the Federal Reserve opted not to cut interest rates this past month, economists are anticipating them to later this year.
Despite these positive economic indicators, low consumer confidence in our economy lends itself to a “vibecession,” a term coined by economist Kyla Scanlon in 2022 to describe when the sentiment of the general public is much more negative than the story indicators tell on paper.
“We cannot lose sight of the fact that for the sixth consecutive year, our state budget is operating with a surplus,” Comptroller Scanlon added. “This will empower us to continue making historic payments towards our pension debt, freeing up money in next year’s budget and saving us money down the road.”
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