Comptroller Sean Scanlon Projects $136.3 Million Surplus
Economic Update takes a look back at lessons learned in 2025
(HARTFORD, CT) – Comptroller Sean Scanlon today, in his monthly financial and economic update, projected a Fiscal Year (FY) 2026 General Fund surplus of $136.3 million and a Special Transportation Fund surplus of $50.3 million, both in general agreement with the Office of Policy and Management’s projections.
“As we begin a new calendar year, Connecticut has a surplus and is in its strongest fiscal position in decades,” said Comptroller Scanlon. “After years of hard work and discipline, we are better situated than most states to both protect ourselves from a recession and lower costs for families and businesses in our state. We must take advantage of that reality in 2026 and make sure those struggling with affordability feel the state’s fiscal progress equal to the pressure on their wallets.”
This month’s Economic Update examines some of the lessons learned in 2025, including the challenges facing higher education, factors contributing to high electricity costs, and more. Looking ahead to 2026, the Office of the State Comptroller will continue to track these trends while also monitoring the path of interest rates, the strength of consumer spending amid a weakening labor market, and the impacts of slower immigration and an aging workforce on job growth, among other things.
With the closeout of FY 2025 finalized, $1.5 billion was transferred from the Budget Reserve Fund, also known as the “Rainy Day Fund,” to reduce the State’s pension liabilities. Separate from the Budget Reserve Fund, the legislature, at the request of Governor Lamont, enacted a $500 million reserve fund for responding to federal actions or inactions affecting the State’s budget. In December, $167.9 million was transferred to the General Fund to cover various costs, leaving a balance of $332.1 million.
Comptroller Scanlon noted that the Early Childhood Education Endowment is currently projected to receive $136.3 million at the closeout of FY 2026.
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