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Comptroller Sean Scanlon Projects $166.7 Million Surplus And Low Unemployment Impact On Economy

February 1, 2024
Sean Scanlon
Sean Scanlon
CT State Comptroller

(HARTFORD, CT) – Comptroller Sean Scanlon today, in his monthly financial and economic update, projected a Fiscal Year 2024 General Fund surplus of $166.7 million and a Special Transportation Fund surplus of $241.0 million, both in general agreement with the Office of Policy and Management’s (OPM’s) projections.

This represents a slight decrease in surplus forecasts, due to downward revisions in areas such as sales and use tax and federal grant revenue. Much of these reductions were offset, however, by an upward revision in the withholding component of the personal income tax. As unemployment continues to remain low, this revenue source continues to exceed previous projections. In total, these factors resulted in a downward revision of $11.3 million.

“Connecticut’s economy showed continued resiliency through the growth of 23,000 jobs over the last year,” said Scanlon. “The average hourly wage has risen month-over-month, and we can expect to see this trend continue next month with the minimum wage increase that began on January 1. These are all encouraging signs for Connecticut’s working families and our state’s fiscal health.”

Recently, national news has highlighted the growth of the U.S. economy, in large part due to consumer spending. While the Federal Reserve has elected not to cut interest rates just yet, economists have praised what is thought to be a “soft landing,” as inflation continues to cool and as an economic recession appears less likely than it did a year ago.

Comptroller Scanlon currently projects that, at the end of the fiscal year, $478.5 million in volatility revenue transfers will be made to the Budget Reserve Fund in addition to the budget surplus. This will put the Budget Reserve Fund, also known as the Rainy Day Fund, above its statutory limit and allow for additional payments towards the state’s pension debt.

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