Comptroller Sean Scanlon Projects $322.8 Million Surplus
Economic Update highlights consequential 2026 legislation
(HARTFORD, CT) – Comptroller Sean Scanlon today, in his monthly financial and economic update, projected a Fiscal Year 2026 General Fund surplus of $322.8 million and a Special Transportation Fund surplus of $20.3 million, both in general agreement with the Office of Policy and Management’s projections.
This month’s Update highlights economically consequential legislation from the recently concluded state session, including Public Act 26-15 An Act Concerning Online Safety, the hospital tax deal, assistance for post-secondary students impacted by federal changes, and more. The monthly report also highlights events the Office of the State Comptroller is watching for fiscal impacts, such as the new Federal Reserve Chair Kevin Warsh, the ongoing conflict in Iran, and federal housing legislation.
“For the eighth year in a row, Connecticut is on track to end the fiscal year on June 30th with a surplus—something that would’ve seemed impossible a decade ago,” said Comptroller Scanlon. “We’re continuing to see the benefits of responsible fiscal management. And unlike most states, Connecticut’s improved fiscal health has allowed us to both tackle obstacles the federal government has thrown our way while also paying down debt, making historic investments in our kids, and working to bring down costs across the board.”
In his letter to Governor Ned Lamont, Comptroller Scanlon noted that the increase in the state budget projections was largely due to the passage of the 2026 budget act. The increases in revenues in the General Fund as a result of the budget were somewhat offset by increases in expenditures from last month totaling $354.9 million, including new appropriations of $283.0 million for educational and municipal aid. The net change to the 2026 budget results in an expected surplus of $322.8 million in the General Fund, which will be transferred into the Early Childhood Education Endowment fund.
The Budget Reserve Fund (BRF), also known as the “Rainy Day Fund,” is currently at its legal cap of $4.33 billion, or 18% of net General Fund appropriations for FY 2026. The BRF is projected to receive an additional $1.28 billion from the FY 2026 volatility cap deposit, temporarily bringing the balance to $5.61 billion, or 22.6% of FY 2027 General Fund appropriations. Because this exceeds the 18% cap, Comptroller Scanlon expects additional transfers to be made to reduce pension debt.
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