January 2, 2025
The Honorable Ned Lamont
Governor of the State of Connecticut
State Capitol
Hartford, Connecticut
Dear Governor Lamont,
I write to provide you with financial statements for the General Fund and the Transportation Fund through November 30, 2024. The Office of the State Comptroller (OSC) is projecting the General Fund will end Fiscal Year 2025 with a $178.8 million surplus and the Special Transportation Fund will end Fiscal Year 2025 with a $158.1 million surplus. OSC is in general agreement with the Office of Policy and Management’s (OPM’s) General Fund and Special Transportation Fund projections. The following analysis of the financial statements furnished by OPM is provided pursuant to Connecticut General Statutes (CGS) Section 3-115.
The General Fund (GF) surplus for FY 2025 is projected at $178.8 million, which is $119.0 million lower than budgeted. The entire decrease from last month is due to upward revisions to net expenditure projections of $11.5 million, comprised of $19.7 million of additional shortfalls partially offset by $8.2 million of additional lapses. The largest change was an increase of $20.0 million to the Medicaid account shortfall. See page two for more information.
The Special Transportation Fund (STF) is projected to close FY 2025 with a $158.1 million operating surplus, an increase of $90.0 million from the budgeted amount. The surplus projection increased by $9.1 million this month due to expenditure reductions of $12.0 million (largely related to lower debt service) more than offsetting a -$2.9 million revision to Federal Grant revenue. The STF closing balance is projected to be $567.9 million (24.9% of net appropriations) as of June 30, 2025. See page two for more information.
The Budget Reserve Fund (BRF), also known as the “Rainy Day Fund,” is currently at its statutory cap of 18% of current year net GF appropriations. It is projected to temporarily reach 24.9% of FY 2025 net GF appropriations following the projected transfer of $1,403.5 million for the volatility cap transfer and $178.8 million from the GF surplus. Additional transfers to the retirement funds during the closeout of FY 2025 are therefore expected.
If you have any questions on this report, please do not hesitate to contact me.
Sincerely,
Sean Scanlon
State Comptroller