Comptroller Natalie Braswell today, in her latest monthly financial and economic update, said that the state remains on track to end Fiscal Year 2023 with a General Fund surplus of $1 billion, while warning that aspects of the national and global economies show signs of slowing.
In a letter to Gov. Ned Lamont, Braswell said the state’s fiscal position remains strong with a fully funded Budget Reserve Fund (or “Rainy Day Fund”) and projected that approximately $2.87 billion would be available to continue reducing the state’s unfunded pension liabilities.
“The national economy continues to show signs of slowing down – but Connecticut’s fiscal discipline over the last several years has given us the stability and strength necessary to weather economic uncertainties,” said Braswell. “Connecticut may not be able to control global uncertainties, but we can be smart about preparing for them.”
A law originally proposed by former Comptroller Kevin Lembo in 2015 requires the final surplus amount, plus excess revenue in certain volatile categories, be deposited into the state’s Budget Reserve Fund (commonly known as the “Rainy Day Fund”). The table below shows the state of the Budget Reserve Fund, and projected transfers to pay down pension debt at an accelerated rate.
“Connecticut’s improving financial position is critical as the U.S. economy continues to send mixed messages,” Braswell said, pointing to continued elevated inflation and concerns about job growth.
View PDF for full economic indicators.
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