State Comptroller Nancy Wyman today projected that the state will end the fiscal year with a budget surplus of $458.9 million.

Wyman's estimate is about $42 million higher than last month's, mainly due to projections that the state will pay significantly less in annual income tax refunds than was originally anticipated.

The lower-than-expected refund payments also make up the bulk of the difference between the Comptroller's $458.9 million surplus estimate and the recent prediction by the state Office of Policy and Management of a $402.4 million year-end surplus.

Wyman said the driving force behind the surplus continues to be the state income tax, which is predicted to bring in about $3.8 billion in revenue this year. Wyman has proposed that the surplus be used to fill the state's Rainy Day Fund, pay down state debt and issue rebates to taxpayers.

Also generating greater-than-expected revenues are the sales tax ($46.1 million over budget) and the corporation tax ($43.6 million over budget).

The strong tax revenues compensate for continued overspending by the state. Spending this year is expected to exceed the constitutional spending cap by $40 million, mostly due to an $80 million appropriation for a new sports stadium in Hartford.

Wyman's projection of a $458.9 million surplus is based on the modified cash basis of accounting used to formulate the state budget. Wyman advocates that the state adopt Generally Accepted Accounting Principles (GAAP), which gives a more accurate picture of the state's revenues and liabilities.

Under GAAP, the state has a cumulative general fund deficit of $694.3 million.

The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
March 1, 1999

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