WYMAN SAYS DEFICIT MITIGATION PLAN, REVENUE GROWTH


	STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

WYMAN SAYS DEFICIT MITIGATION PLAN, REVENUE GROWTH PRODUCE $105 MILLION SURPLUS
	Contact: Steve Jensen
	860-702-3308/3301
	Steven.Jensen@po.state.ct.us

After 20 months of decline, a recent upswing in jobs and collection of the income tax has combined with a deficit-mitigation plan to produce an estimated 2010 budget surplus of $105 million, State Comptroller Nancy Wyman said today.

Wyman noted, however, that most of the approximately $500 million deficit on the books for the bulk of this fiscal year was not eliminated by tax revenue gains, but by various elements of a deficit-mitigation plan passed by the General Assembly.

"This surplus is mainly produced by federal stimulus dollars, deferral of payments to the pension fund and one-time transfers of money from accounts including the Rainy Day Fund," Wyman said. "While this modest economic turnaround is certainly good news, it does not lessen the fiscal challenges that the state will face in the coming years."

The 2011 budget is projected to be in deficit by about $700 million, and a $3.8 billion shortfall is estimated for 2012.

The current $105 million estimated surplus is based on a budget of $18.6 billion for the fiscal year that ends June 30

Recent economic improvements in Connecticut include:

Net job growth of about 6,400 positions over January, February and March, led by the leisure and hospitality industry.
Overall income-tax growth of 2.4 percent, which included robust collections around the April 15 tax-filing deadline.
Increases in home sales and new building permits, although prices continue to be depressed.

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

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For Immediate Release
May 1, 2010

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