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

State Comptroller Nancy Wyman today said the state has closed its books on the 2010 fiscal year with a budget surplus of $449.4 million that was created mainly by federal stimulus funds and by nearly emptying the state's savings account.

"State government was fortunate to have these one-time funds available to help weather the economic downturn, but there was little other positive news in a very difficult year for our state and our taxpayers," Wyman said.

For the year that ended June 30, state expenditures exceeded revenues by $844 million in a total budget of $18.6 billion. That shortfall was turned into a surplus by measures including:

• Taking nearly $1.3 billion from the state's emergency Rainy Day Fund
• Using about $1 billion in federal stimulus funds
• Delaying a $100 million payment to the state employee pension fund
• Modest gains in tax revenue in the final few months of the fiscal year

The economic downturn and associated job losses resulted in overall General Fund tax revenues growing by just 1.7 percent for the year - well below the typical historical growth rate of about 5 percent and about $33 million short of budget expectations. Total General Fund spending was actually 0.2 percent lower than in fiscal 2009.

The state lost about 15,000 payroll jobs in the first six months of the fiscal year, but gained most of them back and ended the year with a net job loss of 1,800 positions, Wyman said. That upswing in jobs has led to recent gains in the two major revenue generators - the income and sales taxes.

Wyman noted, however, that the state is still feeling the effects of the loss about 100,000 jobs since the recession began in March 2008.

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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