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Good News: CT On Track For $126.1 Million Surplus For Fiscal 2020

Good News: CT On Track For $126.1 Million Surplus For Fiscal 2020

Hartford Courant, September 6, 2019

By Daniela Altimari

State Comptroller Kevin Lembo said Connecticut is on track for a $126.1 million budget surplus for fiscal 2020.

But Lembo cautioned that it is still early and the figures could change because the state’s finances are closely tied to the health of the national economy. 

“Our early surplus projection for fiscal year 2020 should be treated with cautious optimism, because while there are positive early trends, they are just that – early,” Lembo said. “It should also be noted that Connecticut’s budget results are ultimately dependent upon the performance of the national and state economies.

For now, economic indicators for the national and state economies are sending mixed messages, with some positive movement on income tax revenue and home price appreciation among lower-price tiers – but also some trends in the bond market that could be recession indicators."  

Trade dispute back to top

While the state cannot control the volatility of the global financial markets or the impact of a trade dispute with China, it can prepare for the future, Lembo said. "The state is closer and closer to achieving a financial milestone in building an adequate budget reserve fund, and must continue to exercise financial discipline in this area,'' he said.

The surplus projection is for the fiscal year 2020. Over the long term, Connecticut faces about $80 billion in unfunded obligations, such as pensions and retirement benefits for state employees and bonding costs.