Comptroller Kevin Lembo and the state’s Office of Policy Management agree the state has a surplus of $121.3 million for the recently ended fiscal year, at least for now.
An infusion of Medicaid reimbursements from the federal government caused Lembo to increase his surplus projection from a month ago by $88.1 million. Income tax receipts are also trending upward.
“As the state has experienced five consecutive months of job growth, the withholding portion of the income tax has been trending upward,” Lembo said. “This is something to be optimistic about – and hopefully it will sustain through the end of the year.”
Lembo said the state will continue to accrue fiscal 2014 revenues through August. Lembo’s September update will include his first estimate of the state’s projected financial picture for fiscal 2015.
