Three months into fiscal year 2014, Connecticut is on pace to book a $4.4 million surplus, Comptroller Kevin Lembo said today.
That would be well below the $398.8 million surplus the state booked in fiscal 2013, which Lembo said was driven by low spending growth and higher-than-expected revenue growth.
Lembo said today he’s sent a letter to Gov. Dannel Malloy sharing concerns about historically volatile Medicaid spending and the uncertainty over what impact the Affordable Care Act will have on reimbursements and enrollment this year.
Lembo said he is also concerned by a trend of sales tax revenue falling short of projected levels. The state is monitoring those receipts, and Lembo said a revision of the surplus projection may be necessary if the trend continues.
The state is using about 55 percent of last year’s surplus to fund its budget this year. The remaining $178 million was deposited into the state’s rainy day fund.
