State Comptroller Kevin Lembo is reporting the state is showing a $200,000 surplus thanks to new revenue streams and expense reductions taken by the General Assembly in December. As recently as last month, before legislative action, the state was projecting a $350 million deficit.
Lembo said General Fund revenues are estimated to close the fiscal year $81.7 million below the budget plan – with the largest revenue reduction to the income tax, which has been revised down by $189.4 million due to slow wage growth and stock market volatility. His surplus projection takes into account $214.3 million in spending reductions and $135.8 million in revenue enhancements passed in December.
It’s too soon to tell, though, how long this surplus will last, Lembo said. Last fiscal year 44 percent of total estimated income tax payments were collected in December and January. In a statement, the comptroller said additional data will become available through January on the revenue impact of the August stock market downturn on income tax receipts. Updated consensus revenue forecasts – which could influence this year’s projection – are due on Jan. 15.
