Connecticut’s projected budget surplus for the fiscal year ending June 30 has improved to $245.9 million, thanks to increasing revenue and a November influx of more than $175 million in overdue taxes, State Comptroller Kevin Lembo announced this week.
That projection is up from just $4.4 million in October and $11.2 million in November.
Lembo said sales and corporation taxes are each up $30 million over initial budget targets, while real estate conveyance taxes are $15.6 million over earlier estimates.
Lembo, who is seeking reelection in 2014, warned that federal instability, defense cuts and other factors could change the budget outlook at any time. He wants legislators to use excess revenue to boost the balance of the state’s rainy day account to 15 percent of annual spending levels. The account was at $270.7 million, or 1.6 percent of planned spending, at the end of fiscal year 2013.
Lembo said federal instability and uncertainties could also jeopardize the state’s outlook at any time – including any potential cuts to the defense industry and nonprofits, as well as impacts on Wall Street, and consequently tax receipts from capital gains.
“The bottom line is that Connecticut should use any opportunity now to protect taxpayers from future financial threats and uncertainties,” he said.
