Comptroller Kevin Lembo has updated his financial forecast for Connecticut and is now projecting a general fund surplus of $470.5 million, up considerably from last month”™s $249.8 million projection.
Lembo cited strong revenue collections in May as the primary force behind the revised forecast, with a projected $300 million increase in the estimated and final payments portion of the income tax coupled with growing income tax withholdings.
“After enduring a tumultuous and volatile year, the growing projected surplus is not only welcome but indicates a positive sign of what”™s to come for Connecticut as we continue to recover from the pandemic,” Lembo said.
“As our economy continues to rebuild, and people return to the workforce, it will be critical that we not repeat the mistakes of the past and work strategically to grow the middle class and invest in Connecticut workers.”
Lembo also highlighted improvements in the state”™s job numbers and increased median housing prices as further evidence of an improving economy, but he also warned first-time homebuyers might be shut out of a housing market where inventory remains low and investors are driving up sales levels.
“Connecticut”™s economic future depends on keeping young people and young families in the state,” Lembo said.
“While the unemployment rate continues to decrease and the housing market continues to boom, we have to keep in mind that most of the benefits are still concentrated with high-income earners. As economic trends continue to move in a positive direction, we must be diligent and make sure everyone in Connecticut gets to participate in its recovery.”
