Connecticut Comptroller Kevin Lembo has issued an updated forecast for a $131.4 million general fund surplus for fiscal year 2021, but he also added that more federal aid is needed to help the state”™s financially struggling residents.
Lembo credited the surplus to revenue collections and he pointed out a strong residential housing environment and record stock market highs as benefiting the state”™s economy. Yet he also noted an uneven jobs recovery, particularly for workers in lower-income sectors including leisure and hospitality.
“Unlike in past downturns, this recession is impacting jobs more than revenue,” Lembo said. “On a large scale, Connecticut has avoided the economic worst-case scenario. Yet, individual families and workers continue to struggle and face tremendous uncertainty. It”™s imperative that the federal government continue to provide support for those that need it most and include aid to states and local governments in new relief efforts to protect critical safety net programs.”
Still, Lembo expressed hope for the near future, citing increases in consumer confidence levels and roll out of vaccinations to mitigate the pandemic.
“Positive economic signs, both nationally and here in Connecticut, are cause for optimism,” he said. “Yet there are still many unknowns, including the adequacy of the federal response and the long-term effects of prolonged joblessness, that will shape what the coming months and years look like economically. The top priorities must remain protecting public health and getting people back to work ”” especially those that work for our small businesses.”
