The state ended the 2013 fiscal year with a $236.6 million general fund surplus, Comptroller Kevin Lembo reported July 1.
The state’s fiscal position improved by $24.3 million in June and by more than $600 million since deficit mitigation efforts began in December, Lembo stated.
“The state”™s financial outlook has further improved this month ”“ good news, but still showing reasons for caution because the most significant gains were potentially related to one-time revenue windfalls,” Lembo said in a release, marking the end of the fiscal year.
Most of the general fund surplus came from one-time revenue growth in inheritance and estate taxes, while sales and corporation taxes are expected to fall short of previous expectations, Lembo said.
In a controversial move, the state government plans to use $220.8 million of the 2013 fiscal year surplus over the next biennium budget, while $15.8 million will be deposited into the state’s rainy day budget reserves.
With the deposit, the rainy day fund will have a balance of $109.3 million, which some economists warn may be risky if the state falls into another recession.
As the state is also dependent on income taxes, which have fallen short in the slow economic recovery, Lembo reported the state’s most recent job reported posted 1,000 new jobs in May, bringing the year-over-year growth to 12,500 additional jobs.
While the state’s employment numbers over the past three months have been a significant improvement, Lembo said the state’s employment growth rate stands at .076 percent, about half the national rate.
