Connecticut Comptroller Natalie Braswell is projecting a General Fund surplus of $1.48 billion for Fiscal Year 2022.
In her first financial forecast update since succeeding Kevin Lembo as comptroller, Braswell observed the state”™s economy continued to “modestly expand and add jobs,” with the state”™s unemployment claims receding to pre-pandemic levels.
But she also noted that the housing market is still burdened with insufficient inventory to meet growing demand, thus creating a slowing in sales and an increase in home prices. Braswell also highlighted consumer retail spending is being impacted by increasing inflation.
“There are some really promising signs in this month”™s economic data including a substantial surplus projection,” said Braswell. “While this is undeniably good news, we can”™t lose focus on the long-term budgetary reforms that have helped get Connecticut”™s fiscal house in order. I encourage policymakers to explore all options to grow the middle class and lower the cost of living in our state, but they must be done in a sustainable manner that doesn”™t rely on federal interventions that can”™t be counted on in future years.”
Braswell added that “revenue increases in volatile categories and the projected surplus” would bring “another large deposit” to the state”™s Budget Reserve Fund, more commonly known as the Rainy Day Fund. Because the fund reached its statutory cap, the estimated $2.33 billion deposit would be used to pay down pension debt and other state bonded indebtedness.
