Comptroller Natalie Braswell updated her financial and economic forecast and is reporting Connecticut”™s General Fund surplus has grown to $1.27 billion for Fiscal Year 2022.
In a letter to Gov. Ned Lamont, Braswell said this month”™s surplus projection increased by $231 million since last month due to $157.8 million in increased tax and other revenue growth, driven by a strong labor market, and a $73.3 million reduction in budgeted net expenditures. Fiscal Year 2022 revenue will continue to accrue through Aug. 5 and the unaudited year-end numbers will be available by the end of August or early September.
However, Braswell also noted that while the state is enjoying a strong labor market, high inflation and slowed growth could stall the ongoing economic progress.
“Our state”™s financial outlook continues to excel ”“ but a strong labor market, negative GDP and low consumer confidence are blurring economic predictions,” Braswell said. “Connecticut learned hard lessons when our state was caught flat footed by the Great Recession with depleted financial reserves, skyrocketing unfunded liabilities and debt that forced hiring freezes, program cuts and tax increases at the worst possible time for families.
“Those hardships were transformed into smart budget reforms that Connecticut can now use to protect families and fuel our economy,” she added. “Those reforms established a fully funded Budget Reserve Fund and an accelerated paydown of Connecticut”™s unfunded liabilities and debt. Our state must stay the course on smart financial decisions ”“ because strong reserves and lower debt will ensure more resources are available to fuel our economy and provide relief to families.”
