Comptroller Natalie Braswell has updated her financial forecast to report a $2.1 billion surplus in Connecticut”™s General Fund surplus for Fiscal Year 2022. This marked a $381 million increase from her projection last month.
Braswell noted that Connecticut”™s economy is moving away from the havoc of the pandemic era ”“ the state now recovered nearly 82% of the jobs lost at the onset of the Covid-19 lockdown, with some sectors now exceeding their pre-pandemic levels. However, she warned that housing costs remained elevated and inflation continued to challenge local households.
“The economic data is largely positive, but the high cost of goods, including essentials like food and gas, are having a punishing effect on many Connecticut families,” said Braswell. “There are many reasons to be positive about the direction of our state”™s economy and to celebrate the smart decisions that got us here, but there also remains an urgent need to help our residents weather this persistent crisis so they can fully reap the benefits of that work.”
Braswell added that approximately $4.7 billion would be available to reduce unfunded pension liability and other types of debt if her current projections remain solid.
“There”™s no denying the incredible progress we”™ve made in stabilizing state finances and addressing chronic budgetary problems,” she continued. “The state”™s Rainy Day Fund is at its all-time high. We”™re saving future taxpayers billions by persistently attacking decades-old pension debt. And we”™re doing it in a way that will guard against future tax increases and cuts to critical services.”
