CT revenues projected to be stable, rainy day fund to grow this fiscal year

Connecticut”™s revenues should remain stable and its emergency budget reserve, or rainy day fund, should grow in the upcoming fiscal year, according to the latest projections by the Office of Policy and Management and the Office of Fiscal Analysis.

According to their consensus report, the state will realize about $169 million more in revenues than had been anticipated. Meanwhile, Connecticut”™s budget deficit is projected to grow from about $28 million to roughly $60 million, due in part to its recent settlement with state hospitals.

The rainy day fund, which stands at $2.5 billion, is projected to grow to $2.76 billion. Should that amount rise to roughly $3 billion, representing 15% of annual operating costs, the state would be required to use the excess to reduce its pension debt.