State’s economy yields big surplus, jobs

(August 1, 2007) The latest estimate of Connecticut’s state budget surplus for fiscal year 2007 is approximately $1.046 billion, about $136 million higher than the previous estimate, according to the governor’s office.

What's more, Connecticut gained 4,000 jobs in June, helping the state to revisit a significant milestone — 1.7 million jobs, matching the all-time record last achieved in the summer of 2000.

A robust state economy is producing the improved results. State officials have credited the burgeoning surplus, in part, to greater-than-expected revenues from the personal income tax and the corporate income tax. The state’s Office of Fiscal Analysis also reported this year that the state’s current tax structure likely will produce considerably more revenue over the next two years than originally expected.

When estimates of a growing state budget surplus began to appear during the final weeks of the 2007 session of the General Assembly, they helped persuade policy-makers to refrain from enacting significant tax increases.

More jobs
Business and professional services jobs in Connecticut jumped in June by 1,300, and educational and health services added 1,100 jobs. Since December, the state has added 14,000 new jobs. Some economists are saying the state could add more than 20,000 jobs this year, well above earlier forecasts.

According to CBIA Economist Pete Gioia, businesses’ need to fill positions is “finally being met by a growing number of workers. The workforce in the state is now increasing at more than 2% annually, compared with flat or negative growth over the past few years.”

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