Economy sparks growing state surplus
Other highlights:
(Oct. 16, 2007) Higher revenues than originally expected have led the Office of Policy and Management to project a state budget surplus of $4.9 million for this fiscal year (2008). While far from the nearly $1 billion surplus realized in fiscal year 2007, the new projection is much higher than the $800,000 surplus planned for in this year’s state budget.
Connecticut’s economy continues to perform well despite the nationwide subprime housing issue. The state is outperforming the U.S. average in the creation of jobs, and various reports show strength in exports of goods and business-to-business activity.
While various economic experts predict an increased risk of recession, most forecasts are calling for slower growth (not recession) into 2008.
State ranks 38th for business tax climate
(Oct. 16, 2007) Connecticut’s overall business tax climate is ranked 38th in an annual nationwide study, a slight improvement over last year, when it ranked 39th.
According to the Tax Foundation, a Washington D.C.-based think tank that conducted the study, taxes affect business decisions, job creation and retention, plant location, competiveness, and the long-term health of a state’s economy.
Connecticut fared better than many of its competitors in the 2008 study, except New Hampshire, which ranked 7th and Massachusetts in 34th place. North Carolina ranked 40th, and New York, New Jersey and Rhode Island ranked 48th, 49th and 50th, respectively.
“States with more competitive tax systems … are best suited to generate economic growth,” said the Tax Foundation.
For more information, contact CBIA’s Bonnie Stewart at 860-244-1925 or stewartb@cbia.com.
Governor’s economic panel includes CBIA
(Oct. 16, 2007) Gov. Rell has formed an eight-member panel of economists to advise her on key issues affecting the Connecticut economy.
The Governor’s Economic Advisory Panel is led by Don Klepper-Smith, chief economist and director of research at DataCore Partners LLC, and the panel includes CBIA Economist Peter Gioia.
In September the state Department of Labor reported that total employment in Connecticut — 1,701,600 —exceeded the July 2000 high of 1,700,700 jobs. Nonfarm employment in August represented an increase of 1,200 jobs from the revised July figure. Since January 2006, Connecticut has gained approximately 27,600 jobs.
For more information, contact Pete Gioia at 860-244-1945 or gioiap@cbia.com.
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