Early Budget Surplus Projection

The state comptroller says Connecticut is on track for a nominal, $4.4 million budget surplus in this fiscal year (2014).

But the projected surplus is tenuous, said the comptroller, because of many unknowns—including Medicaid spending and the impact of the Affordable Care Act on Medicaid reimbursements and enrollment.

Connecticut finished the 2013 fiscal year with a nearly $400 million surplus that was due in large part to substantial–but likely one-time–gains in the state’s inheritance and estate taxes.

This year promises to be another story—or set of stories—altogether, including what impact the federal shutdown will have on the state economy and budget.

The comptroller also cited sales tax revenues falling short so far.

State lawmakers will return in February for a three-month legislative session that will include making any necessary budget adjustments.

For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 or bonnie.stewart@cbia.com.