Connecticut On Track For $701M Surplus

July 07, 2019 - 8:44 am

HARTFORD, Conn. (AP) _ State Comptroller Kevin Lembo says Connecticut is on track to wrap up the fiscal year that ended June 30 with an almost $701 million surplus. 

The Democrat says that amount will be reduced by nearly $541 million to cover the cost of a new special reserve fund for the Teacher's Retirement System and an anticipated legal settlement with the state's hospitals over a taxing dispute.  Lembo says various state revenue generators have exceeded projections. For example, the state expects to take in nearly $40 million than originally projected from the state's sales tax and more than $25 million than anticipated from the corporation tax. 

Lembo says these ``over-performing categories are positive signs' but warns that Connecticut should maintain financial discipline and prepare for a possible economic downturn.