Politics & Government

CT Banks Over $121M Surplus in 2014

Final surplus is almost four times what was estimated a month ago.

Connecticut closed out the 2014 fiscal year with a $121.3 million surplus — more than three and a half times the projections made a month ago.

In his monthly letter to the State Comptroller, Office of Policy and Management Secretary Ben Barnes noted that the surplus was helped largely by $154.8 million in reduced spending. The surplus also brings the state’s Rainy Day Fund to its highest level since Gov. Dannel Malloy took office 4 years ago.

By state statute, extra funds at the end of the year must be deposited into the Rainy Day Fund, which is now at $392 million.
 
“While there is still much work to do, we are making progress in our effort to make state government more sustainable for the long term,” Gov. Malloy said Tuesday. “Depositing this surplus into the Rainy Day Fund, combined with our efforts to limit spending, are just a few of the ways that we are taking responsible steps to restore the fiscal health of our state.” 
 
In his letter, Barnes notes that the previous estimate on June 20 was for a surplus of $33.2 million.
 
“While we aren’t yet where we want to be, this shows that Connecticut’s on the right path,” Barnes said. “Prudent fiscal policy under Governor Malloy — with average annual budget growth lower than those of his last two predecessors — means we are building reserves that are an important contingency against any future economic downturn.”

Read Secretary Barnes’ full letter.


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