Governor Rell Announces Surplus Figures

Governor M. Jodi Rell today announced that the state budget surplus now stands at approximately $502.2 million, up $15.7 million from last month’s estimate.

“It is wonderful that we have a projected surplus, but I will continue to repeat that this news should not be taken as a license to expand government spending,” Governor Rell said.  “Our state’s credit card is maxed out, and the payments we have to make on what we owe are getting higher and higher.  To make sure those long-term debts do not completely tie our hands in the future, we need to focus on controlling our spending.”

State government's bonded debt stands at about $14.2 billion, and it is expected to hit $14.8 billion next year.  By 2010, debt service based on current trends could approach $2.17 billion, or 12.1 percent, of the total budget.

The governor noted that over the past five months, Connecticut has gained over 6000 jobs.  State government currently has more than $1.1 billion in its emergency reserve.  More good news for Connecticut businesses comes January 1, when the 20 percent corporate tax surcharge will be taken off the books.

The budget bill Governor Rell signed in May allocated an additional $245.6 million to fully finance the Teachers’ Retirement Fund at 100 percent for Fiscal 2006 and Fiscal 2007.  It also included $85.5 million to pre-pay the Economic Recovery Notes issued during an economic downturn in 2002-03.