Governor Rell: Surplus Jumps by $83 Million

Governor M. Jodi Rell today announced that the budget surplus jumped by $83.1 million in the past month and now stands at a projected $88 million.

Better than anticipated revenues from the state income tax accounted for the rise in the surplus. 

In July, Governor Rell announced that nearly $270 million was deposited into the state’s Rainy Day Fund, bringing that fund total to over $1.36 billion.

“We continue to set new record highs for jobs and those jobs help to boost state revenues,” Governor Rell said.  “Nearly 20,000 new jobs have been created during the past year, and we have now seen job growth in eight out of the past nine months.”

“Our economy is moving in the right direction,” Governor Rell said.  “But I must remind the public and the legislature that the state's bonded debt of $14.5 billion is becoming more and more burdensome.  Eleven cents of every state budget dollar goes to principal and interest on that borrowing. 

“The charges we rack up on the state’s already maxed out credit card will weaken Connecticut’s economy over the long term.  We must show restraint on our spending.

“I have made it clear that the size of the bond package is too high and the amount for local projects is unreasonable.  The bottom line is that Connecticut cannot afford to borrow $4.6 billion over the next two years.  I will not allow that to happen.”

Earlier this month, Governor Rell announced that she has established an eight-member panel of economists to advise her on key issues affecting the Connecticut economy. The Governor’s Economic Advisory Panel will meet periodically and will be led by Don Klepper-Smith, Chief Economist and Director of Research at DataCore Partners LLC.  The Governor said that input from this panel will be critical in helping to create more jobs in the months and years ahead.