Connecticut Forecasts $1 Billion Revenue Boost for Next Budget
Connecticut's budget office and the legislature's nonpartisan Office of Fiscal Analysis released a new consensus revenue forecast projecting an extra $1 billion over the next two-year budget cycle, plus more than $750 million in additional revenue for the current fiscal year. The state is now on pace for a $2.65 billion surplus by June 30, its second-largest on record, driven largely by capital gains, investment earnings and business partnership tax receipts. Gov. Ned Lamont called the projections evidence of a "stronger path" for the state's economy. Budget director Josh Wojcik cautioned that the projections are estimates that should be viewed with care and are also subject to federal policy decisions and a volatile global economy. The article notes that a special response fund of $263 million created to mitigate federal human services cuts is expected to be exhausted over the next year, backfilling Medicaid and other health care program cuts, and that lawmakers may look to dedicate more state funds to that effort.