Income Tax Revenue Boosts Budget Surplus
Personal income tax receipts came in higher than anticipated during May and June, which allowed Gov. Dannel P. Malloy’s budget director to adjust the surplus up $123 million more than last month.
Ben Barnes, Malloy’s budget director, predicted Monday that the state will end the year with a $359.6 million surplus.
In his monthly letter to state Comptroller Kevin Lembo, Barnes said personal income tax receipts were up $55.1 million over last month. The corporation tax also was revised upward by $15 million.
Even though fiscal year 2013 technically ended on June 30, the state will continue to tally revenue through August 7 and Lembo will certify the 2013 budget numbers on Sept. 1.
In his July letter, Barnes said spending is expected to end the year $133.7 million below the original budget, an improvement of $35 million from last month’s estimate.
Based on the budget adopted by lawmakers last month, another $138.8 million will be transferred to the Rainy Day fund bringing the balance in that account up to $232.2 million.
“Given the deficit forecasts issued earlier in the fiscal year, we note that this deposit is a significant accomplishment, and that rebuilding reserves will serve the state well as a contingency against the next economic downturn,” Barnes wrote to Lembo.
Lembo will release his budget projections on Aug. 1.