More Borrowing May Be on Horizon Despite Surplus
by Christine Stuart | Sep 1, 2010 3:50pm
(13) Comments | Commenting has expired
Posted to: State Budget
State Comptroller Nancy Wyman certified a $63.4 million budget deficit Wednesday afternoon and at the same time closed the books on last year’s $449.4 million surplus.
Wyman, who is also the Democratic nominee for lieutenant governor, warned lawmakers not to get excited about the nearly $450 million surplus because if it hadn’t been for the $1 billion in federal stimulus funds or the $1 billion in borrowing the state really would have been running a $844.4 million deficit.
“State government was fortunate to have these one-time funds available to help weather the economic downturn, but there was little other positive news in a very difficult year for our state and our taxpayers,” Wyman said.
In her letter to Gov. M. Jodi Rell, Wyman said spending in 2010 was $26.8 million below the prior fiscal year, a decline of 0.2 percent. However, much of the low growth rate is attributable to payment deferrals. Historically, the state has increased spending at six percent over the past three fiscal years, adding about $2.7 billion in spending over that period of time, Wyman said.
The revenue side of the budget saw a modest increase, but still fell about $33 million short of budget expectations. Overall tax revenues grew just 1.7 percent in 2010 – well below the typical historical growth rate of about 5 percent.
Wyman attributed this to the economic downturn and associated job losses.
During the first six months of the fiscal year job losses totaled 15,100 payroll positions; in the second half of the fiscal year the state regained 13,300 of the lost jobs.
Heading into the third month of this fiscal year Connecticut’s budget is already starting to reveal structural deficits that were temporarily plugged the last two years with federal funds and borrowing.
Sales and income tax receipts are up and posting notable gains.
The income tax is expected to exceed original budget estimates by $127.5 million, and the sales tax is projected to end the year $153.8 million over budget.
“While we all hope that this positive trend in jobs and revenue continues, it is still far too early to call this a solid recovery,” Wyman said.
Wyman certified a $63.4 million deficit this fiscal year, which she attributes mostly to the $171.7 million in deficiencies from the state’s inability to find the savings promised in the budget.
Taking all of this into consideration Wyman concluded that the state will still need another $700 million in borrowing to “correct for structural budget imbalances.”
(13) Comments
posted by: Mansfield1 | September 2, 2010 9:06am
it’s easy to place blame on the “Democratic General Assembly but who’s been in charge of the Executive brach for the last 15 years? The Republicans have a miserable record of not dealing with the State’s problems (transportation, healthcare, communications, allowing State Agencies to fall under the control of the Federal Courts, education, etc.) so why should we expect a Republican General Assembly to do anything more than ignore Connecticut’s needs? Why have so many managers and commissioners, deputies and Section Chiefs hired by Rowland/Rell and so few frontline people who actually “serve sombody” to use Bob Dylan’s memorable lyric? Our two most recent governors have the CEO (Foley??) disease of thinking it’s only all about them.
posted by: eastrivertype | September 3, 2010 2:25pm
What a joke to think that we have any kind of a surplus! The structural hole has been here for years and was made worse by the huge Democratic majority in both Chambers and by the absence of leadership by the Governor. It is absurd for anyone to say that the Democrats or the Governor were not at fault. About the only people that were relatively blameless were those irrelevant Republican legislators (yes there are a few) who the Governor’s office wouldn’t even include in discussions. That is why we don’t need another “government” type like Dan Malloy. His solutions are more of the same, i.e. lets invest in job creation and education, and lets convert to GAAP, etc. Show me the money! Contrary to Nancy Wyman hoping it will get better, we need specifics not trust me. There is no money to invest! $4Billion deficit and massive underfunded liabilities. Hopefully the voters are not that stupid. Can you say California or Greece?
posted by: Mansfield1 | September 3, 2010 4:02pm
So you like the roads, think we’re up to date on infrastructure and doing what’s necessary for education? Got our rail, electrical grid and communication systems in order? Can you say Texas which is investing billions in all of the above in order to be ready when tomorrow arrives? The sun will come up tomorrow so I think we better find some money to invest.
posted by: hawkeye | September 5, 2010 10:08am
Mansfield1:
The Republicans cannot get a worthwhile bill through the Connecticut General Assembly. as the Democrats use their majority VETO power. And they can’t stop Democrats from making an over $7 million dollar political campaign contribution to Dan Malloy, at the expense of the state taxpayers. Some call it taxation, without representation, as the Democratic majority, do not represent the people, only their political party.
posted by: Mansfield1 | September 7, 2010 8:33am
So you’re saying that the Connecticut voters who elect 114 Democrats to 37 Repuplicans to the House are not both people and citizens?
posted by: hawkeye | September 7, 2010 8:42pm
Mansfield1:
Connecticut voters also elected Barack Obama. They made a voting mistake, with Obama, as they made in voting in a inept, Democratic General Assembly. Obama’s Congressional henchmen, however, will start being voted out of Congress, on Nov. 2.
posted by: CT Jim | September 7, 2010 9:51pm
Hawky,
You are ranting along like your some huge movement that is sweeping Ct up in some imaginary tide deep in your brain.
Lets face it you are but one person and based on how shrill and vulgar you seem to be, your chances of swaying people to your side are slim.
I for one like democracy and let the voters decide.
The people that matter are voters.
If Healy is paying you give him his money back, cause you sure aint delivering.
posted by: Mansfield1 | September 8, 2010 3:01pm
Hawk, They made no mistake. Having Sarah Palin a heartbeat away from the trigger on America’s nukes is not something that could ever be justified. A mistake? And by such an enormous margin? Naah!!
posted by: hawkeye | September 8, 2010 4:14pm
CT Jim:
Wait till Nov. 2, when they will separate, the men from the boys, although, you may be more bitter, than you already are, with the outcome!
Mansfield1: Don’t hide Pres. Barack Obama, behind Sarah Palin’s skirt! Must you sink so low, to attack, a private citizen in Alaska, as a cover for the failure of Team Obama?
You are in a panic and desperate, Mansfield1! Wait until Nov. 2, when you can “cool your heels!”
posted by: CT Jim | September 9, 2010 5:50am
Ya know hawky,
Outside of CT there is a slew of close races, that is a fact.
You can scream all you want about Nov 2nd but in this state the Dems are ahead in ALL 5 congressional races, the US Senate race and the Governors race.
And based on a debate I went to last night in one CT town these teabaggers wont be picking up any state rep or state senate seats anytime soon LMAO!
One cadidate was so bad ranting about the constitution and the lowering of taxes on the wealthy that even his WIFE was shaking her head no when he was speaking.
I have no control as to how people vote nor do you but one thing you can be assured of you guys are gonna get pounded in your so-called year of the republican.
Great Job Hawky!
Once again you guys keep working your jaws while we are working the ground.
posted by: hawkeye | September 1, 2010 7:29pm
We should not be borrowing money, because the “BIG-SPENDING Connecticut Democratic General Assembly,” will have more money to dispose of, and State taxpayor’s will have, a more massive state deficit to pay-off! Also, Lord have mercy on us, if we elect a Democratic governor, to top it off!