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2016 Budget On Track To End With Small Surplus

by | Aug 26, 2015 4:30am () Comments | Commenting has expired | Share
Posted to: State Budget, Taxes

CTNJ file photo One month into the new 2016 fiscal year, Office of Policy and Management Secretary Ben Barnes estimated that the state would end it next June with an $800,000 surplus.

In his monthly letter to state Comptroller Kevin Lembo, Barnes wrote that “at this time we project that both revenues and expenditures will be consistent with the budget plan.”

However, he did note that administration officials have overestimated the amount of revenue it will receive from licenses, permits, and fees because those categories all ended 2015 below expectations. He said that trend is likely to continue into 2016.

Barnes also said the state will be keeping a close eye on the revenue it anticipates from the implementation of Keno.

The Connecticut Lottery plans on rolling out Keno in January 2016. According to the minutes of the Lottery Board’s last meeting in June, the bingo-like game is part of a long-term growth plan. The budget assumes the state will realize $17 million in revenue before the close of the 2016 fiscal year in June.

Transportation Fund revenue was revised upward by $6 million based on the motor fuels tax. The collections for fuel taxes ended the year above projections.

“As the year progresses, these estimates will undoubtedly be revised to reflect the impact of changes in the economy, expenditure patterns, and/or other factors,” Barnes wrote.

The state will officially close the books on fiscal year 2015 in September, but it’s likely they will need to transfer $70 million from the rainy day fund to close that year’s deficit, but the numbers have not been finalized.

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(10) Archived Comments

posted by: Independent Mind | August 26, 2015  8:20am

One month into the new fiscal year and trying to put a positive spin on the tax and spend policies of Malloy???  Won’t be long before that $800,000 surplus turns into a $100 million deficit that we will need to cover with another tax hike!  It will then be blamed on GE when they leave!

posted by: SocialButterfly | August 26, 2015  10:55am

Another “smoke and mirrors” prediction by Ben Barnes after pilfering the rainy Day Fund. More Dannel Malloy regime “playing with the state books.”

posted by: Jim in Mfg | August 26, 2015  11:22am

His estimates have been pretty crappy and always skewed to project better numbers than we would see from an independent and realistic forecaster.

posted by: justsayin | August 26, 2015  5:11pm

This is not the time for this article it’s a Puff piece.

posted by: Janster57 | August 26, 2015  8:43pm

At this point I don’t believe anything Mr. Barnes says. I don’t know that he’s ever made a prediction that was true.

posted by: Biff Winnetka | August 26, 2015  9:46pm

$800,000 on a $45 BILLION dollar budget is equivalent to $8 on a $450,000 budget.

A $450,000 budget can swing +/- eight bucks easily.  And a $45B budget can swing +/- $800,000 easily.

Barnes is foolish to make such a prediction this early in the budget term and knowing that past tax revenue predictions have been overstated.

Barnes serves his master, Malloy, at great cost to his professional reputation and he doesn’t seem to care.

posted by: watcherkat54 | August 27, 2015  5:02am

Benny Barnes is just a front man for Danny the Terrible’s lies and fabrications.  All Benny and Danny are doing are making people move out of Connecticut.

posted by: SocialButterfly | August 27, 2015  10:04am

Barnes continues to “sell his political soul for a buck” led by the illustrious poor example of “Boss-man Malloy.” They should ask the Lord for forgiveness since they have declined to ask their constituents to forgive them for their sinful state political performances.

posted by: UpsideDown | August 27, 2015  3:02pm

Wait for Mr. Lembo’s assessment of the budget. It will be spot-on and worse by a mile contradicting Malloy and Barnes.

posted by: State_of_Connecticut_Ombudsman | August 28, 2015  6:02pm

It is easy to create a surplus if you “exclude” the current and future state employee pension and health benefit obligations from the total equation.  What a scam they are running on the voters and taxpayers of this state.

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