2016 Budget On Track To End With Small Surplus
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.