State government is on pace to close the books on the last fiscal year $393.3 million in the black – $260 million higher than the surplus projected when the new budget was adopted in early May – Gov. M. Jodi Rell’s administration reported today.
The latest surplus projection, which also stands about $150 million above the administration’s estimate one month ago, stems from modest improvements in sales and insurance industry taxes and in revenue from licenses, permits and fees.
The new surplus, if confirmed by state Comptroller Nancy Wyman, would enable state government to reduce planned borrowing to support this fiscal year’s $19.01 billion budget from $956 million to $702 million. Rell insisted during budget negotiations this past spring, when the 2009-10 surplus was projected at $139.3 million, that any further surplus growth be used to reduce borrowing.
Though the 2009-10 fiscal year ended on June 30, various taxes continue to accrue over the summer and Wyman will not officially close the books on the fiscal year until October.