CT used billions of budget surplus dollars to pay down pension debt, freeing up $440 million annually to use for other programs.
Regular and supplemental payments into the state’s cash-starved pensions will approach $6.5 billion this year.
More than six out of every 10 federal relief dollars built into the new state budget is earmarked for pensions.
As tax revenues continue to grow, Connecticut is on pace to close the fiscal year with $800 million to spare.
Another potential wave of federal stimulus, a complex spending cap and other variables cloud the next Connecticut budget debate.
Projected state revenues skyrocketed by $1.7 billion Friday, positioning officials to balance the next state budget without tax hikes.
The shortfalls are due largely to the coronavirus-induced recession.
The improved fiscal picture increases the likelihood Gov. Ned Lamont can avert major tax hikes next spring.
Don’t expect to see Gov. Ned Lamont propose big tax hikes or huge spending cuts to close a $2B deficit.
Gov. Ned Lamont projects a $2.1 billion deficit, based partly on pessimistic stock market projections that haven’t come to pass.
The projections, much rosier than initially predicted, sparked renewed calls from lawmakers for more state spending to combat the pandemic.
State income tax receipts collected since the July 15 filing deadline continue to rise, bolstering Connecticut’s rainy day fund.
Connecticut’s recent economic gains could soon slip away without more federal aid, Comptroller Kevin P. Lembo says.
While state analysts struggle with economic uncertainty, they concede Connecticut’s vaunted budget reserve could be gone a year from now.
The first sign that the coronavirus has infected Connecticut’s budget presented itself Wednesday.