Governor M. Jodi Rell’s budget office announced Tuesday that the state ended fiscal year 2010 with a $393.3 million surplus, an increase of about $150 million over the administration’s estimates last month.
If state Comptroller Nancy Wyman certifies the surplus on Aug. 1 then the surplus will be used to reduce next year’s deficit and $956 billion in borrowing. The budget specifies that the first $140 million of any surplus from 2010 will go to the state’s General Fund and any additional surplus will be used to reduce future borrowing.
“Not only does this reduce our debt burden, it also reduces the ‘structural deficit’ for Fiscal 2012 and beyond because it means the payments we will have to make will be smaller,” Rell said. “It has a positive ripple effect for years to come.”
“All too many Connecticut families are struggling, and the pain is not yet over because the recovery is just beginning,” Rell said. “However, the surplus news today means that there will be far less borrowing needed to help balance the budget this year than originally planned – and that is good news for every Connecticut family.”