Personal income tax receipts came in higher than anticipated during May and June, which allowed Gov. Dannel P. Malloy’s budget director to adjust the surplus up $123 million more than last month.
Ben Barnes, Malloy’s budget director, predicted Monday that the state will end the year with a $359.6 million surplus.
In his monthly letter to state Comptroller Kevin Lembo, Barnes said personal income tax receipts were up $55.1 million over last month. The corporation tax also was revised upward by $15 million.
Even though fiscal year 2013 technically ended on June 30, the state will continue to tally revenue through August 7 and Lembo will certify the 2013 budget numbers on Sept. 1.
In his July letter, Barnes said spending is expected to end the year $133.7 million below the original budget, an improvement of $35 million from last month’s estimate.
Based on the budget adopted by lawmakers last month, another $138.8 million will be transferred to the Rainy Day fund bringing the balance in that account up to $232.2 million.
“Given the deficit forecasts issued earlier in the fiscal year, we note that this deposit is a significant accomplishment, and that rebuilding reserves will serve the state well as a contingency against the next economic downturn,” Barnes wrote to Lembo.
Lembo will release his budget projections on Aug. 1.