Comptroller Kevin Lembo put the state budget surplus for 2014 at $121.3 million in a Friday letter to Gov. Dannel P. Malloy, noting that adjustments to the estimate will continue throughout August.
Lembo’s latest report mirrors estimates by the Malloy administration in late July, which revised the surplus upward by $63 million to reflect increased federal Medicaid reimbursements and stronger personal income tax revenue.
In a press release, Lembo said the state’s overall economy has shown “gradual improvement.”
“As the state has experienced five consecutive months of job growth, the withholding portion of the income tax has been trending upward,” he said. “This is something to be optimistic about — and hopefully it will sustain through the end of the year.”
If the surplus number holds until around Dec. 30 — when the fiscal year’s final audit is completed — the $121.3 million will be deposited in the Rainy Day Fund, bringing the balance in that fund up to $392 million.