Despite 7.7% inflation and an uncertain global economy, Connecticut’s budget is poised to end the year with a $2.8 billion surplus, according to projections by budget analysts.
“While this news is certainly encouraging, we must remain vigilant against future economic turmoil,” Gov. Ned Lamont said. “I remain concerned that the global economic situation, impacted by geopolitical forces outside the control of Connecticut’s leaders, may affect our future financial position.”
The consensus revenue report, which is issued three times a year, found that revenues are running $571 million over projections.
“Connecticut has put its fiscal house in order, and to ensure the progress we have made continues, I will be proposing as part of my budget next session an extension of the financial guardrails, secured by bond covenants, to maintain our strong financial position,” Lamont said.
Some of those guardrails that were put in place by the 2017 bipartisan budget expire in June 2023.
As part of that bipartisan budget, lawmakers created what’s called a “bond-lock” which prevented lawmakers from repealing those various spending, revenue, volatility and bonding caps.
“Extending these protections will send a strong signal to businesses, investors, credit rating agencies, and the public at large that Connecticut is serious about living within our means and saving for the future,” Lamont said. “As we develop a budget proposal that will be delivered to the General Assembly in February, these protections and their associated benefits will serve as the backbone of that proposal.”
The next revenue projections are due in January.