Last week, the Connecticut comptroller projected the state’s fifth consecutive surplus and a General Fund surplus of over $1 billion dollars.
Comptroller Sean Scanlon said that Connecticut will deposit just over $3 billion into pension funds by the end of the fiscal year.
Coming up with these numbers is a complicated job that involves various parties, Press secretary Madi Csejka said.
“[The Office of the State Comptroller], the Office of Policy and Management and the Office of Fiscal Analysis track monthly changes in the state’s revenue and expenditures until the fiscal year is complete and all transactions are final,” Csejka said. “Once the fiscal year is over and the state’s books are closed, the auditors review and certify the state’s position-surplus or deficit. Once the surplus is certified, it can be deposited to the appropriate accounts.”
Csejka went on to explain the comptroller’s job and responsibilities.
“In simplest terms, the comptroller is the fiscal guardian for the State of Connecticut,” Csejka said. “The Comptroller is responsible for depositing the surplus funds into the Budget Reserve Fund and designated pension accounts — State Employees Retirement System and Teachers Retirement System.”
The surplus money has multiple causes and uses, Csejka highlighted. Although the surplus money is not directly given to Connecticut residents, its importance can be attributed to things like lower taxes or expansion of public services that are decided by the legislature.
“This money can and will go to many different things. As required by statute, we deposit part of the surplus into the state’s Budget Reserve Fund, which safeguard the state against economic downturn,” Csejka said. “Once that fund reaches its statutory maximum at 15%, any remaining excess funds are used to make additional payments towards the state’s unfunded pension liabilities, which will save future generations a lot of money in the long-run.”
Scanlon explained in a press release the benefits of the possible approval of Governor Ned Lamont’s recent proposals to reduce healthcare costs to his office as well as the residents of Connecticut.
“Passage of this proposal will allow my office to enter into a multi-state contract that will offer discount cards to all Connecticut residents, which will enable them to save significant money at their local pharmacy counter in the future,” Scanlon said.
Having multiple consecutive surpluses has allowed the state of Connecticut to have financial comfortability and reliability, Csejka highlighted.
Csejka outlined that if finances are maintained, taxes and investments are properly accounted for, future generations can be spared. “As I stated earlier, having this predictability in our state’s finances also makes Connecticut more attractive to new residents and businesses.”