Connecticut is closing its 2025 fiscal year with a $410 million operating surplus, up from the $297 million previously projected, according to State Comptroller Sean Scanlon.
“We are seeing growth that we’ve not seen in some time here in Connecticut, so I think things are moving in the right direction. But there are warning signs ahead that we will continue to monitor," Scanlon said.
He worries that federal policy might slow the state’s revenues going forward.
“If the layoffs tick up and people stop spending because they worry about losing their job, we could see some significant changes to our economy and an economic downturn that would get us to a recession,” Scanlon said.
Connecticut’s operating surplus doesn’t reflect nearly $2 billion already set aside to pay down the state’s pension debt.
State lawmakers expect to meet in a special session later this month to consider redirecting about $500 million of that money to offset federal cuts to Medicaid and other social safety net programs.
