The Lamont administration is starting with some good news for the state budget. The latest projections show that Connecticut will end this fiscal year with a $464 million surplus. That’s $204 million more than had been projected last November.
The Lamont administration’s first monthly consensus state revenue report credits the surplus on a surge in income tax revenue in the first half of the fiscal year, not from the rich but from middle class taxpayers.
According to the report receipts from personal income tax was up $75 million since November. That tax is the state’s single largest source of revenue.
In a statement, Lamont’s Budget Director Melissa McCaw says the surplus will be go to the state’s rainy day fund.
In the meantime, she said they are keeping an eye on recent developments in Washington that might affect market volatility and future taxpayer behavior as they prepare Lamont’s first budget to be delivered in February.
