Connecticut’s $2.7 billion rainy day fund will help the state weather the COVID-19 economic storm, according to Governor Ned Lamont.
Lamont says many states in the country, like New York, have had to seek short-term loans to fill the budget gap created by the loss of sales and income tax revenue due to the COVID-19 shutdown. But that’s not the case in Connecticut.
“Fortunately because Connecticut has a rainy day fund and a strong cash position, we’ve got the wherewithal at least through this fiscal year to be in good shape. We have the wherewithal to pay all of our bills without going into the short-term market.”
Lamont says it also means that Connecticut can afford to give taxpayers a grace period on paying their sales, corporate and personal income taxes. Officials say the state might need as much as $500 million from its rainy day fund to plug the budget hole this year. The state would also get $1.4 billion in federal relief money as reimbursement for its COVID-19 expenses.
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