Connecticut's Big Budget Surplus Strengthens Resolve Against Taxes On The Rich

May 24, 2021

Connecticut is on track to end its fiscal year next month with a $470 million surplus, according to budget projections released last week. This data gives Governor Ned Lamont leverage as he negotiates against new taxes.

Lamont said the surplus, the state’s rainy day fund which is now $4.5 billion and $6 billion in federal rescue plan money coming to the state over the next three years strengthens his resolve against new taxes.

“We are in a very strong position budget wise. A rainy day fund the best we’ve ever had. A surplus. Not to mention the federal money. So you don’t raise taxes when you don’t have to raise taxes,” Lamont said.

Lamont is involved in closed door budget negotiations with Democratic legislative leaders. The Democrats have a budget package that has been approved by the Finance Committee. It includes a 2% capital gains tax increase for high-income earners, a new consumption tax on the rich and a 10% surcharge on corporate profits.

Both Lamont and the legislative leaders acknowledge that the state’s increased budget surplus might make it easier for them to reach a budget deal before the end of session on June 9th.