by Doug Hardy
HARTFORD, CT – Comptroller Sean Scanlon is projecting surpluses of $113.2 million for the General Fund and a $126.4 million for the Special Transportation Fund for Fiscal Year 2025, according to his monthly update.
Scanlon said both surpluses are in “general agreement” with the projections from the Office of Policy and Management.
“Connecticut’s fiscal health continues to be in prime condition as we prepare to make another historic pension payment and embark on the next budgeting season,” Scanlon wrote. “While the stock market remains strong, our office is closely watching the Federal Reserve to see what impact an anticipated – and overdue – rate cut will have on our overall economic picture, and we remain optimistic, especially in light of our full Rainy Day Fund, which will ensure we can weather any downturn.”
Scanlon also noted that that while the General Fund’s surplus is lower than expected, revenue projections are $148.6 million higher than budgeted, partially offsetting projected higher-than-expected expenditures. In contrast, the Special Transportation Fund’s projected surplus is $58.3 million higher than budgeted.
As for the final closeout of FY2024, the comptroller’s office is currently projecting that $940.5 million will be used to pay down the state employees’ and teachers’ retirement pension debts. This is statutorily required since the Budget Reserve Fund (aka Rainy Day Fund) will be at its statutory limit.
The letter said the payment will mark more than $8.5 billion paid on the pension obligations in the past five years.
The projections – and the planned pension debt payment – are arriving just after a “rate shock” for electricity customers in July and early August following extremely high usage during what turned out to be the hottest month on record in Connecticut.
Republicans have been calling upon Democrats to come in for a special session to discuss changes to how the state’s electric utilities are managed and also to find money to provide ratepayers with some relief on their July bills.