by Donald Eng
HARTFORD, CT — The state may end the fiscal year with a slightly larger surplus than expected, with both revenue and expenditures running above projections, according to numbers from the state Office of Policy and Management.
In his monthly report to Comptroller Sean Scanlon, OPM Secretary Jeffrey Beckham analyzed the state’s General Fund and Special Transportation fund for the 2026 fiscal year.
“The FY 2026 budget … anticipated a $309.1 million balance at year end – 1.3% of General Fund appropriations,” Beckham wrote. “We currently project a $322.3 million surplus, $5.5 million higher than last month’s forecast.”
According to the report, state revenues are projected to be $146.4 million above the budgeted $24.3 billion. That number was unchanged from the September report. Expenditures are projected at $24.16 billion, just over $133 million above the budgeted $24.03 billion. That projected overrun is about $5.5 million less than the office estimated in September, Beckham reported.
The bulk of the expenditures comes from a handful of accounts. Among them, the Department of Social Services, at about $65 million, is the largest. Beckham cited higher use and higher than budgeted costs.
The Home Care Program, Old Age Assistance and Aid to the Blind are all running above budget, and the Dec. 31, 2025 expiration of some enhanced tax credits will shift millions in health insurance costs to the Covered CT program, Beckham wrote.
The Department of Correction is also running $12.7 million above budget, as is the Comptroller’s office. Beckham attributed the comptroller shortfall to the state employee health care accounts. Higher than expected worker’s compensation claims also led to a $7.2 million projected shortfall in that line item.
Beckham concluded his report by stating that the state is still early in the 2026 fiscal year and the numbers were likely to fluctuate.
“It is important to note that this represents just the third projection of the state’s budget outlook for FY 2026,” he wrote. “As the year progresses, these estimates will undoubtedly be revised to reflect the impact of changes in the economy, expenditure patterns, and/or other factors.”