by Donald Eng
HARTFORD, CT — The state’s projected fund balance for the 2026 fiscal year fell to $136.3 million, according to the December fiscal analysis submitted to Comptroller Sean Scanlon from Office of Policy and Management Secretary Joshua Wojcik last week.
The projected surplus was down $28.1 million from last month’s forecast, and a significant drop from the $309.1 million projection at the beginning of the year.
General Fund revenues increased $167.9 million due to a transfer into the General Fund from the Budget Reserve Fund to mitigate actions from the federal government, Wojcik reported. Spending, though, will increase $352 million from the level anticipated in the adopted budget for the fiscal year, Wojcik said. That is primarily due to the additional spending related the the federal government budget cuts plus shortfalls in other accounts, including $12.5 million in housing due to rent increases and cold weather funding, $103 million in the Department of Social Services due to increased usage and higher than expected costs and $7 million in the Department of Emergency Services and Public Protection due to increased overtime costs, among other expenditures.
After the budget transfers, the Budget Reserve Fund will stand at $4.82 billion, Wojcik reported. Including an anticipated $1.8 billion volatility cap transfer, Wojcik said the projected year-end reserve will be just over $6.1 billion, or about 27% of the anticipated 2027 budgeted allocations.
“As the year progresses, these estimates will undoubtedly be revised to reflect the impact of changes in the economy, expenditure patterns, federal fiscal policy, and/or other factors,” Wojcik said.