State ‘Surplus’ Defined

HARTFORD — A Connecticut Business & Industry Association economist said in a recent report that a slightly stronger economy has given state policymakers a bit more breathing room when it comes to this year’s budget. According to officials, Connecticut ended fiscal year 2010 on June 30 with about $150 million more in tax revenues than anticipated.

It’s not a “surplus,” but those extra revenues will allow the state to borrow less in order to balance the books in the current fiscal year. Policymakers agreed to borrow nearly $1 billion to cover this year’s spending commitments and avoid cutting any more state spending or increasing taxes.

Borrowing at that high a level was a controversial move, given anticipated deficits of more than $3 billion in each of the next two fiscal years.

“The state of Connecticut does not have a ‘surplus,’” said CBIA economist Pete Gioia. “What we have is less of a deficit, given higher-than-expected tax dollars, which will mean less borrowing. We are far from out of the fiscal woods because of a slowly growing economy.”