State Surplus Estimated At $265 Million

HARTFORD (AP) — State Comptroller Nancy Wyman says the budget surplus will reach $265 million, but could have been higher.

On Monday, Ms Wyman criticized faulty budgeting practices for draining excess revenue from the state’s coffers to meet ongoing expenses.

Monday’s surplus projection is up from $245 million in March.

Revenues are expected to exceed originally budgeted expenditures by more than $405 million when the fiscal year ends on June 30, Ms Wyman said. But $140 million in unbudgeted spending has reduced the net surplus to the current projection, she said.

Ms Wyman said the state should not build budgets that rely on economic growth to stay in balance. She said creating unrealistic spending plans gives lawmakers the impression that the state can increase spending and cut taxes at the same time.

“The state should not be relying on excess revenue produced by an overheated economy just to make ends meet,” Ms Wyman said. “The taxpayers who created this surplus deserve a budget that accurately reflects the cost of running state government. Fortunately, the economy has been producing enough revenue to keep the budget in balance.”

Marc Ryan, Gov John G. Rowland’s budget director, said the state can cover all but about $100 million in tax cuts for next year.

“That’s not a large percent of the budget,” Mr Ryan said.

Mr Ryan said Gov Rowland’s plan is to use about 75 percent of the surplus to avoid going into debt for one-time projects, rather than using that money to pay for ongoing costs.

Combined, the income and sales taxes are expected to generate about $7 billion by the end of the fiscal year, Ms Wyman said.