Some good news surfaced in struggling Connecticut, as the state’s budget director projected a $35.7 million surplus to close fiscal 2017.
According to Office of Policy and Management Secretary Benjamin Barnes, that marks a $142.9 million improvement from June, when the state was staring at a $107.2 million gap.
That's a $142.9 million improvement from last month, when it appeared the state was facing a $107.2 million shortfall.
“This improvement is due to a combination of successfully implemented austerity measures and strong year-end performance for several revenue sources,” Barnes said in a letter Thursday to state Treasurer Kevin Lembo.
By law, any surplus will go into the stabilization fund, bringing the rainy-day balance to $271.3 million.
“It should be noted that remaining revenue accruals, as well as [generally accepted accounting principles] accrual adjustments, are not yet finalized and may have a material impact on this projection,” Barnes wrote.
The special transportation fund, according to Barnes, will end the year with an operating deficit of $39.9 million, while its fund balance as of June 30 will be $102.9 million.
Meanwhile, Gov. Dannel Malloy and the legislature are still stalled on a budget. Fiscal 2018-19 began on July 1.
Moody’s Investors Service rates Connecticut general obligation bonds A1, while S&P Global Ratings and Fitch Ratings assign A-plus ratings. Kroll Bond Rating Agency rates them AA-minus.