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Surplus Facts
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Revenue estimates are generated by the Office of Fiscal Analysis based on assumptions about the economic climate. While we have confidence in these projections, the actual revenues could either increase or decline depending on future economic trends. Until the tax receipts actually come in, any surplus is far from certain.
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This is the first step in a long process, where our budget is balanced without the tricks and gimmicks that have characterized prior budgets. We need to make sure our budget meets the GAAP standard and the changes we're making are headed in that direction.
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Governor Malloy has stated that surpluses brought in by this budget will go to reducing our debt obligations. Reducing our debt obligations sooner rather than later will save the people of Connecticut money in the long run, and is critical to exercising fiscal responsibility.
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The Governor also stated that surpluses will go to replenishing the Rainy Day Fund. We know how crucial the Rainy Day Fund was to keeping our state afloat during the economic downturn of 2009, and we believe that preparing for the future is preferable to scoring short-term political points.
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Rather than blindly cutting programs, we're making smart investments in our future—investing in education, transportation, and job creation. We are moving our state in a positive direction and should the economy continue to rebound, we can make positive changes when we can ensure stability.
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We have also built in sunset dates for some of the taxes established by this budget—for example, both the electric generator tax and the corporate surcharge tax will expire in two years. Once we've put ourselves on sound fiscal footing, we'll reassess which revenue streams produce a net benefit for our state and our economy.
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Given a choice, no family or business would run on the razor-thin margin that some have proposed for our state. It's better for us to try to operate in the black than in the red. Spending every dollar and slashing services, rather than creating a surplus and maintaining services, could risk future fiscal instability.
No Borrowing
No Gimmicks
An Honest Budget