Some EXCELLENT fiscal news for Connecticut

January 19, 2021

While the COVID-19 pandemic has hit all states extraordinarily hard financially, it's important to recognize glimmers of hope when we see them. Which is why I am excited to share with you some excellent news about Connecticut's fiscal picture!

Thanks to a record $3 billion in our state's rainy-day fund and responsible state budget practices, Connecticut's consensus revenue estimates from state budget analysts predict a budget surplus of $70 million in Fiscal Year 2021. This is an incredibly positive change as state budget analysts had previously projected a deficit of over $850 million. In addition, the projected deficits for fiscal years 2022 and 2023 were both cut in half.

Today’s announcement also impacts the state’s bond cap, which functions as the state’s credit card limit. Under previous estimates, the state would have only been able to bond approximately $200 million next fiscal year. Today our bond cap is closer to $2 billion. This is good news as it allows Connecticut to bond for infrastructure improvements and efforts focused on helping people get back to work.

Connecticut is in much better shape than many of our neighbors, with states such as Massachusetts and Texas facing billion dollar deficits. We are certainly not out of the woods yet and our state still faces significant challenges, but this is a step in the direction of progress as we work towards recovering from the COVID-19 pandemic.

This welcome news is only possible through the smart choices and decisions which were made across government in past years to be prepared for potential emergencies and hardships, and the benefits of those decisions are now coming to pass.