State Budget Stays in Balance While Building Robust ReserveNovember 18, 2021
Connecticut's budget picture remains in good shape for fiscal year 2022, operating with a small surplus and building a robust long-term reserve fund.
The state's "rainy-day" reserve has continued to grow and currently has a balance of about $3.1 billion, making Connecticut a national leader in budget reserves. The Pew Charitable Trusts found that, in 2020, Connecticut’s reserves grew the second-fastest nationally, even in the midst of a global pandemic.
Our rainy-day fund is a critical resource in times of budgetary challenges. These reserves are a financial cushion which can soften the need for severe spending cuts or tax increases.
With $3.1 billion in savings, the state has the ability to continue to operate our essential programs and services such as education, healthcare, and municipal aid in the event of an economic downturn or natural disaster.
The profound growth of the rainy-day fund, from only $138 million in 2017 to $3.1 billion in 2021, is the result of smart fiscal policies, such as the strong bipartisan budget and saving reforms passed in 2017.
Overall, our abundant rainy-day fund is great news for the future of Connecticut as we continue to pay down our long-term debts and emerge from the pandemic stronger than ever!
You can read an article by CT Mirror on our state's budget reserves here.