State Budget Outlook Remains StrongOctober 13, 2022
Sound budgeting by the legislature and governor has kept state finances strong, and has led to record balances in the "Rainy Day" reserve fund and historic payments toward reducing long term pension and debt obligations.
An estimated $444.6 million surplus for the current fiscal year was reported last month by the governor's budget office, and the state comptroller announced that her office will transfer $3.1 billion into the "rainy-day" reserve fund.
That record balance in the reserve fund triggered a statutory mandate that requires a special payment of $2.8 billion to be made toward the state’s unfunded long-term pension liabilities.
This payment, which will be allocated into several pension funds later this year, will save Connecticut taxpayers approximately $6 billion over the next 25 years.
Connecticut was able to build its reserve fund and pay down long-term debt through years of deliberate and careful policy adopted by the legislature and governor together. These decisions have allowed us to make investments that will not only benefit residents now, but for years to come.