Comptroller Kevin Lembo in a letter to Governor Lamont, reported that the State of Connecticut has ended the 2020 fiscal year with a $38.7 million year-end surplus.
“The COVID-19 pandemic introduced tremendous financial uncertainty,” Comptroller Lembo said.
“Thankfully, policies put in place a number of years ago to grow the state’s reserves are working as intended and the rainy day fund has grown to capacity. The economic consequences of the ongoing public health crisis will be with us well into the future, but thanks to prudent fiscal planning we are better prepared to face them.”
After a highly volatile year, the state’s budget reserve fund – commonly known as the rainy day fund – grew beyond its statutory cap of 15 percent of general fund expenditures.
As a result, the Office of the State Treasurer must now deploy the amount in excess, as well as the full FY20 surplus, toward unfunded pension liability.
“The fiscal decisions this administration has made over the last year coupled with the policy and revenue changes from the 2017 bipartisan budget have helped Connecticut’s finances and put us on a path to where we’ve grown the rainy day fund to historic levels, leading the nation,” Office of Policy and Management Secretary Melissa McCaw said.
“We know that the global pandemic is having an impact and we will continue to monitor the trends. The news that we are receiving today demonstrates we are in a strong starting position as we enter this new fiscal year with many challenges that lie ahead.”
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