Officials in Connecticut have even more funds to use than originally expected, according to a new Consensus Revenue Forecast from the Office of Policy and Management.
The report projects more than $22 billion in general fund revenue, a stark increase from estimated funds with the budget passed last year.
“Thanks to today’s exceptional consensus revenue forecast, Connecticut will make a historic contribution towards paying down our longterm unfunded pension liabilities, helping the state to eliminate reliance on one-time federal dollars to balance the budget, and enable us to provide much-needed tax relief. OPM and OFA now anticipate an unprecedented balance in the budget reserve fund at the end of the year, a $1 billion increase over the January consensus revenue forecast, which will allow us to make record additional payments, totaling more than $3.5 billion, to reduce the underfunding in the state’s pension funds,” Governor Ned Lamont said in a statement.
“This will provide savings in future years and ensure that we can provide critical services while reducing taxes for residents and businesses. One of the things that has held our state back for decades are these unfunded liabilities, and from day one my administration has made reducing those liabilities a top priority. Today we are delivering on that promise.”
The report comes as lawmakers are working to develop a new budget, as they continue to debate various topics before the end of the legislative session.
Management Secretary Jeffrey Beckham added, “While today’s news is among some of the best economic news our state has seen in many years, there remains a great deal of economic uncertainty due to the ongoing pandemic, inflation, supply chain disruptions, war in Ukraine, and a changing international geopolitical climate. As a result, we must remain fiscally cautious and not commit to significant new ongoing spending initiatives.”
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