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Connecticut Revenue Projections Improve on Corporate Tax Strength

January 17, 2017 By Staff
Connecticut Revenue Projections Improve on Corporate Tax Strength

Connecticut's Office of Policy and Management expects FY 2017 revenue to come in $57 million more than it projected in November.

On Tuesday afternoon, Office of Policy and Mangement (OPM) Secretary Ben Barnes released his latest revenue projections for the state of Connecticut.

The January 2017 projections have Connecticut collecting $17.89 billion in General Fund revenues in FY 2017. This is a $57 million improvement from OPM’s November projection of $17.40 billion in revenues.

Most of the strength comes from an increase in projected corporate tax revenue. January’s projection is for $919 million from corporate taxes, an $80 million improvement from the $839 million expected in November.

Expectations for revenue into the Special Transportation Fund eroded slightly, from $1.44 billion expected to $1.43 billion expected.

Barnes’ January projection has Connecticut losing revenue in FY 2018 (from $17.89 billion in FY 2017 to $17.68 billion), before picking up revenue in FY 2019 ($18.04 billion) and FY 2020 ($18.49 billion).

The new projections may make life a little easier for Gov. Dan Malloy (D-Conn.) and the legislature. It means the budget shortfall will be $57 million less than previously expected.