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Lembo: Surplus is $9 Million, Not $23 Million

February 2, 2017 By Staff
Lembo: Surplus is $9 Million, Not $23 Million

Comptroller Kevin Lembo (D-Conn.) warned on Wednesday that the state's FY 2017 surplus is smaller than the governor's budget office reports it is.

On Wednesday, Comptroller Kevin Lembo (D-Conn.) estimated Connecticut’s rare surplus – reported at $23.3 million by the governor’s budget office – is actually only $8.7 million.

More from CT News Junkie:

Lembo said his estimate is lower than the governor’s budget office “due to a variance in estimated claims expenditures in the adjudicated claims account related to settlement payments in the SEBAC v. Rowland case.”

…“A surplus projection is always good news, though it comes with caution – both for the short and long-term outlook – because it is largely driven by one-time revenue windfalls from legal settlements and possibly optimistic views about final income tax payments,” Lembo said.

Lembo’s warnings mirror reporting by Reclaim Connecticut last week. We reported on the $23.3 million surplus estimate from the office of Gov. Dan Malloy (D-Conn.), but noted that it relies in part on $172 million in one-time revenue.

This year’s surplus, of course, is dwarfed by the $1.5 billion deficit ahead for fiscal year (FY) 2018. That deficit will be the focus of the legislature in the months ahead.