By Keith M. Phaneuf
www.ctmirror.orgConnecticut legislators are expected to have nearly $2 billion in additional revenue available to balance the next state budget, a bonanza not seen since before the last recession, according to a new report today from state analysts.
But to get at most of that windfall, about $1.5 billion tied to surging income tax receipts from investment earnings, lawmakers must suspend or otherwise get around the new “volatility cap” they created to force better savings habits.
The consensus report from the legislature’s nonpartisan Office of Fiscal Analysis and from Gov. Dannel P. Malloy’s budget staff concluded General Fund revenues this fiscal year will top $19.34 billion. But that number includes almost $1.3 billion in unanticipated income tax receipts tied chiefly to capital gains and other investment earnings — a bonus that must be deposited into the emergency reserve, commonly known as the Rainy Day Fund.
“Today’s consensus revenue report is unquestionably good news — it is a milestone we should all recognize and appreciate,” Malloy said, adding Connecticut has overcome a depleted reserve and a major operating debt left over from the last recession.