HARTFORD, CT - Governor Dannel P. Malloy on Tuesday announced that Connecticut ended Fiscal Year 2014 with an estimated $121.3 million dollar surplus, bringing the state’s Rainy Day Fund to a four-year high of $392 million. The figures, helped by reduced spending $154.8 million below budgeted levels, were reported in the monthly letter by Office of Policy and Management Secretary Ben Barnes to the State Comptroller.
State laws require that surpluses be deposited in the state’s Rainy Day Fund. This marks the third straight year that the state has made a deposit to the fund, which was depleted before Governor Malloy took office in 2011.
“While there is still much work to do, we are making progress in our effort to make state government more sustainable for the long term,” said Governor Malloy. “Depositing this surplus into the Rainy Day Fund, combined with our efforts to limit spending, are just a few of the ways that we are taking responsible steps to restore the fiscal health of our state.”
The letter notes that the previous estimate on June 20 was for a surplus of $33.2 million.
“While we aren’t yet where we want to be, this shows that Connecticut’s on the right path,” said Secretary Barnes. “Prudent fiscal policy under Governor Malloy – with average annual budget growth lower than those of his last two predecessors – means we are building reserves that are an important contingency against any future economic downturn.”