It could be called the lull before next year's budget storm.
The state Tuesday projected a budget surplus for the current fiscal year at $57 million. State officials have been constantly talking about deficits, but that refers to projections for the next fiscal year that begins in July.
The current year's outlook is much better, according to the new state comptroller, Kevin Lembo.
The state had been projecting a break-even budget, but officials began collecting more money than expected from the state income tax and inheritance tax, among others. Even with the increase, the state income tax is generating about $600 million less than three years ago, according to Lembo.
One of the chief reasons for the state's economic uncertainty is that the unemployment rate is still at 9 percent. With fewer Connecticut residents earning a paycheck, fewer are paying state income taxes - thus leading to the projected deficit.
Connecticut's surplus is partly attributable to using money from the state's rainy day fund for fiscal emergencies and the federal stimulus funding. The deficit is projected for next year because those two huges sources of money will have dried up.
"Connecticut continues to battle with historic and unshakable unemployment - our greatest obstacle to financial recovery," Lembo said in a statement. "Today's unfortunate news from Pfizer - that it will eliminate more than 1,000 Connecticut jobs - reinforces the need to make job restoration priority one. Employment growth is key in diminishing state spending on social services, and propelling state revenue.''
Lembo, who just started his job in January, is looking for cost savings.