Despite fears about future deficits, a sluggish economy, and a high unemployment rate, the state finished its most recent fiscal year with a surplus of nearly $450 million.
The official numbers were released Wednesday by state Comptroller Nancy Wyman for the fiscal year that ended on June 30. The surplus was possible because the state legislature used money from the state's "rainy day'' fund for fiscal emergencies, along with federal stimulus money.
The official surplus was $449.4 million - a number that some state officials thought was unlikely after the Wall Street collapse that was precipitated by the bankruptcy of the Lehman Brothers investment bank in September 2008.
"State government was fortunate to have these one-time funds available to help weather the economic downturn, but there was little other positive news in a very difficult year for our state and our taxpayers," Wyman said in a statement.
The state's budget was balanced through the use of nearly $1 billion in stimulus funds, as well as rainy day funds and the delayed payment of $100 million into the state pension fund. The payment delay will not change the level of pension for any state employee. It will simply extend the time for the payment into the fund.
Overall, the tax collections in the state's general fund grew by 1.7 percent for the fiscal year, which Wyman described as "well below the typical historical growth rate of about 5 percent and about $33 million short of budget expectations.''
The spending in the 2010 fiscal year was 0.2 percent below the level of the 2009 fiscal year - a feat that is rarely accomplished in state government.
Connecticut lost more than 100,000 jobs since the state's recession started in March 2008, but the economy is now stronger than it was during the depths of a deep recession.
"While we all hope that this positive trend in jobs and revenue continues, it is still far too early to call this a solid recovery," Wyman said.