The state’s projected surplus for fiscal year 2012 is $83.7 million, up $4.6 million from last month, according to state officials.
However, Comptroller Kevin Lembo said the number carries several risk factors and a “significant shortfall” is possible in the employee health accounts.
“The good news is that Connecticut is currently headed for a fiscal year-end surplus – but the bad news is that there are several asterisks attached to that number,” Lembo said in a statement. “The health and pension savings associated with the 2011 SEBAC agreement must still be assessed.”
Lembo said he is “especially concerned that the aggressive allotment reduction applied to the retiree health account does not appear to be fully attainable,” and the state is waiting on findings related to estimated pension savings.
Sen. Rob Kane, (R- Watertown), the Ranking Republican on the Legislature's Appropriations Committee, said the projected surplus is not real.
"It’s based on unrealistic savings projections found in the deal with the state employee unions. For example, Gov. Malloy says we are going to save $180 million by creating a 'State Employee Suggestion Box,' even though that box doesn’t exist. But the largest tax increase in Connecticut history? Well, for Connecticut taxpayers, that most certainly was very real," Kane said in a statement.
Lembo said he hopes any shortfalls in SEBAC savings can be offset by other statewide savings.
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While General Fund spending is expected to end the year $14.4 million under budget, revenues are estimated to fall short of initial projections.
Lembo added that the projected surplus is largely accounted for.
“Connecticut’s economy continues to show slow and erratic growth,” Lembo said.
