Connecticut Resources

Connecticut’s coffers have swelled — not shrunk — during COVID

From CT Mirror.

State government’s coffers have swelled by hundreds of millions of dollars since the coronavirus struck in mid-March, despite warnings of a nearly $1 billion deficit just three months ago.

Connecticut’s rainy day fund, which stood at $2.5 billion when the pandemic struck, now approaches $2.8 billion, according to an ongoing review of thousands of state tax returns filed after July 15.

And while the legislature’s Office of Fiscal Analysis still expects Connecticut to exhaust most reserves over the next 11 months, they now project the state will maintain a modest, $250 million cushion one year from now.

That’s a far cry from two months ago, when Gov. Ned Lamont warned Connecticut might be broke by mid-2021 and potentially saddled with $500 million in operating debt. The governor hoped to avoid this debt by seeking concessions from labor unions, who declined, noting they provided givebacks in 2009, 2011 and 2017.

How has state government gotten richer since the pandemic began?

See the complete article from CT Mirror online.