Connecticut Budget Forecast Points to More Fiscal Stability

By Joe O’Leary

November 22 @ 9:00 am

Connecticut’s latest consensus revenue report suggests the state will remain in a strong financial position in the coming years, bolstered by steady projected tax revenues and recent work to build confidence in the budget’s long-term outlook.

On Nov. 12, the Office of Policy and Management and the Office of Fiscal Analysis released the report, which indicates that state tax revenue is expected to total $21.09 billion in fiscal year 2025 before climbing more than $500 million to $23 billion in FY 2028.

Gov. Ned Lamont and Office of Policy and Management Secretary Jeffrey Beckham issued statements in response to the report, with both saying the figures were evidence that Connecticut’s economy was moving in the right direction.

“The work to make our state a more affordable and equitable place to live and work continues, and as we approach the next legislative session that will be a key focus of our efforts,” Lamont said, adding that he’s remaining mindful of kitchen table economics in Connecticut homes and wants to aid families throughout the state.

“Our revenues remain strong in virtually every area, reflecting that Connecticut’s economy is growing, thanks to low levels of unemployment and businesses moving and expanding across our state,” said Beckham. “The challenge we face is sustaining this momentum with significant national and global uncertainty.” Beckham added that the governor’s office was laser-focused on the needs of state families and businesses, looking to the future.

These steps promise to further strengthen Connecticut, which has in recent years raised the minimum wage, created a paid family and medical leave program, delivered tax cuts for hundreds of thousands of households, supported child tax cuts, developed a debt-free community college program and more – while contributing $8 billion toward paying down outstanding debt.