OFFICE OF FISCAL ANALYSIS

Room 5200, Legislative Office Building

Hartford, CT 06106 – (860) 240-0200
E-Mail: [email protected]
www.cga.ct.gov/ofa

State Budget Projections

June 27, 2011

We are currently projecting a $129.7 million surplus in the General Fund. 1 This
reflects a decrease from our May 2011 report, which projected a $656.1 million
surplus. Estimated expenditure requirements have decreased by $49.8 million
and estimated revenues have decreased by $576.2 million for a decrease in the
estimated surplus of $526.4 million.

The decrease in projected expenditures from May is due primarily to a

reduction in the Reserve for Salary Adjustments line item of approximately
$23.4 million.

The decrease in revenue since May is attributable primarily to the elimination

of the Economic Recovery Revenue Bonds (ERRBs). Public Act 11-61 eliminates
the issuance of ERRBs, which will result in a General Fund revenue loss of
$646.6 million in FY 11. The ERRBs were authorized by Public Act 10-179 and
backed by a portion of the revenue from charges currently imposed on electric
company bills 2 . The revenue from the bonds is no longer needed to balance the
FY 11 General Fund budget due to better than anticipated revenue collections.
This revenue loss is partially offset by an increase in estimated Personal Income
Tax revenue of $40.0 million.

Public Act 11-61 increases FY 11 Net General Fund appropriations by $329.2

million to account for deficiencies within various agencies. The increase in
appropriations to the General Fund of $355.2 million is offset by a reduction of
$26 million.

1
Note that $14.5 million of the estimated surplus is required to be transferred to the Other Post-Employment Benefits trust
fund in accordance with the 2009 SEBAC Agreement.
2
The revenue stream to pay off the ERRBs would have come from: (1) the Competitive Transition Charges (CTA) on
Connecticut Light and Power (CL&P) and United Illuminating (UI) rate payers and (2) the Energy Conservation and Load
Management Fund.
1
 FY 11 General Fund Overview ($ - millions)
May 25 Current Diff. from Diff. from
Budget Projection Projection May 25 Budget
Est. Expenditures 17,667.2 17,940.3 17,890.5 (49.8) 223.3
Est. Revenue 17,667.4 18,596.4 18,020.2 (576.2) 352.8
Est. (Deficit) / Surplus 0.2 656.1 129.7 (526.4) 129.5
% of Est. Expenditures 0.00% 3.66% 0.72%

FY 11 General Fund Details ($ - millions)

May 25 Current Diff. from Diff. from
Budget Projection Projection May 25 Budget
Expenditures
Agency Appropriations 17,963.5 17,963.5 17,963.5 - -
Deficiency Requirements - 290.6 329.2 38.6 329.2
Lapses (296.3) (372.6) (458.0) (85.4) (161.7)
Adjudicated Claims /
Refunds of Escheats - 58.9 55.8 (3.1) 55.8
Total Expenditures 17,667.2 17,940.3 17,890.5 (49.8) 223.3

Revenues
Taxes
Personal Income 6,682.5 7,170.0 7,210.0 40.0 527.5
Sales and Use 3,164.9 3,342.0 3,342.0 - 177.1
Corporations 662.9 770.4 780.7 10.3 117.8
Other 1,431.2 1,568.5 1,582.0 13.5 150.8
Refunds / R&D Credit
Exchange (1,019.8) (968.5) (968.7) (0.2) 51.1
Subtotal: Taxes 10,921.7 11,882.4 11,946.0 63.6 1,024.3
Other Revenue 1,202.7 1,269.1 1,275.4 6.3 72.7
Other Sources
Federal Grants 4,256.0 4,204.8 4,204.8 - (51.2)
Other 1,287.0 1,240.1 594.0 (646.1) (693.0)
Subtotal: Other Sources 5,543.0 5,444.9 4,798.8 (646.1) (744.2)
Total Revenues 17,667.4 18,596.4 18,020.2 (576.2) 352.8

Operating Surplus /
(Deficit) 0.2 656.1 129.7 (526.4) 129.5
Note that figures may not sum to total due to rounding.

2
 FY 11 State Agency or Account Lapses/(Deficiencies)
Adjusted Approp OFA Est.
Agency [1] Expenditures Balance [2]
Refunds of Escheated Property - 51,500,000 (51,500,000)
Adjudicated Claims - 4,337,000 (4,337,000)
Miscellaneous Appropriation to the Governor 1 1 -
State Comptroller - Miscellaneous 189,426,409 189,426,409 -
State Department on Aging 2 2 -
Board of Firearms Permit Examiners 82,508 80,278 2,230

Judicial Selection Commission 87,133 83,886 3,247

Charter Oak State College 2,897,633 2,893,267 4,366
African-American Affairs Commission 212,236 206,344 5,892
Latino and Puerto Rican Affairs Commission 319,791 313,212 6,579
Commission on Aging 256,071 249,088 6,983
Teachers' Retirement Board 584,093,635 584,086,628 7,007
Council on Environmental Quality 163,710 155,496 8,214
Contracting Standards Board 10,001 1 10,000
Office of Protection and Advocacy for Persons with 2,669,178 2,658,839 10,339
Disabilities
Psychiatric Security Review Board 355,205 342,833 12,372
Judicial Review Council 148,530 134,068 14,462
Asian Pacific American Affairs Commission 52,310 36,562 15,748
Lieutenant Governor's Office 553,867 534,612 19,255
Child Protection Commission 13,868,166 13,843,956 24,210
Office of the Victim Advocate 328,515 303,743 24,772
Department of Agriculture 4,742,556 4,712,268 30,288
Board of Accountancy 383,688 330,738 52,950
Permanent Commission on the Status of Women 505,420 452,263 53,157
Office of the Child Advocate 833,887 722,771 111,116
Labor Department 61,499,335 61,385,245 114,090
University of Connecticut Health Center 119,346,347 119,166,814 179,533
Commission on Children 530,420 341,631 188,789
Office of State Ethics 1,903,308 1,687,755 215,553
Office of Financial and Academic Affairs for Higher 70,248,327 70,018,355 229,972
Education
Commission on the Deaf and Hearing Impaired 924,382 688,937 235,445
Regional Community - Technical Colleges 158,523,261 158,282,029 241,232
Connecticut State University 162,517,232 162,271,103 246,129
Governor's Office 2,760,631 2,506,092 254,539
Public Defender Services Commission 50,013,243 49,718,617 294,626
Workers' Compensation Claims - Department of 26,506,154 26,206,154 300,000
Administrative Services
Commission on Fire Prevention and Control 3,564,721 3,247,405 317,316
Office of the Chief Medical Examiner 5,650,427 5,330,752 319,675
Agricultural Experiment Station 6,991,173 6,671,016 320,157
University of Connecticut 233,011,263 232,655,600 355,663
Police Officer Standards and Training Council 2,687,808 2,327,620 360,188
Board of Education and Services for the Blind 11,607,026 11,221,844 385,182
Freedom of Information Commission 2,306,883 1,897,863 409,020

3
 FY 11 State Agency or Account Lapses/(Deficiencies)
Adjusted Approp OFA Est.
Agency [1] Expenditures Balance [2]
Office of Workforce Competitiveness 2,687,472 2,028,261 659,211
Commission on Culture and Tourism 16,690,361 16,031,150 659,211
Department of Emergency Management and Homeland 3,784,522 3,099,705 684,817
Security
Elections Enforcement Commission 5,016,952 4,303,871 713,081
State Treasurer 3,991,071 3,253,110 737,961
Commission on Human Rights and Opportunities 6,378,778 5,624,878 753,900
Military Department 6,549,083 5,763,955 785,128
Secretary of the State 8,000,085 7,169,741 830,344
Department of Consumer Protection 10,998,752 10,098,968 899,784
State Library 12,184,654 10,976,781 1,207,873
Attorney General 29,122,914 27,862,036 1,260,878
Division of Criminal Justice 49,775,671 48,509,088 1,266,583
Division of Special Revenue 5,230,374 3,883,096 1,347,278
State Comptroller 26,022,999 24,365,162 1,657,837
Department of Economic and Community Development 26,897,399 24,942,913 1,954,486
Department of Veterans' Affairs 31,150,039 28,475,627 2,674,412
Auditors of Public Accounts 13,426,371 10,709,861 2,716,510
Department of Information Technology 42,993,149 40,043,679 2,949,470
Regional Vocational-Technical School System 139,103,088 136,024,713 3,078,375
Department of Energy and Environmental Protection 77,270,129 73,557,302 3,712,827
Office of Policy and Management 129,780,924 126,043,582 3,737,342
Department of Administrative Services 41,860,344 38,037,440 3,822,904
Department of Revenue Services 66,856,005 62,876,741 3,979,264
Department of Public Health 87,587,487 82,534,397 5,053,090
Judicial Department 502,551,893 495,108,618 7,443,275
Department of Public Works 61,628,585 52,544,677 9,083,908
Legislative Management 65,141,752 54,820,061 10,321,691
Department of Emergency Services and Public Protection 172,974,985 162,137,437 10,837,548
Department of Correction 690,384,838 677,315,002 13,069,836
Department of Education 2,586,293,790 2,572,507,476 13,786,314
Department of Social Services 5,437,991,338 5,417,950,622 20,040,716
Department of Mental Health and Addiction Services 688,856,269 665,761,485 23,094,784
Department of Developmental Services 1,004,762,407 970,230,635 34,531,772
Department of Children and Families 850,224,859 815,474,305 34,750,554
Debt Service - State Treasurer 1,672,693,240 1,624,608,050 48,085,190
Reserve for Salary Adjustments 60,661,517 - 60,661,517
State Comptroller - Fringe Benefits 1,932,602,747 1,812,802,747 119,800,000
Totals 18,292,709,236 17,890,506,269 402,202,967

Summary
General Fund Gross Appropriation 17,963,514,236 17,963,514,236 -
Budgeted Lapses (296,344,077) (458,039,967) 161,695,890
Refunds of Escheats and Adjudicated Claims - 55,837,000 (55,837,000)
Deficiency Appropriations 329,195,000 329,195,000 -
General Fund Net Appropriation 17,996,365,159 17,890,506,269 105,858,890

[1] The appropriation listed above for each agency: (a) excludes budgeted lapses; and (b) includes any actual or anticipated
transfers from OPM's Reserve for Salary Adjustments line item to cover the costs of collective bargaining agreements that were
not otherwise provided in the agencies' budgets.
[2] Estimated balance of current year appropriations: excludes carry forwards.