GOV. RELL ANNOUNCES STATE BUDGET SURPLUS RISES BY $92 MILLION

 Gov. M. Jodi Rell, R-Conn., issued the following press release:

Gov. M. Jodi Rell today announced that the state budget surplus now stands at approximately $628.3 million, up about $92 million from last month's estimate. Additional revenue from the corporation tax was the primary driver of the increase in the surplus.

"The increase in the surplus is more good economic news and it comes on the heels of Department of Labor reports indicating that strong job growth in Connecticut has continued for five straight months," Governor Rell said. "Connecticut gained 1,500 jobs in March and the state just completed one of our strongest quarters for job growth."

The Governor noted that as of March, the state was just 8,000 jobs short of its all-time high of 1,700,700 reached in July 2000. With the 1,500 jobs gained in March, Connecticut's unemployment rate fell to 4.1 percent, down from 4.2 percent in February.

"Job creation has been one of my top priorities and our efforts to attract new business to our state and to expand those already operating here are paying dividends," the Governor said. "We must continue to be aggressive in our efforts to help new businesses locate in Connecticut and to help our existing companies grow jobs."

"While the surplus and jobs numbers are encouraging, we must continue to ensure that we move in the right direction. The Democrats' recent bond proposal includes deep cuts to my recommendations for Manufacturing Assistance funding - the same funding that is largely responsible for the jobs growth we are currently enjoying."

"It is also important to remember that a rising surplus is not a license to spend. These are one-time revenues that should either be saved or used for one-time purposes. I would prefer to see them deposited in the Rainy Day Fund."

Contact: Adam Liegeot, 860/524-7313, Adam.Liegeot@ct.gov.