State Surplus Expected To Hit $530 Million

HARTFORD (AP)  — Gov John G. Rowland on Monday gave a breakdown of how a state law will split up a predicted $530 million surplus.

About $316 million will pay for school construction projects. Another $53 million will be to wire school systems, invest in open space, and update the state’s financial systems.

About $34 million will be put into the state’s Rainy Day Fund to keep it at 5 percent of the budget, and another $34 million will be divvied up for one-time municipal revenue sharing.

The surplus also will help bail out the cash-strapped University of Connecticut Health Center, which needs $20 million to cover operating losses.

“One-time funding and debt avoidance are prudent uses of the surplus because they will help keep future budgets lower,” Gov Rowland said. “This proposal recognizes that excessive spending commitments in good fiscal times create an appetite that cannot be met when times get tight. That’s why none of the surplus spending represents ongoing program expenditures.”