Welcome to June, Pulse Readers!

As we enter the final month of Fiscal Year 2026, Connecticut is on track for its 8th consecutive surplus. People would’ve called that impossible a decade ago, and it’s something we should all be proud of.

We’re continuing to see the benefits of responsible fiscal management. Moving forward, we’ve got to keep tackling the obstacles the federal government throws our way, investing in our kids, paying down our debts, and working to bring costs down across the board.

Check out the full Economic Update for the run-down on consequential legislation, the latest on SNAP and Medicaid changes, and more.

Stay sharp, stay informed, and keep your finger on the pulse,

Comptroller Sean Scanlon

Quick Beat

General Fund Surplus:

$322.8 million

Special Transportation Fund Surplus:

$20.3 million

Connecticut added a solid 5,700 payroll jobs in April, a sign that despite rising unemployment, organizations are still hiring. However, consumers are feeling the squeeze as inflation outpaces wage growth, though continuing business investment in AI and mostly resilient consumer spending through April is supporting moderate U.S. economic growth (1.6% real GDP growth SAAR in 2026 Q1).

Higher diesel prices are hitting Connecticut small businesses hard. Energy prices remain elevated with the Strait of Hormuz effectively closed, and forecasters from EY Parthenon predict the personal consumer expenditures (PCE) price index will peak around 4.0% YoY in 2026.

Higher inflation is offsetting wage gains. The U.S. all-items Consumer Price Index rose 3.8% in the 12 months through April, up from 3.3% in March and 2.4% in February.  Connecticut private sector average hourly wages rose only 3.0% over the same period, meaning workers’ real hourly wages are now declining.
KEY DATES THIS MONTH

 

6/5 – May U.S. jobs report

6/10 –May CPI inflation report

6/22 –May CT jobs report

6/25 – Q1 2026 GDP CT & U.S. 3rd estimate: May U.S. personal income & outlays
This month’s Update highlights economically-consequential legislation from the recently-concluded state session, including on artificial intelligence, the hospital tax deal brokered, assistance for post-secondary students impacted by federal changes, and more.
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See what events the Office of the State Comptroller is watching for fiscal impacts, such as the new Federal Reserve Chair Kevin Warsh, the ongoing conflict in Iran, and federal housing legislation.
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OBBBA is estimated to cut over $1 trillion in federal spending from SNAP and Medicaid over 10 years and adds new costs and requirements for states. Learn more about the system changes and rollout coming later this year.
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The main spring homebuying season has seen more muted activity than was hoped for at the start of the year. Rising mortgage rates and war-related inflation and uncertainty are partly to blame.
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The Office of the State Comptroller | 165 Capitol Ave | Hartford, CT 06106