(CBS Connecticut) — The governor’s office today announced that the state is collecting $900-million more than expected, in December and January. The governor says it is promising news for the state.
But Dannel Malloy’s office also says some of the additional money could be the result of taxpayers moving up payments, to make them before the end of the year.
They could be doing that to take advantage of tax breaks that will go away under the Republican tax plan approved by Congress and the president.
In other words, some of this may be money that the state would have received a few months later anyway.
Some of the money may also be the result of one-time payments based on repatriation of foreign profits, ahead of a federal deadline at the end of 2017.
State officials did not know for certain how much of the money was payments moved up a few months, and how much of it was a one-time windfall.
Under state law, some of the unexpected money will be diverted to the state’s rainy day fund, to be saved for the future.