Schools may be struggling, but the state budget picture is improving - what could that mean for your tax bill?

When COVID-19 first struck, Connecticut's fiscal health had a dire prognosis.

"The numbers are sobering," Gov. Ned Lamont previously said.

In April, Lamont projected a $2 billion budget hole. Now, the number is half that - thanks to a booming stock market and more families moving to Connecticut and paying taxes there.

In spite of the good news, Connecticut Democrats say it's too early to predict tax hikes.

"It's very premature for us to be talking about bad decisions we have to make. Toni is right, people are hurting in Connecticut. But there's also a booming stock market happening," State Rep. Sean Scanlon says.

But Republicans say the time to act is now.

"It's what Connecticut families do when they lose some money from a job. They don't say, 'Well we're going to wait six months to worry about that.' No, they roll up their sleeves, they sharpen their pencil, and they get right to work," State Sen. Kevin Kelly says.

Lamont tells News 12 he hopes President-Elect Joe Biden will send help from Washington.

"I think it's a bad idea. But look, I went and campaigned for scores of these people. I didn't hear anybody saying, 'Let's have a tax increase,'" Lamont said when asked about a tax hike for top earners.

Connecticut's fiscal health is improving, but taxing issues remain.