The state's latest financial projections are calling for an increase in Connecticut's budget surplus as the economy shows signs of improvement.

Comptroller Kevin Lembo says the projected surplus for fiscal year 2012 is $83.7 million, which is up $4.6 million from a report last month.

He said in a letter to Gov. Dannel P. Malloy that the state economy continues to show "slow and erratic growth."

Lembo said Tuesday that the state has yet to tally the total savings from an agreement with state employees to help close a budget gap. But he said he's optimistic any shortfalls from that agreement can be offset by other statewide savings.

But Republican Sen. Rob Kane maintains the projected surplus is not real because it's based on unrealistic savings from the labor deal.