Connecticut in the Red
Connecticut’s new governor, Ned Lamont, was elected on a promise to get the state’s finances in order. But as the new budget is finalized, a projected $1.55 billion deficit hangs over Nutmeg State taxpayers. Connecticut needs to get a handle on its ballooning pension obligations soon, because fiscal disaster is looming.
The Facts You Need to Know
Toll: A plan to toll Connecticut highways disguises a general revenue tax as a user fee, even though residents already pay some of the nation’s highest transportation-related taxes. Read more.
Shrink: Even as economies of neighboring states grew during the recent recovery, Connecticut’s shrank by 3%. Read more.
Broke: Connecticut’s five largest cities are saddled with tens of billions of dollars in unfunded pension obligations. Read more.
“One major problem is that state and local pension systems have kept taking on debt even during the recovery, forcing them to devote more of their budgets to retirement costs.”
The Past is Present
“Towns here do preserve their individual character, in large part because we lack anything like county government.”
And in other news...
“The union isn’t cowed by the MTA’s $467 million budget deficit next year, doubling two years after that even with congestion-pricing revenues.”