A new report from Fitch Ratings placed Connecticut second only to Illinois in the amount of state debt compared to personal income. The 2020 State Liability Report looked at direct debt and net pension liabilities as a percentage of personal income and found Connecticut’s debt accounted for roughly 26 percent ...
Study: Kids in Connecticut are Born Broke
Kids in Connecticut are born broke – more than $27,000 in debt – because of billions in unfunded pension promises. State estimates suggest citizens owe $25 billion, but this Yankee Institute study found the real number is more than three times higher, $76.8 billion.
The state owes another $22.7 billion to cover retiree healthcare costs. To pay for these promises, Connecticut needs a plan. One solution would require raising taxes by nearly $1,500 per family, which could severely damage the economy.
Instead, the study recommends adopting defined-contribution plans – much like a 401(k) – for new state workers as soon as possible.
Read a summary of the study here.
Study finds Connecticut government employees earn 28 percent more than private sector, costing taxpayers $3.7 billion
An updated study published by the Yankee Institute on Wednesday found that Connecticut government employees earn 28 percent more than comparable private sector employees, largely due to public employees’ generous retirement benefits. That difference adds up to a total of $3.7 billion in tax dollars across all state and local ...