A new study by Yankee Institute and Reason Foundation, a national public policy research organization, confirms that the 2017 bipartisan financial reforms known as the “fiscal guardrails” have saved Connecticut more than $170 million since enacted and, if kept intact, can save the state $7 billion over the next 25 years.
The report, titled The Case for CT’s Fiscal Guardrails: How to Protect Public Pensions and Taxpayers, examines how the guardrails have improved Connecticut’s creditworthiness, making it less expensive for the state to borrow money to finance necessary projects. What’s more, the guardrails have reversed decades of pension underfunding, reducing the risk that Connecticut’s people will face tax increases to make the pensions’ minimum liability payments during a recession.
The study also includes the interactive Reason Foundation-Yankee Institute CT Pensions Dashboard, capable of exploring a wide range of economic scenarios related to reducing pension debt, available at ct-pensions.reason.org. The study and dashboard are built upon dual pension models of the State Employee Retirement System (SERS) and the State Teacher Retirement System (STRS) that accounts for the assumed rates of investment returns, payroll growth rates, cost-of-living adjustment provisions, mortality assumptions, among dozens of other variables.
Download the Full Report Here.
TO READ THE FULL REPORT:
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