Connecticut’s government spending outpaced the state's gross domestic product by a wide margin since 1990, according to a review of past figures compiled at U.S. Government Spending, an online database of state and federal spending.
There are only a few states that generally rank lower than Connecticut in terms of fiscal stability and outlook and New Jersey is usually one of them. Like Connecticut, New Jersey is saddled with high taxes, major pension problems and fiscal mismanagement, but a new study released by the Garden State Initiative uses Connecticut’s history of raising taxes to solve those problems as a “cautionary tale."
State employee unions threaten legal action against future benefit reforms as budget negotiations continue
Connecticut state employee unions threatened a lawsuit against the state if future reforms to state employee benefits are included in a bipartisan budget.
While state employees were given a 4-year no layoff guarantee through the union concessions deal, municipalities will have few options but to layoff teachers, staff and municipal employees. Following the governor’s veto of the bipartisan budget passed in September, those layoffs are happening, pitting the interests of state teachers’ unions against those of the state employee unions
Connecticut would have to pay 35 percent of its tax revenue over 30 years in order to meet all its pension and retiree healthcare liabilities, according to a report by financial powerhouse JP Morgan. In their ARC of the Covenants 2.0 report, which examines credit risk for municipal bond holders, JP Morgan listed Connecticut as one of four states including New Jersey, Illinois and Kentucky, as having the highest retirement liabilities.
On Sunday more than 150 parents, children and education advocates gathered in Middletown for the annual March for Education, meant to celebrate education and learning in Connecticut. The march occurred on the same day Gov. Dannel Malloy's executive order took effect, zeroing out education funding for 85 towns across Connecticut.