In the face of mounting deficits after years of unsustainable policy, Democratic Party leaders appear to have made a shift, albeit one that has turned their most ardent supporters into some of their harshest critics. “Hopefully the governor won’t do any more layoffs,” one member said. “Stop building so much stuff,” he added. “They’re spending money. They’re renovating things. They have to stop spending money that way - foolishly.”
While we in Connecticut may have become numb to our last place finishes on state rankings, the latest study shows just how unprepared the state would be if it were hit by another economic downturn or some other crisis. The study, published by the Mercatus Center at George Mason University, ranks Connecticut in last place out of the 50 states for “fiscal condition.” The rankings for this study take into account things like how much debt the states carry, whether they have a decent rainy day fund, and whether or not they can pay their bills in the short- and long-term.
State employees who teach at Connecticut's colleges and universities won a unique opportunity in 2010: a partial escape from the effects of the Great Recession. The SEBAC ARP Grievance agreement specified that this was a one-time opportunity. However, Connecticut professors are still allowed to switch from the ARP to the state’s pension system because the IRS has not yet ruled the SAG award.
When people think of a major city declaring bankruptcy the city of Detroit often comes to mind with its sky-high crime rates and areas of urban wasteland. But as more and more cities like Hartford find themselves in impossible financial situations, sometimes filing for Chapter 9 can actually be the best alternative. If the city could prove it was insolvent, what would a Hartford bankruptcy look like?
At the Department of Transportation’s training facility in Newington massive sheets of paper are taped to the walls and lined with blue painter’s tape and dotted with multi-colored post-it notes and cut-out paper stars. In the room are perhaps ten employees with the Office of Early Childhood Development. There is a table with snacks of Goldfish crackers and bottled water. This is a Kaizen training session. Part of Connecticut’s LeanCT program aimed at making government more efficient.
This year we’ve tried to shine a light on Connecticut’s bonded debt, as well as our pension and retiree healthcare liabilities. When all of this debt is combined, Connecticut is one of the most indebted states in the nation. A new report by J.P. Morgan’s Michael Cembalest provides additional clarity.