The Department of Housing paid exorbitant fees to a lender administrating the Shoreline Resiliency Loan Fund, part of Gov. Dannel Malloy’s Shore Up CT program created in 2014 to give homeowners and businesses low interest loans to upgrade their properties to withstand coastal storms in the wake of Superstorm Sandy. ...
Unfunded Liabilities Worse Than Forecast
Connecticut’s pension system serving 175,000 active and retired state employees, teachers, and those in the judicial system reports an unfunded liability approaching $16 billion – an amount nearly equal to the state’s entire annual budget. Yankee’s analysis concludes the real unfunded liability is between $51 billion and $81 billion – or at least three times as much. Yankee believes the state has counted on unrealistic assumptions about discount rates and rates of return in underestimating the real magnitude of the problem. Yankee concludes that Connecticut should move swiftly from a defined benefit to a defined contribution pension plan for government workers as part of getting retiree liabilities under control, or else the state will face yet more pressure for yet higher taxes.
“Benefit reform and modernization needs to be a topic of discussion for state level candidates of all parties in this year’s elections,” said Fergus Cullen, Executive Director of the Yankee Institute, the free-market think tank that published the study. “We hope our report will serve as a primer for that discussion,” Cullen said.
The full report, “Ignoring It Won’t Make it Go Away: Connecticut’s $51 Billion Unfunded Retiree Liability” is posted at yankeeinstitute.org
State Troopers doubling pay with overtime due to staffing shortage, as state braces for mass retirements
An audit of the Department of Emergency Services and Public Protection found that 56 percent of state troopers singled out for review earned more than 100 percent of their base salary through overtime. “These employees’ base salaries ranged from $44,129 to $83,137, while overtime ranged from $50,968 to $190,677,” the ...