Skip to comments.Drowning in debt, Connecticut faces budget crunch
Posted on 08/23/2017 5:59:04 PM PDT by Olog-hai
Connecticut, home to hedge fund billionaires alongside cities mired in poverty, is racing against the clock to pass a budget or face further spending cuts to education and municipal aid across the state.
Nearly two months without a budget, Connecticut is getting crushed by a burdensome debt load that has squeezed spending and amplified legislative discord.
State lawmakers must agree on a biennial budget soon or else Governor Dannel Malloys executive order to slash state aid to municipalities and eliminate school funding for some districts will go into effect in October. The state faces a $3.5 billion deficit over the next two years.
Among the wealthiest in the United States, Connecticut has been strained by already high taxes, outmigration, falling revenues and $50 billion of unfunded pension liabilities.
Some $23 billion of outstanding municipal debt has also constrained spending. Bondholders must be paid ahead of most other expenses like non-essential services and payments to vendors.
The $2.85 billion of principal and interest the state paid on its bonds in fiscal 2017 was the highest in six years, according to preliminary unaudited information from State Treasurer Denise Nappiers office that has not yet been published.
(Excerpt) Read more at reuters.com ...
Raise taxes, duh.
Unions and illegals burying the Nutmeg State.
Could pull a California and issue “Chit-mans” in lieu of cash/checks.
Raise taxes on David Letterman.
It’s always education, police, fire, emergency services that are always cut first right after politicians give themselves a raise after new taxes to balance the budget (read: pensions, medical for politicians, etc etc).
Another dimoKKKRAT paradise in the making.
Several thousand tax filers in the state have adjusted gross incomes of more than $1 million a year, and they account for about a third of all income tax receipts.
About $200 million of the drop in receipts came from the states closely watched top 100 earners, who are the source of an outsize proportion of the states revenue, the WSJ reports.
And to think that Malloy was touted by Obama as a paragon of state administration!
Connecticut is beautiful but its very high taxes, casinos, voter fraud, rampant unemployment, sanctuary cities and strict gun laws are having their effect: bankrupt on all fronts.
I suggest that they push harder Left. Maybe it would help.
I imagine old Letterman boy would move real quick, too.
Yes. Raise taxes on everyone and everything in a section south of Torrington that begins with West Hartford, and everything west of Bridgeport.
Do an Illinois and issue higher interest bonds, increase spending, and increase taxes.
It always works.
Yep. And more gun control. And no more gasoline or diesel vehicles. That ought to do it.
You guys left out bringing in 20,000 unvetted refugees from the Middle East.
Plus a special tariff on soda over 8 oz.
CT was counting on a Hilmama bailout. Oh well.
Democrats have run the state for decades and can’t manage a balanced budget.
Just raise the income tax! Lowell Weicker forced it on the state.
Never underestimate the sneakiness of Democrat politicians and government employees.
All these financial institutions in CT should have told the Democrat politicians that if you spent much more than you take in, you will go broke. They were probably counting on a bailout from Hillary to save them. Wrong.
They just need more diversity, send them some more illegal aliens, they seem to like them.