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Drowning in debt, Connecticut faces budget crunch
Reuters ^ | August 23, 2017 | 7:28 AM | Hillary Russ

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 Malloy’s 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 Nappier’s office that has not yet been published. …

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; US: Connecticut
KEYWORDS: biggovernment; bluestates; budget; hightaxes; liberalagenda; malloy; medicaid; obamalegacy; pensions; regulations; statedebt; taxandspend; unionthugs; zerocare
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1 posted on 08/23/2017 5:59:04 PM PDT by Olog-hai
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To: Olog-hai

Raise taxes, duh.


2 posted on 08/23/2017 6:01:45 PM PDT by Extremely Extreme Extremist (We're right, you're wrong - that's the end of the argument.)
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To: Olog-hai

Unions and illegals burying the Nutmeg State.


3 posted on 08/23/2017 6:05:07 PM PDT by montag813 (ue)
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To: Olog-hai

Could pull a California and issue “Chit-mans” in lieu of cash/checks.


4 posted on 08/23/2017 6:05:29 PM PDT by RetiredTexasVet (Start using cash and checks or the elite class and bankers will make "cashless" the norm.)
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To: Extremely Extreme Extremist

Raise taxes on David Letterman.


5 posted on 08/23/2017 6:06:18 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ....)
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To: Olog-hai

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).


6 posted on 08/23/2017 6:08:11 PM PDT by SkyDancer (There Are Three Great Ways To Perfect Landings - Unfortunately We Pilots Don't Know Them.)
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To: Olog-hai

Another dimoKKKRAT paradise in the making.


7 posted on 08/23/2017 6:10:29 PM PDT by Parley Baer
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To: SaveFerris
Funny you should mention that. New Jersey found itself in a bizarre situation last year over something like this. The state relies so heavily on tax revenue from very wealthy taxpayers that the state legislature had to pass a mid-year adjustment to the state budget after one taxpayer moved out of the state. The guy's name is David Tepper, and he's a major hedge fund manager who moved to Florida where there is no income tax. I've seen estimates that for his last year in New Jersey he paid in excess of $100M in state income taxes alone.
8 posted on 08/23/2017 6:13:00 PM PDT by Alberta's Child ("I was elected to represent the citizens of Pittsburgh, not Paris." -- President Trump, 6/1/2017)
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To: Olog-hai

Let's look at how Connecticut is faring after tax increases in 2010, 2012, and 2016.

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 state’s closely watched top 100 earners, who are the source of an outsize proportion of the state’s revenue,” the WSJ reports.

9 posted on 08/23/2017 6:13:19 PM PDT by DoodleBob
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To: Olog-hai

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.


10 posted on 08/23/2017 6:14:20 PM PDT by LurkedLongEnough
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To: Olog-hai

I suggest that they push harder Left. Maybe it would help.


11 posted on 08/23/2017 6:14:30 PM PDT by ClearCase_guy (Islam: You have to just love a "religion" based on rape and sex slavery.)
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To: Alberta's Child

I imagine old Letterman boy would move real quick, too.


12 posted on 08/23/2017 6:15:46 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ....)
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To: Extremely Extreme Extremist

Yes. Raise taxes on everyone and everything in a section south of Torrington that begins with West Hartford, and everything west of Bridgeport.


13 posted on 08/23/2017 6:16:30 PM PDT by CTyank
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To: Olog-hai

Do an Illinois and issue higher interest bonds, increase spending, and increase taxes.

It always works.


14 posted on 08/23/2017 6:16:44 PM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: Extremely Extreme Extremist
Raise taxes, duh.

Yep. And more gun control. And no more gasoline or diesel vehicles. That ought to do it.

15 posted on 08/23/2017 6:19:56 PM PDT by Billthedrill
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To: Billthedrill

You guys left out bringing in 20,000 unvetted refugees from the Middle East.

Plus a special tariff on soda over 8 oz.


16 posted on 08/23/2017 6:23:00 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ....)
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To: Olog-hai

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.


17 posted on 08/23/2017 6:23:48 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
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To: Olog-hai

Never underestimate the sneakiness of Democrat politicians and government employees.


18 posted on 08/23/2017 6:26:25 PM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: Olog-hai

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.


19 posted on 08/23/2017 6:29:46 PM PDT by txrefugee (.)
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To: Olog-hai

They just need more diversity, send them some more illegal aliens, they seem to like them.


20 posted on 08/23/2017 6:30:42 PM PDT by Lurkinanloomin (Natural Born Citizen Means Born Here Of Citizen Parents - Know Islam, No Peace -No Islam, Know Peace)
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