Debt burden. It’s something Bridgeport resident David Walker, the former U.S. Comptroller General, has railed against locally and nationally. He has often cited Connecticut’s burdensome debt ratio as well. The more governments borrow the more it costs taxpayers, as cited in a new analysis.
CT Mirror reporter Keith Phaneuf has more:
Long recognized as one of the most indebted of states, Connecticut’s chief offset against that burden was its tremendous wealth.
But even weighed against personal income, what Connecticut owes to its bondholders and retired public-sector workers ranks as fifth-worst among the states, according to a new analysis by The Pew Charitable Trusts.
The report also found Connecticut followed a national trend between 2003 and 2013 as its pension debt worsened faster than any other long-term obligation, reaching its highest point in a decade.
“Although a number of states have taken steps in recent years to shore up their pension savings or cut costs by modifying benefits–mostly for new workers–unfunded pension liabilities have grown more than debt or unfunded retiree health care costs,” Pew researchers wrote.
The pension crisis is driven by a combination of factors, they added, including lower-than-expected investment returns and historic under-funding issues.
And while the report only uses data through 2013, it notes that strong investment earnings for many states in 2014 “may have been undercut by weak investment returns” in 2015 and 2016.
Full story here.
Why is it David Walker’s Republican candidate for President, Donald Trump, does not believe in his financial plan and neither does their platform? In fact Trump said he will not cut Social Security, Medicare and Medicaid.
Ron, keep in mind underfunding of non-sustainable government employee pensions and post-retirement medical benefits is very different from funding of social security, medicare and medicaid. Social security and medicare were created by acts of congress. Government employee pensions and other benefits are products of union contracts that can be challenged in court.
My point is spending money that’s not there and I don’t see the Republican Party at any level doing what Dave Walker is suggesting. When George W Bush 43 President during his eight years never vetoed a single spending bill, not one and he gave large tax cuts to the rich. America didn’t have that money to cover those costs and debt grew and there was no outcry about it.
Mr. Walker’s concerns need to be addressed to his Republican Party on all government levels, his writings, his 60 Minutes appearance and now their candidate to be President.
Sure, the state has plenty of rich people but what it does not have is corporate taxpayers. These spendthrifts in Hartford keep spending without worrying where the money is coming from. We should fire the state’s economic director and when he is up for reelection get rid of Malloy.
When are these people going to realize we need money and right now the only way is to put TOLLS on all the major highways entering the state. We are one of the few states on the east coast without tolls. Those people in lower Fairfield county will cry about tolls in CT but happily pay $11 or more to cross a bridge in New York.
The average Connecticut resident will not be hurt by reintroducing a toll at the borders. The residents of Connecticut who travel to New York or New Jersey have a total of 57 tolls they may have to pay and there are 32 states that have tolls as well. Its time has come as Andy has suggested.
Yes they will. The toll on trucks is transferred to the goods they carry, then to the consumer. People who work far away will have less buying power. This will affect local business.
Regardless of where the money comes from it is not the answer. Being broke is more a function of spending than income. Remember when the income tax was going to save us? Now that tax revenue is higher than ever and so is our debt. Borrowing power being a function of tax income, the more you collect the more you can borrow.
Look, they will spend as much as they can and then some. Every problem creates a need and every need is a priority. You want to fix the debt problem, limit the income. Then learn to live within your means. Even our state and federal, constitutionally mandated, spending/borrowing limits only gave birth to the emergency spending bill. Politicians never say ‘no’ to someone who can vote, regardless of how much tax money that vote costs. After all, it is not their money.
Okay. SO WHAT ARE THE ANSWERS???
How much does the State lose from the federal government if they bring back tolls?
Not much. The Feds require the money collected for tolls be used only for highway improvements. If the money is used for anything else the state would have to pay an offset.
*** BORROW AND SPEND MORE, ONLY TO RAISE STATE TAXES AND PUSH MORE BUSINESS AND MIDDLE CLASS WORKERS OUT OF CT. *** WESTBOUND FOLKS! ***
No news here. Pew is a lag indicator on this issue but I respect them and am glad they issued this report. CAI, which I founded and headed, issued a comprehensive Connecticut report with a “way forward” in 2013. PwC issued a 50-state report in 12/15 that reinforced Connecticut’s poor position. State leaders are still out of touch and out of control. It’s time to get to work in Hartford and Bridgeport.
Why is Connecticut in so much debt? They spend more than they take in.
Dan Malloy is the worst Governor in the United States. By far, possibly in the history of the US.