Wanna sobering appraisal of the broken state budget? Go to CT Mirror reporter Keith Phaneuf who’s marinated in state finances a long time. It’s instructive because unfunded pension liability also impacts municipal finances. This issue emerges center stage as a major talking point for gubernatorial candidates in the 2018 election already underway. Decades in the making covering both Republican and Democratic administrations, read about the state’s legacy of debt leading to a fiscal cliff where “retirement costs outstrip revenue growth.”
How big is the problem?
The answer can be found in just four line items in the state budget:
— Pensions for public school teachers;
— Pensions for state employees;
— Health care for retired state employees;
— And debt service on bonding for capital projects;
Twenty years ago, those four line items composed 12 percent of the General Fund. Next fiscal year they will consume 31 percent.
And the speed with which they gobble up the budget is accelerating.
Full story here.