Drowning in debt, Connecticut faces budget crunch

Reuters ^ | August 23, 2017 | 7:28 AM | Hillary Russ

[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. …

[Alberta's Child]

Letterman isn’t even in Tepper’s league. You have to report over $1 billion in gross income to pay $100 million in state income taxes in New Jersey!

[fruser1]

CT is probably small enough to build a wall around to keep folks from leaving.

Good practice for the south.

[American Constitutionalist]

You want to see Civil War II really get started ?
Just wait for one of these liberal , bankrupt , out of control spending and taxing states pass laws for themselves to force other states to pay their bills, debts off, forced bailouts....
Don’t laugh it could happen.

[2001convSVT]

Or they could just confiscate every subjects income for one year, yea that would work.

.

.

McConnell must be voted out..

[neverevergiveup]

Look for Connecticut to institute a $10-15/day ‘toll’ to travel from CT to NY and CT to MA.

[ConservaTeen]

Connecticut needs to sell New Haven, Bridgeport, Hartford, and Willimantic to California, then the rest of the state would be Republican...

[puppypusher]

Those Indian Casino's really helped Connecticut and its Tax Problems.Oh!I forgot that the Former Governor of Connecticut Lowell Weiker screamed for an Income tax and our stupid legislators agreed to give it to him.That was also supposed to solve our budget problems.

The one thing they always failed to take into consideration was spending.

They spent like the money was never ending and the Democrats did everything they could to import third world parasites here who immediately went on the public dole.

Connecticut Taxpayers are Screwed.

Unfortunately,I'm one of them.

[Terry Mross]

I think they should tax every liberal hedge fund manager at 90%.

[American Constitutionalist]

I am so glad I don’t live in the Northeast States.

At one time one of our ex-Govs wanted to pass a law to tax those moving out of our state..

[Gay State Conservative]

I don't know about the history of their sales tax but there was a time not that long ago that CT had *no* income tax.While driving through Greenwich (which I do on occasion) I often wonder what the residents think of things...Bridgeport,for example.

[ROCKLOBSTER]

Weiker screamed for an Income tax and our stupid legislators agreed to give it to him.That was also supposed to solve our budget problems. The one thing they always failed to take into consideration was spending.

Every level of "government" is nothing but a jobs program for democRATs...funded by legalized theft.

[Olog-hai]

Most of the towns on the Metro-North lines too, yes?

[Billthedrill]

Just wait for one of these liberal , bankrupt , out of control spending and taxing states pass laws for themselves to force other states to pay their bills, debts off, forced bailouts...

Hah! Got that right. My first guess would be California, second guess Illinois. Both are in dire financial straits but Kali is piling it on with regard to pensions, the Train To Nowhere, and loose-cannon taxation policies. I could see them threatening to default on their bonds, expecting to be bailed out by a federal cash infusion because they're "Too Big To Fail". But under this President? Maybe not so much.

[ConservaTeen]

I’m hoping that this year - local elections - will keep R in New Britain, Meriden, Bristol and put R in Manchester, Glastonbury, East Hartford and Mansfield (sure the last two... East Hartford is a D town,and Mansfield is a college town...)

[Leaning Right]

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

Or they could pull an Illinois and stop paying lottery winners.

[Deplorable American1776]

I was one of Tom Scott’s campaign volunteers. I was at Bushnell Park protesting the income tax. I knew it would be a death knell for Connecticut. I wanted Tom to win. He was great as a legislature.

[okie 54]

The shear economic genius of Democrats is mind boggling

[cherry]

if the people vote for these politicos then they should have their taxes raised, and quite high, so they can make sure all their beloved teachers and other govt workers get to live on their fat pensions....

one must pay for what one wants....

[American Constitutionalist]

To big to fail when California wants to leave the Union ?
Their currentcy would be worthless compared to the USD..