Connecticut spiraling into financial despair

dannel malloy

Gov. Dannel Malloy (Demorat)

Odd how high taxes can lead to a financial crisis…

From Fox News: While Illinois Opens a New Window. Connecticut has been under the microscope for its $15 billion backlog of unpaid bills, multi-billion dollar pension crisis and paralyzing political polarization, it is not the only state facing pressure to pass a spending deal by June 30.

The nation’s wealthiest state, Connecticut, is also facing a series of challenges as it remains unable to strike a budget deal with the new fiscal year approaching on Saturday. It is likely the state will enter the new month without an approved two-year budget, but a so-called provisional “mini budget” is still on the table. This last-ditch option includes $300 million to balance out spending cuts the state would be prompted to make in order to keep up with the deepening deficit.

Revenue shortfalls in the state register around $450 million for the current fiscal year alone, while estimated deficit totals are projected to clock in near $5 billion for the 2018 and 2019 fiscal years combined, according to The Connecticut Business & Industry Association. Debt outstanding levels and unfunded pension liabilities relative to revenues are among the highest of any state in the country, Moody’s Investors Service said in May.

As previously reported by FOX Business, income-tax collections are projected to fall Opens a New Window. in fiscal year 2017 for the first time since the recession.

Connecticut’s financial despair comes despite the state government’s approval of one of its largest tax rate increases ever in 2015.

The three major rating firms have downgraded the state’s credit rating in response to the ongoing budget crisis. In its most recent downgrade, which landed Connecticut with the third-lowest rating out of every state behind only New Jersey and Illinois, Moody’s said “the downgrades reflect continuing erosion of Connecticut’s finances, evidenced by the pending elimination of its rainy day fund, growing budget gaps and rising debt levels.”

However, the situation could get worse still.

On Thursday, health insurance giant Aetna announced it would move its Hartford, Connecticut-based headquarters — after more than 150 years in the state — to New York City in late 2018. The company cited a lack of access to talent as one reason it was leaving its Connecticut base, and said Thursday its long-term commitment there will depend on the state’s “economic health.”

Earlier this year, General Electric (GE) announced a similar move, shipping its headquarters from Fairfield, Connecticut to Boston, Massachusetts.

DCG

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18 responses to “Connecticut spiraling into financial despair

  1. Leave it to the demoKrats, they have that special touch that turns everything in a perfect pile of shit.

    Liked by 6 people

  2. William Brandon Shanley

    I live in Connecticut and I would like to correct several misapprehensions in this report.

    1) Only 250 Aetna executives are moving from Hartford to New York, and who can blame them? Where would you rather live? A bedroom state or in the hub of excitement and culture of New York City?

    2) The taxes are higher in New York City than in Connecticut, so the claim they moved to NYC because of high taxes doesn’t wash.

    3) My mother was a newspaper reporter for the Waterbury Republican-American from the 1950s to the 1980s, which won a Pulitzer in 1940 for exposing corruption. Back then reporters prided themselves on covering news “like Hoover vacuum cleaners.” In the 80’s, what had been chiefly family owned newspapers were for the most part taken over by Wall Street and the likes of Times-Mirror and Gannett, which exhibited no real commitment to Connecticut, only to money and the bottom line. Money was extracted from our local communities and the state and sent to Rochester and Los Angeles every night, meaning it didn’t get reinvested here. Same thing happened to full service banks and savngs and loans which have all but disappeared from our communities.

    As such, today, we read headlines and stories about the budget battle between Repubs and Dems, but there is no reporting that I can find anywhere about the contents of the budget. Apprently, no reporter reads, muchless reports on items in the state budget. Whenever the light of human observation is missing, history teaches us that fraud, graft and mismanagment manifest and grow. And although most communities in Connecticut are well-managed, when the money goes to Hartford, no one seems to know where the money goes. This leads me to 4.

    4) Beginning with the devastation from the Flood of 1955, small Italian contractors like O&G, Tomasso and others, some of whom only had one dump truck, were given enormous checks by the state to clean up the emergency, and then to build nine flood control dams as well as both new and re-routed state highways and the burgeoning interstate highway system. O&G today, which is still family owned, is worth an estimated $24 billion. Most of that is state money, and it’s rumored that these contractors have moles and tecnicians working in the state transportation office writing the contracts! Hence, this is why, in my view, that in the 90’s it took ten years to resurface a bridge on I-95; fifteen years to add a lane on I-84 between Waterbury and Danbury. Why fifteen years? The contractor had to pave, scrape off and repave the pavement three times because of faulty applications, defective product, etc.! In an I-84 highway widening project in Cheshire, budgeted at $25 million, concrete was poured but the catch basins were never connected, meaning the whole project had to be ripped up and redone at a cost of $75 million. This happened despite the fact that the prime contractor, the catch basin subcontractor, an independent project inspector, and state inspectors all approved the drainage system PRIOR to the concrete being poured! So what happened? Gov Jodie Rell, a Repub, who became governor when Repub Gov John Roland was sent to prison for graft, appointed a commission to look into how this was possible, and of course, it was all behind closed doors. I don’t know that we the people ever did find out what happened! This is why Connecticut is referred to as “Corrupticut” and the blame can be laid at the feet of both political parties and the news media. Same could be said to be true re: the $8.5 trillion “missing” from the Pentagon. Both political parties and the news media enabled that theft.

    5) My father was first selectman for 35 years off and on in the Town of Harwinton, pop aprox 5,000, adjacent to Litchfield, from 1959 to the early 90’s. His entire life was dedicated to the town. He worked all day as the equivalent of mayor, and then virtually every evening he was booked attending town meetings, board of finance, zoning, environment commission, board of selectman, or community service organization gatherings with the Lions Club, or at our Congregational Church, Harwinton Fair Committee, etc. Because of his commitment to his work–the town was his “magnificent obsession”–one day he failed to make it to the post office before closing to buy a postage stamp to mail in his mortgage payment, which meant the payment would be late. He was wrong to do it, but between a rock and a hard place, he used the town’s postage meter for the 25 cents in postage to make sure his payment was on time. People and expenditures in these towns are watched so closely — there is a first, second and third selectman to keep an eye on one another, or so it seems! — that when it was discovered he used the meter for private business, there was a story about it in the newspaper!

    In closing, in my view, it is because of the evisceration of newsrooms in Connecticut by Wall Street’s big media companies that residents of Connecticut have not a clue about what happens to their tax money when it goes to Hartford, the reason the state is broke, every year seems to come up a billion short, and why the Sandy Hook Massacre psy-op was so successful. And alas, this is not only happening in Connecticut, but across this once great land.

    I hope this helps to bring some clarity to the causes and effects of Connecticut’s mess. Thanks for the gift of your listening!

    Liked by 5 people

    • Among causes of the problem would be corruption of the media as told by you. A free press was declared essential for survival of our country in the Constitution’s First Amendment, and an element of our society that has at best disregard for our survival as a nation knows that and is acting accordingly. Further, the greatest of evil (love of money) is at war with good, and our love of good and support for it left when we turned our backs on God in every area of our lives as a nation, including our education system. Much of our nation’s (and perhaps the world’s) intelligence has passed through education establishments in your state. May we do what is needed to make America great again. What happens to us will have global effects.

      Liked by 2 people

    • I supposed you were doomed by the inevitable descent into communism of the Democrat party. Here’s a visual to help with my theory:

      Liked by 2 people

    • Did you ever read “Thanks for the Memories” by Brice Taylor, and/or “The Rockefeller File” by Gary Allen? Those explain a lot as well. 🙂
      The amount of complete waste and frittering away of stolen “tax” money is the reason, that and graft/theft of course. The amounts of money that are totally flushed down the toilet by the government is mind-boggling. It’s like giving a kleptomaniac a credit card with no spending limit.

      Liked by 1 person

  3. Absolutely ridiculous . . .they raise taxes, then these miscreants figure they have more money to spend, so that’s what they do. It is my perception that Demokratz think it is their main job to “bring home the bacon” . . . to themselves, their cronies, the labor unions, etc. I don’t think they have much of a perception that they are there to head up seeing that the basic needs of a state are supplied to its citizens. . . . clean water, electricity, roads, safety, schools. For crying out loud, their performance relative to schools and education is abysmal . . . according to this report, they are not able to educate enough of their own citizens that they can supply talented people to work for one of the largest insurance companies in this land, which is Aetna Insurance. So Aetna smartened up and is moving to New York City. This is a terrible blow to those who now work at Aetna, and to the tax base in Connecticut.

    DCG . . . most interesting article. I have little doubt that Oregon is not far behind the State of Connecticut.

    Liked by 3 people

  4. Interesting that there is a “Pajama Boy Approves” leader over the picture of Gov. Malloy. Malloy looks like PB grown up – in age, but retaining the same level of maturity. It has been said many times that nations and states cannot tax their way to prosperity. Taxes beyond covering certain irreducible basics are evil and must not be. Leave charity and social change to the private sector and the First Estate, which have enormous creativity and can get the job done efficiently. But this basic economic truth has escaped one party totally, and the other to a large extent.

    The various states need leaders who are unafraid to challenge the politically correct status quo. And they would have to be exceedingly strong, because the self-serving and misguided powers-that-be have a deep lock on the culture, the nation, and its institutions.

    We now have that leader at the national level. We need to keep praying for the safety of him and his family, and for his wisdom. Maybe his redeeming spirit will trickle down – yes, I used that term – to the states. It is critically needed.

    Liked by 3 people

  5. Connecticut has the highest per-capita income, Human Development Index (0.962), and median household income in the United States — all of which implies that Connecticut also has a highly educated populace. Why aren’t they overseeing the state government and demanding accountability?

    Liked by 2 people

  6. So with the last administration, our national debt was more than doubled, we had people leaving office and high positions with unbelievable bank accounts and we have hundreds of billions of missing money. 6 billion was on Hillary alone.
    And, democratic led states are sinking faster than a bag of ball bearings and they think they deserve to be back in charge of this country?
    Excuse me while I go and get my elastic support to hold my ribs in.
    I have no empathy for all the sinking states that refuse to make changes.

    Liked by 2 people

  7. Perhaps they could put a surcharge on crisis actors and fake “donations”. That should tide them over nicely.

    Liked by 2 people

  8. Why don’t they borrow another 2 Billion and build a bridge across the ocean to Europe? Then they can import socialism directly all the while bolstering the economy with temporary construction jobs! It’s a win-win situation!

    Liked by 1 person

    • Haha, good one! But, pleaassseeee, don’t give them any ideas. We do not want any “trickle down” multicults finding their way South from “Corrupticut.” 😀

      Liked by 1 person

  9. They forgot one basic rule of economics. Rich people can afford to move.

    Money is like a fine woman. She will go where she is treated best.

    Liked by 2 people

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