Yankee Institute Blog
Gov. Dannel Malloy called on state legislature to approve electronic tolls for Connecticut’s highways, a 7 cent increase in the gasoline tax and a three dollar tax on tires in an effort to increase revenue to the state’s Special Transportation Fund.
Connecticut’s state agencies need to stop offering six-figure separation and non-disparagement agreements to former employees without third-party oversight, according to a report to the General Assembly by state auditors John Geragosian and Robert Kane.
DOT pension, healthcare costs grow nearly $30 million in three years as state projects are put on hold
Pension and healthcare costs for employees with the Department of Transportation grew $30 million over three years, increasing operating costs for Connecticut’s beleaguered Special Transportation Fund.
According to figures from the State Comptroller’s Office, between 2014 and 2017 state pension contributions increased $21 million, while healthcare costs increased $9 million.
Despite the Commerce Department’s report that Connecticut’s economy had grown 3.9 percent during the third quarter, the state’s economy has actually shrunk over the past year.
The number of retired state employees receiving six figure pensions jumped by at least 30 percent since 2016 and more than 1,000 percent since 2010.
According to a report by the Hartford Courant, there are now “nearly 1,400” retirees who received more than $100,000 in pension payments over the course of 2017.
Commission hears testimony on the cost of Connecticut’s “dysfunctional relationship with its government unions”
Only sixty-five cents of every tax dollar actually goes toward funding Connecticut’s state government, the rest goes toward supporting the “legacy costs” of massive debt, pension and healthcare costs.
That fact was pointed out by former Webster Bank CEO and co-chair of the Commission on Fiscal Stability and Economic Growth, Jim Smith, during an extensive hearing on the various difficulties — both fiscal and economic — facing Connecticut.
For a state facing billions in projected deficits, $11,000 may seem like a drop in the bucket, but that is what it will cost Connecticut taxpayers when lawmakers convene for a special session to override Gov. Dannel Malloy’s veto of a bill to save a popular Medicare program.
The Connecticut State Supreme Court ruled last week that Connecticut’s school funding formula did not violate the state’s constitutional mandate that every child be provided a “minimally adequate” education.
But “minimally adequate” might not be enough for some parents and students.
Despite the suspension of 400 infrastructure projects around the state, Gov. Dannel Malloy’s $100 billion Let’s Go CT initiative is still moving forward, albeit at a slower pace, with $3.7 billion in bonding over the next five years.
Connecticut has spent $13.9 million more in overtime for state employees during the first half of this new fiscal year than it did in 2017, according to a report by the Office of Fiscal Analysis.
Connecticut had been making headway in reducing overtime spending since a high of $256.1 million in 2015. In 2017, Connecticut spent a total of $204.4 million.