Yankee Institute Blog
Connecticut imposes “onerous” state licensing requirements on a large number of low-income jobs, according to a new state-by-state study by the Institute for Justice. The state licensing requirements means that workers must complete state-mandated...
The personal income growth for Connecticut residents was the slowest in the nation in 2017, according to a report by Pew Charitable Trusts.
Personal income in Connecticut for 2017 actually dipped .6 percent into the negative, and the residents’ personal income growth rate since 2007 has been an anemic .6 percent.
Connecticut state employees will have to pay more in order to continue using Hartford HealthCare’s network of doctors and health facilities – including Hartford Hospital – due to an ongoing contract dispute between the Hartford Healthcare and insurance giant Anthem.
Anthem is one of two insurance companies that cover Connecticut state employees. However, state employees enrolled in Anthem Blue Cross, Blue Shield now have to pay out-of-network rates to be treated at Hartford HealthCare’s facilities.
Although Connecticut’s 2017 budget crisis may have come to an end when Gov. Dannel Malloy signed the bipartisan budget on Tuesday, the next budget promises to be just as difficult.
The nonpartisan Office of Fiscal Analysis is already projecting a $4.6 billion deficit, largely due to the rapidly rising costs of pensions, retiree healthcare and debt service combined with declining tax revenue. Fixed costs now consume more than 50 percent of General Fund expenditures.
Connecticut’s government spending outpaced the state’s gross domestic product by a wide margin since 1990, according to a review of past figures compiled at U.S. Government Spending, an online database of state and federal spending.
The newest budget negotiated between Democratic and Republican leaders in both the House and Senate has yet to be released, but based on the information we have received, this is a breakdown of the changes included in the new budget package.
Connecticut teacher pension contribution may rise 1 percent under new budget, but still remain below national average
Lawmakers may increase the teacher pension contribution rate from 6 percent of a teacher’s pay to 7 percent as part of a new, compromise budget package.
Although proposal has drawn strong criticism from the state’s teachers’ unions, Connecticut teachers would still be paying less than the 8 percent national average teacher pension contribution and far less than the 11 percent contribution required in Massachusetts.
Connecticut lost 2,000 jobs during the month of September, according to the latest job numbers from the Connecticut Department of Labor. This is the third month of job losses in a row, largely erasing gains made earlier in the year.
The majority of losses came from the private sector which saw a decline of 1,100 jobs, with employment in construction and hospitality showing large decreases.
A financial stress test of all fifty states by Moody’s Analytics showed that Connecticut is unprepared should the country experience another recession – even a moderate one.
Connecticut was one of the bottom 15 states that were “substantially unprepared” for an economic downturn, which would lower tax revenue and increase state service needs to help those affected by a recession.
There are only a few states that generally rank lower than Connecticut in terms of fiscal stability and outlook and New Jersey is usually one of them.
Like Connecticut, New Jersey is saddled with high taxes, major pension problems and fiscal mismanagement, but a new study released by the Garden State Initiative uses Connecticut’s history of raising taxes to solve those problems as a “cautionary tale.”