Yankee Institute Blog
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.”
Connecticut slid backwards in the Tax Foundation’s annual ranking of states based on their business tax climate.
Connecticut ranked 44th in the nation – one ranking lower than last year – and far behind Massachusetts, which ranked 22nd in the nation. Connecticut, however, did beat out New York and New Jersey.
Gov. Dannel Malloy released his 4th budget proposal this year in an effort to reach a bipartisan consensus to pass a budget. Connecticut is well over 100 days into the new fiscal year, and is the last state in the nation without a budget.
Touting it as a “bare bones” budget, Malloy eliminated many of the controversial proposals from both Republican and Democrat authored budget plans, but still shifts some of the state’s burden onto municipalities.
State employee unions threaten legal action against future benefit reforms as budget negotiations continue
Connecticut state employee unions threatened a lawsuit against the state if future reforms to state employee benefits are included in a bipartisan budget.
Gov. Dannel Malloy’s education cost sharing executive order maintained flat funding for the Bridgeport school system, but that wasn’t what Bridgeport Superintendent Aresta L. Johnson was hoping for, according to her budget talking points.
Despite receiving the same amount of state education funds as last year, the Bridgeport school system has implemented a hiring freeze and an operational account freeze for nonessential and contractual accounts as the school system faces rising costs.
While state employees were given a 4-year no layoff guarantee through the union concessions deal, municipalities will have few options but to layoff teachers, staff and municipal employees.
Following the governor’s veto of the bipartisan budget passed in September, those layoffs are happening, pitting the interests of state teachers’ unions against those of the state employee unions
Connecticut would have to pay 35 percent of its tax revenue over 30 years in order to meet all its pension and retiree healthcare liabilities, according to a report by financial powerhouse JP Morgan.
In their ARC of the Covenants 2.0 report, which examines credit risk for municipal bond holders, JP Morgan listed Connecticut as one of four states including New Jersey, Illinois and Kentucky, as having the highest retirement liabilities.
On Sunday more than 150 parents, children and education advocates gathered in Middletown for the annual March for Education, meant to celebrate education and learning in Connecticut.
The march occurred on the same day Gov. Dannel Malloy’s executive order took effect, zeroing out education funding for 85 towns across Connecticut.