- Joined
- Aug 26, 2007
- Messages
- 50,241
- Reaction score
- 19,243
- Location
- San Antonio Texas
- Gender
- Female
- Political Leaning
- Conservative
https://www.reuters.com/article/us-connecticut-debt-idUSKCN1B318NHARTFORD (Reuters) - 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.
Connecticut has piled on debt to bolster its public pensions, selling $2.3 billion of bonds in April 2008.
And again in December 2009, the state sold $916 million of economic recovery notes to close a budget deficit after depleting its rainy day fund during the Great Recession.
By many measures, Connecticut's debt levels are the worst of the 50 U.S. states.
Another state imploding under the weight of public pension plans that are underfunded and over promised.