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CT Has a Budget and Lots and Lots of Debt, Check Out What you are Paying State Employees and Retirees, Jon Lender reports Law and Lobbying Firm of Ritter and Cafero Spark Controversy, and Much More News on the State of our State

CT Has a Budget and Lots and Lots of Debt, Check Out What you are Paying State Employees and Retirees, Jon Lender reports Law and Lobbying Firm of Ritter and Cafero Spark Controversy, and Much More News on the State  of our State

 

 

 

 

Today, Connecticut’s State Legislature has a budget and it appears the next governor faces a $2.7 billion budget deficit referring to combined projections for 2016 and 2017.  See more below….

 

 

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Investigative Reporting is an Art which has obviously been mastered by Jon Lender of the Hartford Courant as he provides us with further insight into the operations of our State Government.   If we do not have State Conflict of Interest/Ethics Laws which prevent the following, then an ethically minded Republican and/or Democrat State Rep should step forward and propose one!

 

 

Jon Lender: Law-And-Lobbying Firm Of Ritter And Cafero Sparks More Controversy

 

 

Government Watch  2:14 p.m. EDT, May 3, 2014  When House Minority Leader Lawrence Cafero, R-Norwalk, argued strenuously last Tuesday against a bill requiring increased financial disclosures by for-profit nursing homes, he took the same position as a lobbying firm hired by the Connecticut Association of Health Care Facilities to fight the measure…..  The debate on the bill was one of the year's longest — seven hours — and the House finally approved it 86 to 57, with seven Democrats and all Republicans against it.  It's now awaiting Senate action — but, in a way, the House debate isn't over.  That's because two days after Tuesday's vote, a labor union chief made an issue of the fact that Cafero is a lawyer for Brown Rudnick, the law-and-lobbying firm that the health care facilities group hired to try to kill the bill.  Continue reading at ….. http://www.courant.com/news/politics/hc-lender-political-conflict-0504-20140503,0,2333889,full.column

 

 

May 4, 2014

 

 

 

From:  The Federation of Connecticut Taxpayer Organizations
Contact:  Susan Kniep, President
Website:
http://ctact.org/
Email:
fctopresident@aol.com
Telephone: 860-841-8032

 

 

 

 

The New Haven Register reports

 

Nutmeggers say higher taxes, cost of living forcing them to ... rethink living in Connecticut

 

 

The Federation notes that Connecticut’s state and local taxes are driven by State and Municipal Personnel Related Costs as many State Retiree Pensions exceed $100,000 and are as high as $258,000.  Connecticut homeowners are losing their homes to Tax Lien Sales as approximately 80% of local property taxes fund personnel related expenses of Town and Board of Education budgets as some conclude

 

Big Labor is The elephant in the political spending room.

 

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This Week we Got a Glimpse into the

 

CHAOS ON THE HILL IN HARTFORD

(and it’s not over yet)

 

 

Governor Malloy’s questionable plan to spend $1.7 million state taxpayer dollars to mail stipend checks of $55 and $110 to taxpayers making up to $400,000 - as he promoted a phantom surplus of $505 million - has been cancelled.   On April 30th  CTMirror.org reported that Tax receipts plunge, next CT budget $300M in deficit “leaving legislators and Gov. Dannel P. Malloy just one week to fix it, according to a new report Wednesday from fiscal analysts”.

 

On Friday, CTNewsJunkie.com in their article captioned Gubernatorial Candidates Say No Tax Hikes Despite Deficit Projections quotes Senate Minority Leader John McKinney, who is looking for the Republican nomination for Governor,  “…the next governor faces a $2.7 billion budget deficit”, referring to combined projections for 2016 and 2017.  Governor Malloy is also promising no tax hikes. 

 

So where is the money going to come from?  On Aug 18, 2011  the NY Times reported Connecticut Workers Approve Contract They Had Rejected which included a four year no-layoff clause.  Are we at the end of the contracts?  If so, will there be layoffs or concessions?  Or a return to the deep pockets of the taxpayers!

 

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As State legislators gathered yesterday to pass a State budget, news reports have kept us current throughout the week of the antics by our State elected officials in their desperate attempts to find the money (taxpayers’ money) to fund their out-of-control spending to support state union contracts where some are earning high six figure salaries above $500,000 and pensions reaching $200,000 with lucrative healthcare benefits along with millions of taxpayer dollars dedicated to corporate welfare based on speculative job creation.  (see stats below). 

 

In March of 2014 it was reported Analysts: Malloy's budget for Connecticut never was balanced

 

 

The Hartford Business Journal wrote State aid to businesses hits overdrive under Malloy noting: The Malloy administration has opened Connecticut's credit and grant window to businesses to the tune of $234.7 million the last two fiscal years. That's about 74 percent more than the state handed out in the previous six-year period, a Hartford Business Journal analysis shows. 

 

 

The latest report from CTMirror captioned  CT budget relies on $75M in new-found ‘miscellaneous’ tax revenues notes - The new $19 billion state budget the House of Representatives is expected to adopt late Saturday relies nearly $200 million in fund sweeps, risky savings assumptions and other gimmicks to stay in balance – including the last-minute discovery of $75 million in “miscellaneous” tax revenue.

 

In January, 2014, Steve Malanga revealed within his article captioned State debts overshadow brightening revenue picture that a January, 2014 study by the Mercatus Center ranked the states in terms of solvency: three of the states -   California, Connecticut and New York -  ranked 46th, 48th and 45th, respectively on long-run solvency thanks in part to their mountains of debt. The study defined insolvency as, “ability of a government to pay all the costs of doing business, including expenditure obligations that normally appear in each annual budget, as well as those that show up only in the years in which they must be paid.” Page 35 of the Report at the following web link provides information on Connecticut.  http://mercatus.org/sites/default/files/Arnett_StateFiscalCondition_v1.pdf

 

 

The Governor’s latest Smoke and Mirrors Budget also provides insight into New CT budget missing $52M to cover union retirement benefits as reported by CTMirr.org -  If Connecticut’s chief fiscal watchdog is correct, there’s a $52 million hole in the new state budget Gov. Dannel P. Malloy and majority Democratic legislators hope to enact Saturday.  Despite a warning sent to the administration seven months ago by Comptroller Kevin P. Lembo – also a Democrat – the compromise budget unveiled Friday by the governor and legislative leaders fails to include $51.6 million to cover contractually required health insurance costs for retired workers….. Malloy also failed to include the $51.6 million in the $19 billion budget he proposed for 2014-15 in February.  The legislature’s nonpartisan Office of Fiscal Analysis issued a report in mid-March concluding that the governor’s plan was $69.4 million out of balance, and that the $51.6 million shortfall in the retiree health care account was the chief culprit. http://ctmirror.org/new-ct-budget-missing-52m-to-cover-union-retirement-benefits/

 

 

But spending $1.7 million to send $55 checks was not the first questionable proposal of our Governor.   Remember his plan to eliminate the car tax?  The outcry from Democrat Mayors was heard loud and clear as they understood the loss of car tax revenue to their community would in turn significantly increase local property taxes as taxpayers are now paying approximately 80% of municipal budgets to fund local government employee personnel related costs. 

 

And more recently, there is an outcry from business groups who have threatened legal action if the Governor enacts a new fee on health insurance policies to pay for a state-level health reform initiative which would cost  $3.2 million for expenses and new staff as noted in the article captioned

Business groups question Malloy health reform funding plan.

 

Now of course funding problems at the State and within the 169 Towns in Connecticut could be solved if Governor Malloy and our State legislators supported reforms to State mandates – such as Collective Bargaining and Binding Arbitration Laws.   But as Governor Malloy proclaims himself to be the son of organized labor, there is little chance of that happening as Connecticut taxpayers, many of whom have little to no pension to rely on for themselves, dig down deep to pay State employee pensions as high as $258,000 a year. 

 

Five years ago, I wrote the following Arbitration Puts Public Unions In Driver's Seat - Collections.  Since then, nothing has changed. Makes you wonder what will happen when private sector workers in Connecticut can no longer afford to meet the financial demands of State and municipal public sector union contracts?

 

 

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In 2013, the State of Connecticut Paid 48,115 Retirees Pensions Totaling over $1.5 Billion - $1,535,268,324.  Many Annual Pensions exceed $100,000, with the highest Annual Pension at $283,273.    

 

More can be found at - Pensions - When at the Website, Click Search, Next at RANGE, Go to MORE THAN, and Insert the number 1 in the box next to it.  Then Twice Click on Total Pension Payments -This will allow you to see the highest to the lowest pensions being paid.  If you have a question call 860-841-8032. 

 

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In 2013, the State of Connecticut Paid to 95,257 Employee Compensation

 Totaling Over $5.6 Billion - $5,625,990,735.   Many salaries, wages and fringe benefits exceeded $500,000 with the highest at $2.9 Million.

 

More can be found at - Employee Compensation -  When at the Website, Click ADVANCED SEARCH,  then SEARCH,   Then Twice Click on TOTAL -This will allow you to see the highest to the lowest being paid. If you have a question call 860-841-8032. 

 

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As Kevin Rennie in his column reports Short-Term Judges Win Pension Lottery - Collections, he notes: You are right to wonder why a hefty tax increase and claims to have gotten spending under control have not brought stable finances to state government. Sometimes a jarring example will help explain something as complex as Connecticut's troubled, growing budget.  Imagine snagging a $100,000 a year pension after only a few years of work. It's happening now in Connecticut. Democratic and Working Families Gov. Dannel P. Malloy nominated 15 lawyers to serve as judges of the Superior Court, though there appears to be no shortage of judges. Three of those nominees are in their 60s. The oldest of the three, at 67 years old, will in three years receive a pension of two-thirds of his $147,000 annual salary, or about $100,000 a year for life. It would be hard to think of another institution with such a generous and costly pension arrangement. Connecticut law awards a judge a pension of two-thirds of his annual salary when he turns 70. It does not matter if a judge served 20 days or 20 years, the judge wins the pension lottery. Life spans being what they are, especially for the college and graduate school educated, the taxpayers probably are on the hook for well over $1 million for each judge. In addition to receiving his pension, the judge may supplement his income by more than $1,000 a week by carrying on some duties after retirement. Continue reading at …. http://articles.courant.com/2013-03-08/news/hc-op-rennie-judges-pensions-give-clue-to-budget-w-20130308_1_pension-bonanza-hewett-pension-benefit

 

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The Day - 'A financial time bomb': State pension system is ... one of the country's most underfunded

 

By Johanna Somers Publication: theday.com   January 13, 2014 Retired

 

Connecticut state employees received the highest annual pensions in the country in 2011, despite contributing less out of their paychecks than the national average. That meant the state's pension system was the second-most underfunded in the United States, in worse shape than every other state's except Illinois'.

Connecticut would have to allocate about $70 million in additional funds each year for 18 years to close the funding gap in the major state employees' pension system, according to actuarial estimates. And that wouldn't address the $11 billion gap in the teachers' retirement system, which would need tens of millions of dollars more every year during that same period.  Continue reading at …. http://www.theday.com/article/20140112/NWS12/140119903/%27A-financial-time-bomb%27:-State-pension-system-is-one-of-the-country%27s-most-underfunded

 

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Public pensions are eating taxpayers alive

 

By Jeff Jacoby  | Globe Columnist   March 23, 2014

 

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Some state pensions in dire straits

USA Today | by Dustin Racioppi | March 21, 2014  

In Illinois, which has the lowest credit rating in the U.S. and was most recently downgraded for failing to properly fulfill pension obligations, its $187 billion pension liability represents 318% of its revenues despite a range of overhauls, according to Moody's. Connecticut's $57 billion liability is at 243%, and Kentucky's $41 billion liability is 211% relative to revenues, according to the service.

Read complete article at http://www.usatoday.com/story/news/nation/2014/03/21/public-pensions-in-perilous-straits/6684383/