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CONNECTICUTS FISCAL CRISIS DEEPENS
and
CT Taxpayers Will Pay the Price
As Deficits Grow, Auditors Take Notice, and Companies
Bankrolled with CT Taxpayer $$$$$ File for Bankruptcy
We learn from Christine Stuart of CTNewsJunkie.com
that Governor Malloy is Unpopular Until The End
February
5, 2018
From: The Federation of Connecticut
Taxpayers
Contact: Susan Kniep,
President
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone:
860-841-8032
On February 1, 2018, headlines read
STATE COMPTROLLER LEMBO PROJECTS
$244.6 MILLION DEFICIT
The following is an excerpt Comptroller Kevin Lembo announced
today that the state is on track to end Fiscal Year 2018 with a $244.6-million
deficit as a deficit mitigation plan proposed by the governor awaits action by
the state legislature. In a letter to Gov. Dannel P.
Malloy, Lembo said that his office is projecting a
slightly higher deficit than the most recent projection last month by the state
Office of Policy and Management (OPM). Lembos
projection is larger due to an anticipated $26.4 million deficiency in the
states adjudicated claims account, which is responsible for paying SEBAC v.
Rowland settlement claims and related attorneys fees,
as well as other negotiated and often unpredictable settlements. Continue
reading at http://www.osc.ct.gov/public/news/releases/20180201.html
The following is an excerpt from the publication by CTMirror.org captioned
A legacy of debt: Connecticut standing on its own fiscal cliff
Connecticut for at least 15 years to come is likely to face a
bleak and politically dangerous menu of options that could shape the states economy and quality of life. The cost of paying down
$50 billion in unfunded retirement benefits, plus other state debt, is eating a
growing portion of the budget, squeezing funding for transportation,
education, social services and, perhaps next, state aid for municipalities.
Continue reading at https://ctmirror.org/2017/01/30/a-legacy-of-debt-connecticut-standing-on-its-own-fiscal-cliff/
And the majority of taxpayers both
state and local are witnessing that squeeze through supplemental car tax bills
and municipal aid cuts which in turn drive up local property taxes. It also
resulted in cuts to Medicare, etc. In addition, over the next 10 years, state
taxpayers will also be burdened with paying the lucrative salaries and pensions
of state employees with whom State Democrats sealed a deal prior to determining
how they would pay for the rest of the States budget.
Although several weeks have passed since the Labor Union
Contract was signed, it appears the Democrats now do have a plan as headlines
in the Hartford Courant read House
Democrats Pushing Hard For Tolls. This proposal drew some very interesting and legitimate
responses from the State Republicans. The following is an excerpt from the
Courants Jan 29th article
I understand some people are desperate to look at tolls as a
cure-all for a state that has been damaged by years of failure under Gov.
Malloy and a Democrat-controlled legislature, said Senate Republican Leader Len Fasano of North Haven. But its reckless to rush to approve tolls
before even understanding the economics of how they would work. Everyone
assumes tolls would be put on the borders; but lets be clear, the state cannot put up border tolls.
Fasano added, If Connecticut has to
toll every major route in our state to stop people from dodging tolls, how will
the state afford to pay for the installation of such broad infrastructure so
quickly? And how much will residents have to pay at the tolls in order for the state to generate a profit? Studies thus
far are based on Connecticut adopting toll prices that far exceed toll rates in
other places by anywhere between two and four times the highest rate in the
country. Read the entire article at http://www.courant.com/politics/hc-pol-tolls-push-hard-session-20180129-story.html
So what will be the ultimate outcome in bringing the state budget
to a close? We will have to live with the suspense a little while longer as Keith M. Phaneuf of CTMirror.org
reported on Feb 2, 2018 Malloy to take one last
shot at balancing CTs books Gov. Dannel P. Malloy will use the
final budget proposal of his tenure next week to urge lawmakers to close a
nearly $165 million gap in next fiscal years finances
and mitigate much larger shortfalls facing his successor. Continue Reading →
Read more by CTMirror.org in
Budget/Economy
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And while you are waiting, check out
that which is provided by CTNewsJunkie.com captioned
How Do You Begin to
Address CTs Fiscal Challenges? Start With The Data!
Therein
they report As Connecticuts fiscal obstacles, and the urgency to address
them, continue to grow, so too does the publics need and desire for accessible
and transparent data and information. CTStateFinance.org provides that with an in-depth look into the States finances,
such as its tax revenue, spending, and long-term pension and debt obligations. Read more
The following is one
issue addressed within this publication
Connecticuts Fixed Costs
In fiscal year 2017, Connecticuts total General Fund expenditures were
approximately $17.8 billion. Almost half of those expenditures were categorized
as fixed costs. As the States fixed costs are increasing, the amount of money
available for the discretionary or non-fixed portion of Connecticuts
General Fund is shrinking. Continue at http://ctstatefinance.org/assets/uploads/images/CTs-Fixed-Costs-Infographic.pdf
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JON LENDER of the HARTFORD COURANT Reports
Windsor Marketing Group. Inc. Files for Bankruptcy
Jon Lender Company That Got Millions In State Loans Files For Chapter 11 Bankruptcy
A Suffield marketing company that has received $3.5 million in
state economic development loans since 2009 filed a Jan. 8 petition for Chapter
11 bankruptcy protection from creditors, while it reorganizes in hopes of
getting out of a cash bind it attributes to financial problems affecting retail
stores nationwide that are its customers. Continue reading at http://www.courant.com/politics/government-watch/hc-pol-marketing-firm-chapter-11-story.html
ALEX WOOD of the
JOURNAL INQUIRER Reports
Positive,
polite, deceitful: State records indicate DECD aide conned by bogus pita baker
who got $400,000 in funding
Excerpt: Shortly after a South Windsor pita bread
baking company received a $100,000 grant and a $300,000 loan from the state
Department of Economic and Community Development in 2012, a department employee
described the companys director, Mohsen Youssef, this
way in an email to a colleague in the state Labor Department:
A positive and very polite young man, originally from
Egypt, who has a refreshing and trusting manner about him.
The writer was Susan
Chen, DECDs project manager for the financial assistance application that
Youssef, then 22, had filed with the department on behalf of his company, Amoun Pita & Distribution LLC. Continue reading at http://www.journalinquirer.com/public/positive-polite-deceitful-state-records-indicate-decd-aide-conned-by/article_ba898e20-f28b-11e7-8fbd-b3544d588fab.html
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Manchester
Journal Inquirer reporter Eric Bedner writes
Auditors rip pay to departing employees; Report cites many state
payouts of $100,000 plus
Saturday, February 3 - 6:32 AM
Excerpt
State agencies continue to
provide hundreds of thousands of dollars in hush money payments to former employees to prevent them from
whistle-blowing, according to the annual state auditors
report to the General Assembly.During the course of our audits, we have found large payments made
by state agencies to departing state employees, the audit report states. Upon
further investigation and discussion with agency personnel, agencies claim that
they made these payments (many of which were in excess of
$100,000) to avoid costs associated with litigation or as part of
non-disparagement agreements. Read More
More
Connecticut
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Manchester Journal Inquirer reporter Kym Soper writes
Airport Authority director
gets $50K bonus
Connecticut Airport Authority Executive
Director Kevin Dillon earned a $50,000 bonus this month over and above the $304,986 he was paid in salary for 2017. Continue reading at http://www.journalinquirer.com/public/airport-authority-director-gets-k-bonus/article_58139e24-0123-11e8-8c46-5f304cd6aeb5.html
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