Connecticut BEWARE of Governor Malloy’s most fiscally irresponsible budget proposal yet.

“Gov. Dannel P. Malloy outlined Wednesday a sweeping plan to overhaul state government’s pension system.”  – CT Mirror 10-29-2015

Governor Dannel Malloy’s state budget, that took effect last July 1, is already a quarter of a billion dollars in deficit and the problem is actually far worse.

Next year’s state budget is even more out of balance and after the next election, when legislators reconvene in January 2017, Connecticut will be facing a two-year General Fund Budget Deficit of $1.6 Billion … YES, A DEFICIT OF $1.6 BILLION … [A deficit of at least $927 million in FY 2018 and $831 million in FY 2019.]

In order to address that problem, Governor Dannel Malloy is proposing to dramatically change the way Connecticut funds its state employee pension system.

The maneuver is intended to reduce the amount of money the State of Connecticut puts into its pension fund in the short-term – thereby reducing the hole in Malloy’s state budget.

However, by failing to make the required pension payments in the years to come, Malloy’s plan would shift as much as $10 billion dollars onto the backs of our children.

If Malloy’s plan is adopted, the additional spending would start in 2033.  While it seems years away, the fact is that a child born today will turn 17 in 2033.  Connecticut, like the United States, has already taken on too much debt.  Making the required pension payments as we go forward will not be easy, but shifting the burden to our children and their future is even worse.

Malloy’s proposal is complex and thus will get limited media coverage, or worse, no coverage at all.

Today the Stamford Advocate published an editorial entitled, Malloy initiative on taxes and payroll a good oneWhile complementing Malloy and his budget director, the editorial didn’t even mention Malloy’s pension proposal even though the impact of his plan will be significantly greater than his proposal to cut taxes for GE and reduce the number of state employees.

The lack of reporting is no excuse for not following the issue and demanding that legislators act appropriately.

All voters should start by reading Keith Phaneuf’s article, Malloy calls for big change in pension financing, in yesterday’s CT Mirror and then continue to monitor his coverage and the articles written by other reporters at the State Capitol.

When making the announcement yesterday, Malloy called his plan a “bold move.”

Connecticut’s elected officials, including Governors O’Neill, Weicker, Rowland, Rell and Malloy have all failed to properly fund Connecticut’s pension programs, but there is absolutely nothing bold about simply shifting the burden to the next generation.

Connecticut voters across the political spectrum should take note.  Whether liberal, conservative or moderate, whether Democrat, Republican or other, Malloy’s pension plan will dramatically impact Connecticut Government and the rate of taxes and spending.

Many of those who will be most impacted by the pension plan are only children.  Others have yet to be born.

Do not let our elected officials make this decision in vacuum.

Learn the facts and speak out.

As noted in yesterday’s Wait, What? post – Fiscal responsibility does not begin with running away from our obligations!

  • dt

    Now the world knows!

    http://money.cnn.com/2015/07/14/retirement/worst-state-pensions/
    For many former state workers, a monthly public pension check is their bread and butter in retirement.

    But the gap between what states have promised retirees and how much is saved to fund those payments has grown, according to a new report from Pew Charitable Trusts. States are short $968 billion for their pension systems, an increase of $54 billion over the year before. When debts from local programs are taken into account, the total shortfall tops $1 trillion, according to the report.

    Three states — Illinois, Kentucky and Connecticut — have less than half of their pension programs funded. Illinois is in the hole by more than $100 billion.