Connecticut faces a massive burden of bonded debt, ranking first among states in 2022 with $7,988 per person. Despite efforts to reduce this debt, the state has high levels compared to personal income and gross state product. The state treasurer expects to sell $2.6 billion in bonds this fiscal year to support various initiatives.
Legislators argue that borrowing is essential to complement regular budget spending, particularly in education and job development. But efforts to address bonded debt have been met with challenges. Connecticut officials have been criticized for using borrowing to cover non-education municipal grants and for funding small projects in legislators’ home districts.
The state also faces significant unfunded pension obligations and retiree health care debt, totaling over $54 billion. Lack of proper savings over the decades has led to these issues, with ongoing struggles projected into the 2040s or early 2050s. Despite some steps to mitigate the debt, Connecticut still faces significant financial challenges ahead.
Source
Photo credit ctmirror.org
