Christine Palm

Dear Neighbor,



After several years marred by a bleak fiscal outlook, there is finally some good news.

 

I’m pleased to report that responsible budgeting and major structural changes the State has made to pension and teachers' retirements plans are putting Connecticut on much more solid fiscal footing. As a result, financial rating agencies continue to upgrade our status, because ultimately, this prudent management will save taxpayers billions in debt payments.

 

In a recent report to the Legislature’s finance committees (watch it HERE) the Office of Policy and Management noted the Teachers' Retirement Fund unfunded liability — which has dogged us for decades — has been reduced by a billion dollars in the last year alone. That contribution, combined with other recent deposits, means the State will save $9.4 billion over the next 25 years.

Consequently, millions of dollars that would have otherwise gone to debt payments are now freed up. (While our unfunded liability is being reduced by billions, the annual impact to the general fund is in the millions because, like a mortgage, we pay only a portion of the amount owed every year.)

 

I am confident the General Assembly, working with the Governor’s Office, will continue to use this money to invest in programs and practices that improve the quality of life for all residents, e.g., childcare, mental health services, higher education, and workforce training. In addition, I will be arguing for investments in our non-profits, climate change mitigation, and affordable housing.

To learn more, read this CT Insider Article: