Great Economic News for CTJune 1, 2022
Connecticut's general obligation bond outlook was just raised from stable to positive by the credit rating agency Standard & Poor’s (S&P). This pivotal economic news is due to our historic payments toward our unfunded liabilities, a record rainy day fund and smart investments in the future of our state.
The historic budget adjustment package we passed in the 2022 Legislative Session promotes financial responsibility while still cutting taxes and making meaningful investments in our communities. Connecticut currently has a $4.8 billion budget surplus and a $3.1 billion rainy day fund – the legal maximum for the state.
According to the latest budget estimate from Governor Lamont's administration, our state is poised to pay down an additional $3.6 billion toward the long-standing unfunded pension liabilities. This pension payment is in addition to the $2.9 billion scheduled payment. Utilizing our budget surplus to pay down pensions puts us on a solid fiscal footing for the future and helps to save taxpayers' money. While we still have more work to do addressing our legacy pension debts, these supplemental payments are expected to drive down the minimum required contributions the state must make by as much as $400 million a year, freeing up those resources for other priorities.