Connecticut BEWARE of Governor Malloy’s most fiscally irresponsible 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, 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 Connecticut BEWARE of Governor Malloy’s most fiscally irresponsible proposal yet. - Wait What?:
