I've lived in Connecticut, in the Groton/New London area. Outside of New Haven and Hartford -- which are your typical big cities (and there's nothing wrong with that, per se) -- the state is as beautiful as it gets in southern New England. I've also lived in Newport, Rhode Island for a few years, so I know what I'm talking about when it comes to that part of the northeast.
But Connecticut is apparently fast becoming a fiscal train wreck, even though it's one of the richest states in the nation. Unfortunately, the Nutmeg State is also at $74 billion in debt and is teetering on the edge of being in worse financial shape than Puerto Rico:
"Connecticut, the richest state in the nation, has racked up $74 billion in debt. Its finances have more in common with Puerto Rico than Massachusetts, as the home of America’s financial wizards struggles to pay off its massive obligations big as the bills com due on decades of mismanagement.
While ballooning payments for public employees’ guaranteed pension and health benefits for public employees and teachers are the main cause of Connecticut’s fiscal misery, the state continued borrowing with the abandon of a teenager let loose in a Forever 21 with her parent’s credit card. Jobs lost during the recession have not returned. Its youth and future tax base is fleeing for New York and Boston. Fortune 500 companies are following them out of town.
And it could get worse before it gets better."
It all appears to come down to generous (some would say overly generous) state employees' pension plans combined with unrestrained borrowing against anticipated future revenues. But was doing so all that smart? Not looking that way at present.
Why Connecticut Is Collapsing
"Politics is just show business for ugly people."
But Connecticut is apparently fast becoming a fiscal train wreck, even though it's one of the richest states in the nation. Unfortunately, the Nutmeg State is also at $74 billion in debt and is teetering on the edge of being in worse financial shape than Puerto Rico:
"Connecticut, the richest state in the nation, has racked up $74 billion in debt. Its finances have more in common with Puerto Rico than Massachusetts, as the home of America’s financial wizards struggles to pay off its massive obligations big as the bills com due on decades of mismanagement.
While ballooning payments for public employees’ guaranteed pension and health benefits for public employees and teachers are the main cause of Connecticut’s fiscal misery, the state continued borrowing with the abandon of a teenager let loose in a Forever 21 with her parent’s credit card. Jobs lost during the recession have not returned. Its youth and future tax base is fleeing for New York and Boston. Fortune 500 companies are following them out of town.
And it could get worse before it gets better."
It all appears to come down to generous (some would say overly generous) state employees' pension plans combined with unrestrained borrowing against anticipated future revenues. But was doing so all that smart? Not looking that way at present.
Why Connecticut Is Collapsing
"Politics is just show business for ugly people."