Saturday, May 14, 2016

What Is To Like About The Connecticut Democrats Fourth Deficit Budget?

Not much.  In trying to understand as an economist and as a taxpayer a complex $20 billion dollar budget in 48 hours or less, there is not much to like about this budget.  Nor did I like the past Connecticut Democrat Party/Malloy developed deficit ridden budgets.
This budget again lacked any input from the Republicans who represent a large part of the state.
This budget in theory does not raise any taxes however it again puts off the payments of GAAP debt for yet another year.  This only increases the interest payments the state must make in the future.
This budget also takes over more local control from cities and towns by creating in 2018 Regional Education Service Centers that will force cities and towns to consolidate human resources, finance and technology divisions.  This was done with no input from the 169 towns and cities in our state.
This budget has built in deficits in it due to the apparent creation of supposed savings and shifting of budget items around.  If you did this in private business you would probably be arrested for accounting fraud.  This is a well known magic trick of the Connecticut Democrat Party to help continue their economic debacle.  There will be no increased savings nor lack of spending.
This budget caps non union pensions at a mere $125,000 a year.  I am curious as to how many middle class citizens in the state receive this type of pension or any type of pension from their employer?
This budget also satisfies long time Democrat controlled cities by allowing Bridgeport to defer part of their pension payments into the state run pension system for municipal workers for two years  and Middletown receives $2 million dollars more in funding through the implementer rat function of the budget bill.  Political favors given without anyone knowing about it in an implementer bill is known as a rat.  Again in private business this amounts to bribery. 
What is to like about the Connecticut Democrats fourth budget?  Not much.  It is more of the same with the exceptions of cutting some spending.  But there was once again no structural reforms in the way the state does business.  Connecticut still has massive unfunded short and long term debt.  Depending on how one views it it is between $44 billion dollars and $80 billion dollars (figuring in long term benefit and pension obligations).  This economic issue was still not addressed nor will it ever be addressed with the continuing one party rule of the Connecticut Democrat Party.
I do not like this budget.  It is more of the same.  The Economic Armageddon is fast approaching thanks to the Connecticut Democrat Party.

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