Saturday, November 23, 2019

Connecticut's Constant Pension Crisis

Connecticut has had a constant crisis when it comes to trying fund its overly generous pensions to state and local management and union workers along with teachers and judges.  A recent report by Pro Bono Public Pensions and written about by the Yankee Institute (https://yankeeinstitute.org/2019/11/21/connecticut-state-and-local-unfunded-retirement-obligations-top-124-billion/ ) that was issued this week stated that Connecticut has a $99.5 billion dollar unfunded pension liability and other post-employment benefits along with $22 billion dollars that is owned by Connecticut's municipalities for the same areas. These pension obligations are for 99,594 active and retired state employees and 87,952 active and retired teachers according to the state while also by law the state  has to maintain pension funds for approximately 17,000 municipal employees and 493 judges, family support magistrates and compensation commissioners.
If you do the math 205,039 past and present state and municipal employees will cost Connecticut Taxpayers approximately $125,000,000,000 in present and future tax dollars since the individuals getting the pensions and retirement benefits contribute very little to their plans.  Thus the massive under funding of the plans.  Connecticut has a total population of roughly 3,573,000 as of 2018.  Thus almost 20% of the state budget now goes for salaries, benefits and pensions for roughly a half of per cent of the population.  This unfunded liability represents almost seven complete state budgets or in other words if the state just spent every dollar from its budget on nothing else but these liabilities it would take roughly 14 years for this obligation to paid off (this also does not take into economic account all of the other state debt and bonds it has which is roughly another $40 billion dollars).
Putting it is even more simpler terms each citizen of the state would owe about $55,000 to the state for their share of this debt plus the other debts and liabilities the state owes.  The Connecticut Democrat Party could easily pass a new unfunded liability tax on each Connecticut Taxpayer based on income while exempting their own political ruling class to help pay for this short fall. 
Connecticut's pension crisis is a real economic crisis.  It has been pushed aside for years.
As a Connecticut Taxpayer I wonder along with many others what is the justification for these high state management, union, judges and teachers salaries, benefits and pensions?  I see many political appointments to these jobs when a Democrat candidate loses an election and or "retires" from public office (think of Ben Barnes).  Are they bettering the state?  I really can't see it since Connecticut is now roughly $140 billion dollars in debt and last or nearly last in the country in most economic and business categories while in the top five states for highest taxes in the country.  I will assume that this is what these 205,039 past and present state and municipal employees have helped to develop and nurture over the years-what amounts to being a toxic economy.
What is the solution?  Obviously the Connecticut Democrat Party along their media cheerleaders believe higher taxes in any and all forms will resolve this problem.  But it hasn't and will not in the future.  The current situation is economically unsustainable while Connecticut still has yet to recover completely from the 2008 recession. 
Something is radically wrong with this system of salaries, benefits and pensions.  It is unfair to the remaining legal Connecticut Taxpayers who are serfs in this Connecticut Democrat Party serfdom. 
We should not have to live and work in these economic conditions.  Fix the system seems always to fall on deaf ears.  How about solving it today? 

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