Connecticut residents and business people probably don’t need any more evidence as to the well discussed fiscal issues for the state. However, Connecticut landing just one notch below the bottom of the barrel in a new report that grades the fiscal health of all states. The Nutmeg State has recently ranked 49th for fiscal health by The Mercatus Center at George Mason University.
The ranking is based on its solvency in five separate categories.
Connecticut has between 0.42 and 1.05 times the cash needed to cover short-term obligations, well below the US average.
Revenues only cover 92 percent of expenses, with a worsening net position of –$693 per capita. In the long run, Connecticut’s negative net asset ratio of 1.71 points to the use of debt and large unfunded obligations.
Long-term liabilities are higher than the national average, at 230 percent of total assets, or $17,418 per capita.
Total unfunded pension liabilities that are guaranteed to be paid are $121.65 billion, or 48 percent of state personal income.
OPEB [other post-employment benefits, example healthcare costs] are $21.89 billion, or 9 percent of state personal income.
Only Illinois was ranked below Connecticut, while neighboring Massachusetts was listed at 47th the Commonwealth’s Governor’s re-election advertising cites a one billion budget surplus.
The top five most fiscally solvent states reported were Nebraska, South Dakota, Tennessee, Florida and Oklahoma. The bottom five are Kentucky, Massachusetts, New Jersey, Connecticut and Illinois. The fiver year tracking shows that Connecticut was among states that consistently performed poorly.
SPRINGFIELD, MA., LEDYARD: While the Connecticut and now Massachusetts casinos go head to head, the tax coffers of both states remain big winners.
The newly opened [August 24] MGM Casino in Springfield reported $9,456,976.90 in gross gaming revenue in the month of August.
Slot machines generated the overwhelming share of the take, with $7,347,491.15 in revenues while table games generated $2,109,485.75. MGM reportedly drew 150,000 visitors during its first three days and Massachusetts reported it earned $2,364,244. in taxes for its take.
Meanwhile in Ledyard the Mohegan Sun and Foxwoods Casino reported dips in slot revenue.
By Mitchell Young
WINDSOR LOCKS: A potential $4 billion state budget deficit wasn’t enough to persuade the Malloy administration to end Connecticut’s subsidy of flights from Bradley International Airport to Dublin, Ireland.
A new agreement with Aer Lingus a division of the International Airlines Group is reducing the subsidy from Connecticut, but the airline is likely to receive more than $13.3 million during the next few years from the state in subsidies, landing fee reductions and marketing support. By 2020 the state will likely have paid Aer-Lingus more than $30 million in direct subsidy, reduced fees and marketing support to the airline.
International Airlines Group based in London is the parent company of Aer Lingus, British Airways, Iberia and Vueling. One of the world's largest airline groups with 546 aircraft flying to 279 destinations IAG carries 105 million passengers each year and produced more than $2 billion in profit on $23 billion in sales in 2017.
In a new report commissioned by American Express shows women across the state are making a big impact on the Nutmeg economy – but the news isn’t entirely good.
Connecticut has an estimated 112,500 women-owned businesses, employing 95,500 and attributing to roughly $16,496,400,000 according to the eighth annual State of Women-Owned Businesses Report. The Amex report is based on analyzing data from the U.S. Census Bureau’s Survey of Business Owners and factoring in relative changes in Gross Domestic Product (GDP).
The report tracks to 1972, the first time the U.S. Census Bureau provided data on minority- and women-owned businesses.
HARTFORD: As a new campaign for governor and competing visons for Connecticut take hold, the Connecticut Business and Industry Association [CBIA] is making its voice known. The association has launched a statewide advertising campaign, focused on “raising public awareness around the issues that most impact the state’s economic future and job growth.”
According to the association “high taxes and a sluggish economy are the top concerns for Connecticut residents, and must be priorities for lawmakers and candidates for elected office.”
Dubbed “The Fix Connecticut” campaign will run into the 2019 General Assembly session and beyond. It features digital, broadcast, and print advertising.