By Joel Schiavone
Connecticut State expenses for employee benefits current and past have gone from 10% of the budget to 30% over the past few years. Through a variety of accounting tricks, borrowing monies, and simply ignoring pension obligations they have submitted a break even State budget for the past eight years, as required by law, knowing full well that they would lead to large illegal deficits.
For more than eighty years every Connecticut Governor has failed to do this by not paying their full share, and in some cases no share, of these benefits and passing along these costs to future generations. They finally have decided that they can’t keep going with their illegal deficit budgets and are now trying to deal with $75 billion in past service liabilities.
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.
The streets of the City of New Haven are well packed with young people and even suburbanites for the first time in decades. Apartment rehabs and new complexes have sprung up across the Elm City. The numbers are real and big, to the tune of hundreds of millions of dollars in the past few years alone, nearly all paying full taxes. A small but growing cadre of tech businesses, biotech and software have taken root and a “start-up” culture has begun to emerge to fill those apartments.
By Joel Schiavone
Enjoy your summer. This is the lull before the storm. Campaigning begins in earnest for state and local elections which will culminate in November. What will happen after that will be extraordinary. Both New Haven and the
State of Connecticut have passed budgets that everybody knows are millions of dollars out of balance. The City of New Haven passed a budgetwhich does not reflect any changes, any reductions in costs, salaries, or employee lay-offs. Sometime in January all these plus increased taxes will be impacted significantly. The full enormity of these actions will be clarified when we finally learn how large the reductions in the State financial support will be.
OPINION: By Mitchell Young
Or does he?
Webster Bank Chairman and former CEO James Smith said on April 6 he wants to be Connecticut’s next Governor, but he still hasn’t announced.
This is nothing new.
Smith has mused about a run for Governor for years. Smith conservative by nature, has let his smarter angels win and he has steered himself away from what would most likely be capping his successful business career with a potentially humiliating political loss.
Webster insiders had told us that Smith’s move last fall to executive Chairman made that choice more likely. When we questioned if Smith had the raw ego for a governor’s run, we were assured he did. He has however, let many months go by without declaring in what was clearly an exceptionally open Republican race, with a wide lane for a powerful well known and well-thought of businessman, like Smith.
|Joel Schiavone in New Haven magazine's first profile in 2007, on the Chaple Street that he layed the foundation for.|
By Joel Schiavone
2018 is turning out to be a lot like 1979. For anyone younger than 60 downtown New Haven was closed. The Taft, the Shubert, the College Music hall, virtually every restaurant except for Claire’s and Louis’s lunch were gone, retail stores except for J press a floundering Yale coop and a couple of odds and ends on Broadway were shuttered. Yale closed off access to its cm[us with locks, gates, large black metal panels on all its fences and left New Haven to die.
What’s this got to do with the busy exciting place still referred to as downtown? Nothing on the surface but lurking under the surface - lots of problems. The state of Connecticut is bankrupt, not legally but the walking dead. Fundamentally not working except to generate huge deficits every year. Structurally unsound and waiting for the undertaker. New Haven the city is not far behind with fewer and fewer employees, less and less money, an overwhelming failed financial structure and most importantly no sense from anyone that there is any problem.
The Mayor’s annual address talked about improving infrastructure, better schools and other impossible dreams without any suggestion about how to do any of this. Its Citizen neighborhoods such as Chapel West and The Downtown are cleaning streets, fighting crime, and encouraging neighborhood activities paid for with increased tax receipts for their special districts - a recognition that the city has no money and ability to do most anything for its citizens and their neighborhoods and they’ll have to do it themselves
Yale is embarked on its absurd quest to bring shopping back to New Haven subsidizing many of its retailers and restaurants to hide the reality that retail in the United States, never mind a tiny town such as New Haven is disappearing as fast as you can say Amazon. In several years when the Yale Corporation finally wakes up it will realize that the policies of Bruce Alexander the head of Yale’s New Haven and State Affairs and Campus Development office are as misguided as those of former Mayor Richard lee. Repurposing downtown malls has proven to so far to be impossible.
Like the 1970s we are now completely adrift. Forgetting the growing political and budgetary Washington malaise, 40% of our operating budget in New Haven comes from the state of Connecticut. The state will do its best to push the financial pension mess back to the towns and municipalities meaning all of the outrageous pensions will go back to the cities in a desperate attempt to protect the pensions of the state employees. Cities which don’t have enough money to replace street lights will have to go bankrupt. A familiar process in the private sector and well understood: an unfamiliar process for government.
However it happens, through negotiation or bankruptcy, eventually all the excesses of the past 30 years will be wiped out and life will start over again. The era of the unsupportable government pensions, salaries and perquisites will be over. Police retirees will be selling their boats and vacation homes and learning to live like everyone else.
Ok argue about the details but it is certain that for the next 20-30 years this whole scenario will play out and completely change most of our lives. The bad news-without the presence of any effective government it will be virtually impossible to get anything done. The good news is the recognition that the private sector is the only group that can get anything done. Aside from enriching themselves it is hard to identify anything government accomplished for the past 30 years and lots of things they have negatively impacted.
Progress in a time and place a long time ago came from cooperation between the private sector, with the assistance of an effective Mayor such as Ben DeLieto and a devoted development team, all guided by a shared vision, albeit without a formal plan. Recreate a vibrant downtown – again a shared vision and obviously one that worked.
After the Delieto years Government and the private sector evaporated. In the vacuum Yale exercised its fierce self-interest and took over as much of the downtown as possible, Retail and apartments were now one of their overarching objectives as they purchased multiple buildings in downtown. But the vision sustained and is still continuing as new apartments and restaurants are appearing every month.