And speaking of budgets

Just kidding!

Do you remember – it was just last year – when our governor promised a balanced budget, one paid for by higher taxes and reduced expenses for state employees? 

This budget requires a shared sacrifice.

o   $1.5 billion in taxes of which 81% paid by individuals; 19% by businesses.

o   $1 billion in savings from state employees.

o   $758 million in spending reductions.

Well oops! We have a $300 million deficit and it’s growing. Guess someone forgot to implement that “shared” sacrifice. Malloy denies any connection between raising taxes and lowered revenue, between sweet heart deals with his union supporters and increased spending. “I blame Bush”, he told FWIW’s Frankie Fudrucker.

24 Comments

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24 responses to “And speaking of budgets

  1. wickets

    saw your guvernor on tv just before sandy hit……i was surprised that a state filled with an abundance of mental capital elected such a nitwit

  2. Anonymous

    Malloy and Connecticut – Cloward Piven writ small.

    Barry Soetoro and the USA – Cloward Piven writ large.

  3. Publius

    It is worse than indicated becuse the State does not use generally accepted acccounting principles (GAAP) for its books and records. The structural budget deficit was about $1.5 billion before this recent fiasco. Malloy was hoping to run a surplus which would have allowed the State to gradually move to GAAP over a multi-year time frame in order to hide the fact that CT is in a deep hole. CT is just a microcosm of what is happening at the federal level. Those who use Greece as an example of where we as a country are headed should use, CT, IL or CA because socialism begins at home

  4. Fred2

    To quote instapundit: ” unexpectedly”

  5. Mr. 85 Broad St.

    When I lived in Philly in the 80s, they raised the transit fares to close a budget gap. People stopped riding and the deficit didn’t go away. Had to raise fares a second time. Same thing going to happen here – taxes going to go up again. And don’t forget about that pension shortfall.

  6. burningmadolf

    CT also has the worst in the nation Debt plus Pension Liability to GDP. No governor, rep/dem has the balls to tackle that issue head on.

  7. Is there any indication that as CT digs itself into a deeper financial hole that it might actually lessen or stop the migration of New Yorkers from Westchester County or the city from choosing Fairfield County? I think home shoppers might pause now and weigh their options, where before CT was the obvious choice for those not wanting tax heavy New York.

    • What’s more likely to happen, I think, is that the price differential between Westchester and Fairfield Counties will shrink. In the end, it’s all about monthly payments and as taxes go up, mortgage payments must go down – we’re talking about real people here, not the price-insensitive billionaires who inhabit Democrats’ brains.
      Of course the real danger is that the financial world will figure out that there’s no need to concentrate in the New York area and flee here entirely. That will make the regressives happy – no more rich people to be envious of, the masses all equal in their misery, but some folks won’t be as pleased with the results.

  8. Cos Cobber

    No one kid yourself, its not about NY vs CT, its about the northeast vs Seattle, Denver, Miami, Dallas and Houston.

  9. Libertarian Advocate

    Of course the real danger is that the financial world will figure out that there’s no need to concentrate in the New York area and flee here entirely. That will make the regressives happy – no more rich people to be envious of, the masses all equal in their misery, but some folks won’t be as pleased with the results.

    It’ll make them happy until they can’t fund their social justice programs anymore. Once that happens there’s a very good chance that many very angry dependents wielding torches, pitchforks and rope will be aggressively looking for politicians to social justice. What do you suppose the odds on that are FF?

  10. CC: Maybe, to those who aren’t in the northeast for reasons other than jobs. I could never leave the northeast now – my 94 year old mother, while happy as a clam and active and busy, does love company from her younger daughter often. Then kids and grandkids – can’t be too far away from them. Not next door maybe, but not in Seattle either. Family trumps high prices and taxes. I’ve lived in Denver. No thank you. Seattle, far too liberal for my tastes, and talk about expensive. Ever try and buy a house there? Miami? I’m not hip enough and I like a colder clime anyway. Dallas and Houston, Dallas maybe but Texas doesn’t cotton to ‘ferners coming in and setting up camp. That leaves Bedford and RI for us. Unless I win the PowerBall, then I add Barbados as “primary residence” and send comments from there like “wish you were here”!! :-)

  11. I was thinking the same thing about Greenwich and Westchester prices converging when I read your post about Wall Street bonuses tanking. We have our share of Wall Streeters in Westchester (particularly in towns like Briarcliff and Bronxville) but it’s much less concentrated than Greenwich.

    If Greenwich prices come down to the point where a normal upper middle class family can afford housing there this might be a healthy thing in the long run.

  12. FF

    Libertarian – Reading your posts, it seems more of a fantasy of yours. Send me a note from Galt Gulch, would ya? People have been making this claim for years, most recently after 9-11. Fantasists like yourself forget things like people are breathing, thinking, feeling human beings and not machines of capital. they stay in the NYC area for years because they like it, even with those socialistic taxes and redistributionist Kenyan Marxist Athiesm. If you are here, why do you stay? Texas and Mississippi are calling your name.

  13. Anonymous

    lol. please all the die hard capitalists, buy one way tickets to red states Texas, Utah, Mississippi,

    hey, you guys won North Carolina, i hear Charlotte has an awesome, thriving cultural scene.

    NYC and the northeast will be just fine without the ‘job creators’

    • Really? What will you looters subsist on? Connecticut is already in deep financial trouble even with Fairfield County being soaked – if the high income people flee, do you really think that unemployed machinists in New Britain will make up the difference? The insurance industry has left Hartford, manufacturing has left the state and the Indians have lost a third of their casino business to other states – and that revenue loss is accelerating. The trouble with cannibalism, to quote Margret Thatcher, is that sooner or later you run out of other people to eat.

  14. Cos Cobber

    FF, Rather than ask why we stay (family, still have a good job or perhaps we are waiting to sell!), lets ask why others leave. As I am sure you are aware, CT is a net loser to intrastate migration. The only reason we have positive population growth (most in New England per the last 10 census) is because of foreign immigration.

    According to the tax foundations data, CT is a net loser of taxpayers with most fleeing to Florida. By copy to Richard, the data shows more NYers move to CT than the reverse (no surprise there i suppose – thank u manhattan). EOS, Rhode Island is second to NY as a source of net positive in migration to CT.

    http://interactive.taxfoundation.org/migration/

    So, why could these people voting with their feet be so foolish to leave paradise? Could it be that our state policies – which help many – hurt many as well?

  15. Libertarian Advocate

    FF: By God you liberals are a humorless lot, well, except for Jon Leibowitz; He’s really very funny.

  16. Anonymous

    Questions for FF:
    Why is Connecticut a net out-migration state?
    How come nobody chooses Connecticut to start an operational business – as opposed to a lifestyle biz like a hedge fund?
    How come existing Connecticut businesses, Sikorsky, GE, etc. never consider Connecticut when they are drawing up expansion plans?
    Why doesn’t the Connecticut state gov use GAAP accounting to more accurately reflect its balance sheet and overall financial health? Hint: “Because the fedgov does too.” is not an acceptable answer.

  17. “1.5 billion in taxes of which 81% paid by individuals; 19% by businesses.”
    FIFY:
    1.5 billion in taxes of which 100% is paid by individuals, no matter how you make up the bookkeeping.

  18. jeb

    Yep, thanks Hartford. http://truthinaccounting.org/state-of-states/ Connecticut listed as having highest debt per capital $49,000.

    Can Fairfield County secede from CT?

    So much bloated spending and waste in this state.

  19. GreenITCH

    This is a little long but if you have time, it is really worth a read. Its incredible. ” How a vicious circle of self-interest sank a California city ” from Reuters –

    http://www.reuters.com/article/2012/11/13/us-bernardino-bankrupt-idUSBRE8AC0HP20121113

  20. Cos Cobber

    CF, dont worry too much, the dems have taken note that over the past four years mother printing press in DC continues to hum and yet interest rates and inflation remain in check….and so, with that, i predict that the 2016 or 2020 president (which will be a democrat) will bail out all the states….by then, a dem in the whitehouse will have no choice as IL, CA, CT, NY, NJ, etc will all need a bailout and why not, the other red states cant swing the electoral process anyway.