Hair by Donald™
Frantz on the state of the state: “It can’t get worse than this”.
Filed under Uncategorized
Did he really say that? He’s always scared me and now I’m concerned!
One of the surest and quickest way to save this state is to reintroduce no state income taxes and no death tax. Put the tax back on the dividend sorry Lowell
Is he talking about his hair?
He and The Donald belong to the same elite chapter of Hair Club for Men.
He can’t be talking about Wrong-way Maynard. After an accident this summer, moving furniture at 2:30 in the morning, he was practically dead but as time went on showed up in Hartford with the other zombies to keep his pension and medical…for life.
The other evening he was going home on the wrong side of the road and nearly killed himself and the person he hit. Both cars wee totaled. The state was VERY slow to “investigate” and now he is lawyered up so nothing will happen except that Looney can keep voting for him and the taxpayers will have another deadbeat to pay, forever.
Hartford. The Cess-pool of the East .
It will get worse. CT is insolvent as currently configured. The state has yet to fully adopt GAAP accounting (Generally Accepted Accounting Principles), the only state not to do so. There is a structural budget gap that at last count was hovering around $1 billion (on a $20 billion budget). This structural gap is in addition to any current year budget hole.
The state does not reserve for OPRB (Other Post Retirement Benefits) but simply pays as it goes. These costs are mainly for healthcare for covered state employees in retirement. This is an issue as big as the underfunded pensions.
The State uses some of the highest assumed returns on their pension funds in the country, particularly the teacher’s pension fund which uses an assumed return of 8.5%. Without an eye glazing lecture on pension accounting, the state pension fund is allowed to use this return to calculate the amount of money that the state has to fund in order to meet its pension obligations in the future and also the % funding of the pension fund itself (the discounting factor). The higher the rate the smaller the net present value of the liability is and the lower the amount of money that is required to be funded from current revenues to meet future obligations. In a ZIRP (zero interest policy) environment that is approaching its 8 year anniversary, it is extremely difficult to hit an 8.5% return target over multiple years without taking large amounts of risk, which in fact CT and money other public pension plans do. The pension accounting allows you to assume you earn 8.5% every year even if you don’t ( see eye glazing comment above) with the difference accruing as a lower % of funding (80% is considered the minimum benchmark). CT falls in 48th place with a funding ratio of 50.4% (most recent plan year ended 2014), topped only by Kentucky @ 45% and Illinois @ 39.3%. Median for all states was 70%.
The sideways markets for the past 2 years combined with abysmal hedge fund returns will only make things worse for CT unless annual funding picks up big time. To do so, would require a significant re allocation of tax revenues from other essential BS or go back into the tax well yet again. The 3rd choice of restructuring the plans has no political backing by the democratically controlled legislature and recent negotiations with SEBAC (the state union bargaining unit) has contractually put pension reform on the back burner until 2022.
Yes Mr. Frantz it will get worse. I am sure you won’t notice while comfortably tucked into you nice Greenwich estate with lawyers and accountants feverishly working to keep your capital intact, but at some point you will be the last patsy tasked with turning out the lights.
Publius for Governor
You fail to recall that when Rowland headed off to the clinker, he turned a billion and a half surplus over to Jodi Rell who blew it in no time.
Mr. Frantz is one of the few in Hartford who is not on the take and works pretty hard to keep the entire state from turning into one big Bridgeport.
GAAP? That is the space between No-Gimmicks Malloy’s ears.
Unfunded pensions? Danny has a plan for that, unlike the “other guy”…more premium bonds.
FSBO is the only real cure and you better get on the market quickly before you are saying Governor Kennedy!
Your confirming the low bar of elected officials, works hard and not on the take. Most of the great unwashed that I know work hard and are not on the take and would think it odd that they would be praised for those character traits. As for the state being one big Bridgeport, we are. You just to need to get out of your comfort zone and walk around a bit. The view from SWFC is foggy at best.
He will certainly be proved wrong
No worries, he’s quite used to that.
Frantz is pointing out the state is in bad shape and we need to do something about it and your knocking him? You guys are knocking him for being successful and paying taxes? Your saying he’s going to be proven wrong? I don’t think his point was that the state is in good shape!
Johnny, you are misunderstanding CF’s post and the others here. we all agree with frantz. our quibble however is that is going to get worse and that we haven’t bottomed out yet as frantz stated.
CC – Fair enough on that point, but Pubs rant, well, just seemed like a low blow towards a guy who’s on “our team”… “Yes Mr. Frantz it will get worse. I am sure you won’t notice while comfortably tucked into you nice Greenwich estate with lawyers and accountants feverishly working to keep your capital intact, but at some point you will be the last patsy tasked with turning out the lights”
That’s how I took the post, too, CC. Frantz is an OK guy. As for Dannel and his corrupt reptilian cronies in Hartford, may a camel perform rude acts in their mouths.
Thank you CC. Johnny, what he said.
You know what he pays in taxes and/or his to rate?
One way to make sure it gets better at some point is elect Frantz as Governor!
Please….how is he any different from the dems? Didn’t he. It’d with them to take away our gun rights? Where’s the difference?
I like the straight talk with facts
Agreed: Frantz should be Governor. Has anyone approached him? Will he run?
What’s up with the hair???
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