Monday, November 17, 2008

Informal notes on today's "state of the State"

This info was included in an email I received today. The bullet points are notes taken from a "state of the State" given today by the executive branch:

- Revenue declines (state sales tax, corporate tax, casino revenues, etc) are all trending downward at an “alarming” rate.

- The Dow is down roughly 35% from a year ago, the financial industry no longer exists as we once knew. Declines in Wall St. revenues, including year-end bonuses, will have a significant negative impact on Connecticut revenues.

- Since July 1, 2008, state revenues have declined by $370 million (from projections).

- Declines are evident across all industries, bar none.

- We are not in a period of low-growth income (personal), we are in a period of no-growth income.

- Every indication that this trend will continue. Economists do not believe that we will see the “bottom” until 3rd or 4th quarter of 2009.

- The state is projecting a deficit of $2.6 billion and $3.3 billion in the next two fiscal years – for maintenance only budget (i.e. no new spending).

- Unemployment in CT rose from 6.1% to 6.6% in one weekend (last week).
State has not seen this sort of decline since the Great Depression.

- On Monday, Nov. 24, 2009 special session will convene to address current budget shortfalls. This will be the “easy” part.

- State is scrutinizing all aspect of budget (expenditures), talking to unions.

- Rainy day fund is at $1.2 to $1.3 billion, not nearly enough to cover shortfalls.

- Governor feels any tax increase is the worst thing the state could do at this time.

So I guess I wasn't too far off when I suggested CT may experience actual wage reductions over the next few years. As of today, we apparently have no income growth.

Tim White


Anonymous said...

C'mon this is the perfect time to spend money on a turf field, a dog park, and nice fancy sidewalks...maybe we can hire some high priced consultants for a spiffy new "strategic plan"---we need the same sort sort of strategery here in Cheshire that works so well in Washington, DC

Anonymous said...

The number of Cheshire students receiving free or reduced lunches has risen 29.5% from last year's numbers as was reported in the Record Journal 11-15.

Anonymous said...

You forgot the West Main Streetscape.

All it would take is for about 8 owners to fix up their own property. Why should we care if they don't.

Now it's up to !,000,000 to waste on this.

The owners should fix their own places. With ownership comes responsibility , that's the way capitalism is suppose to work.

Anonymous said...

To hell with "personal responsibility"---- it's time to "spread the wealth" we don't have