Check out this latest information about the state budget and what Democrats are saying about it.
Myth:
We ended last year with a $450 million surplus.
Truth:
We are still facing yearly deficits of more than $3 billion starting next year and beyond. Two days ago people woke up and read in the newspaper that we have a $450 million surplus on one page. They turned the page and saw Democrats talking about whether it is better to increase the sales tax or the income tax. This is why people get so frustrated with government. We are papering over the deficit with accounting schemes, gimmicks, temporary revenue, and borrowing. Instead, we should be finding ways to make government more efficient – consolidating agencies and eliminating wasteful spending. There is no surplus!
Myth:
We are cutting borrowing in half. Today, we are reading that the state is cutting borrowing in half as a result of last year’s “surplus”.
Truth:
In a span of eight months, Democrats borrowed $1.9 billion for day-to-day expenses to “fix” the state budget deficit. In her message about the “surplus”, the Comptroller also stated that we would still have to borrow $700 million more to keep this year’s budget balanced. If you gain 30 pounds in a year, and you lose 15 pounds the next year, you haven’t cut your weight in half. But, that’s exactly what some people are saying about how much the state is borrowing.
Other facts about Connecticut’s borrowing:
- Highest per capita debt in the country, at $4,859. The next closest state was Mass., at $4,606.
- 12 cents of every tax dollar goes to pay for borrowing.
- Annual debt payments increased by 633% over the past 20 years.
- Fitch Rating Agency downgraded Connecticut at the end of May.
