CT is Among 24 States Seeing Weak Revenues, Highest Number Since Recession
/Connecticut is not alone. According to the National Association of State Budget Officers’ (NASBO) annual state spending survey, half of all states saw revenues come in lower than budgeted in fiscal 2016 and 24 states – including Connecticut - are seeing those weak revenue conditions carry into fiscal 2017.
That is the highest number of states falling short of revenue projections since 36 states budgets missed their mark in 2010, according to the NASBO report and Governing. As a result, 19 states made mid-year budget cuts in 2016, totaling $2.8 billion, Connecticut among them. That number of states “is historically high outside of a recessionary period,” according to the report. The revenue slowdown is caused mainly by slow income tax growth, even slower sales tax growth and an outright decline in corporate tax revenue, the report explains, stating that “progress since the Great Recession has been uneven, and many states are seeing softening state tax collections.”
Overall, state spending totaled $786 billion last fiscal year, a 3.7 percent annual increase. Although it marks the seventh straight year of spending growth, it represents a slowdown from fiscal 2015 when spending increased by 4.4 percent.
“Weaker-than-anticipated revenue collections and resulting budget gaps in fiscal 2016 led some states to cut spending during the year,” the report indicated, with overall spending increasing just 1.8 percent to $781 billion in fiscal 2016, compared with the previous year’s growth of 5 percent. When accounting for inflation, 32 states are still spending less than they did before the Great Recession and total state spending also has yet to surpass pre-recession levels. Across the states, cuts enacted by legislatures come most often in K-12 education, an “all other” category, followed by Medicaid, higher education and corrections, according to data compiled for the NASBO report.
The state has an estimated $1.3 billion or $1.5 billion budget deficit, according to reports from the governor’s Office of Policy and Management and the legislature’s nonpartisan Office of Fiscal Analysis, CTNewsJunkie reported recently.
“Certainly a recession is coming sometime soon,” said NASBO President-elect Michael Cohen, who is also California’s finance director, told Governing. “But I think economists in all of the state offices would tell you that’s a really hard economic forecasting [task] of predicting when that’s going to happen.” NASBO had previously predicted that fiscal 2016 would mark the full recovery of state budgets from the recession, but the cutbacks and increased inflation has delayed that at least another year.
The report indicates that eight (including energy-producing states like Alaska, North Dakota and Oklahoma) planned to spend less in 2017, and 11 states planned to up their spending by 6 percent or more next year. In those states, sales tax increases have improved their revenue with Louisiana, for example, anticipating a 17 percent increase in revenue, driven by an expected $800 million increase in sales tax collections.
Most states have focused on strengthening their rainy day funds, according to the report, though some states – particularly energy-producing ones – have had to tap their reserves to help address budget shortfalls. Twenty-nine states increased their rainy day fund balances in fiscal 2016, and 25 states project increases in fiscal 2017. Since aggregate rainy day fund levels hit a recent low in fiscal 2010, 40 states had increased their amounts as of the end of fiscal 2016, at least in nominal terms, the report said.
“States will also have to contend with rising spending demands in areas such as health care and education, long-term pressures such as pensions and infrastructure, and increasing federal uncertainty,” the report predicted, “particularly concerning the prospects of tax reform and health care policy. In this environment, states are likely to be cautious in their spending and revenue forecasts, as they continue to focus on ensuring structurally balanced budgets.”
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reening, including coverage for ultrasound and MRI screening. Through volunteer efforts, Ashley has advanced legislative efforts for ‘Are You Dense Advocacy’ to ensure that women with dense breast tissue have access to an early breast cancer diagnosis. She helped form the Danny Gilman Scholarship in memory of one of their peers. Ashley serves as President of the Association of Connecticut Lobbyists.

The STSI's 107 individual indicators are sorted into five composites: Research and Development Inputs, Risk Capital and Entrepreneurial Infrastructure, Human Capital Investment, Technology and Science Workforce, and Technology Concentration and Dynamism. The report indicated that "Connecticut showed major improvement in the Technology Concentration and Dynamism index, going from 21st to 10th. This dramatic rise marks one of the larger overall changes on this index. While modest increases were seen in the Research and Development Inputs index and Human Capital Investment index, these two indices have a much heavier focus on stock measures, and Connecticut’s aerospace and defense sectors help anchor the state’s performance in these areas."
In the Human Capital Investment composite index, Connecticut ranked third, as it did in 2014 and 2012, after ranking fifth in 2010. In Research & Development, Connecticut placed eighth, its second highest finish, after ranking tenth, seventh and seventh in previous indexes. Connecticut ranked 11th in Risk Capital and Entrepreneurial Infrastructure, up from 14th two years ago, but not as high as sixth place in 2012 and third in 2010.


Connecticut's favorite Halloween candy is Almond Joy, with 2,619 pounds of it, on average, ordered each year, the website indicated. Milky Way is Connecticut's second favorite Halloween candy, with 1,366 pounds ordered. M&M's placed third, at 910 pounds on average.

Recent articles by The New York Times and Atlantic are referred to, noting that they also reflected poorly on the state’s current condition. National Review adds to the journalistic observations of a state filled with seemingly intractable dilemmas, noting that “Connecticut’s tax system is currently so dependent on the incomes of Fairfield County high-earners — as Governor Malloy has often made clear — that even the slightest variations can trigger a budget crisis.” The article adds, however, that “finance lies somewhere near the bottom of a long list of factors in explaining the current state of Connecticut.”
The U.S. Department of Education July 2016 Data Point report from the National Center for Education Statistics includes data from the School Crime Supplement (SCS) to the National Crime Victimization Survey, a nationally representative sample survey of students ages 12 through 18, which were used to analyze trends in hate-related words. The SCS study is completed every other year.
oped by the federal Health Resources and Services Administration notes that “indirect bullying” includes “rumor spreading or encouraging others to exclude a peer.” Bullying is described as “a public health problem and requires a coordinated community response.”



mission,” said Ted Carroll, President of Leadership Greater Hartford. “It is important that our brand reflect the organization we have become and where we will continue to be headed in the future - making our communities better and stronger.”