Fiscal Challenges

In November 2014, Connecticut’s Office of Policy and Management Secretary Ben Barnes stated Connecticut had “entered into a period of permanent fiscal crisis.”

Years later, Connecticut’s “period of permanent fiscal crisis” has not subsided and continues to present state and local policymakers with difficult decisions. Between shrinking revenues from taxes, and the continued growth of fixed costs, including long-term pension and debt obligations, Connecticut faces multiple fiscal challenges that could pose problems to the State’s financial and economic health for decades.

Over the past several years, in an effort to address its fiscal challenges Connecticut has negotiated concessions deals with the unions that represent state employees, reduced state services and the size of the state government workforce, begun contributing its full annually required contribution (ARC) to its two largest pension systems, and attempted to increase state revenues by passing two of the largest tax increases in state history.

Despite taking these steps, however, Connecticut has ended the last three fiscal years — and five of the last 10 fiscal years — with a budget deficit and significant unfunded long-term liabilities.

Each section of this website examines a piece of Connecticut’s fiscal puzzle, and the challenges it poses to the state’s financial and economic health. Explore each section to learn more about Connecticut’s: