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Connecticut Budget Crisis Could 'Devastate' Towns

Town leaders at a meeting this week said they're worried the deepening budget problems, which include a growing deficit that is expected to balloon to more than $1 billion next year, will mean cuts in town aid.

 

Town leaders are beginning to fret about Connecticut's growing budget problems, raising concerns that the growing deficit - now projected to balloon to more than $1 billion next year - could mean reductions in town aid that the state makes each year to Connecticut's 169 towns.

In a meeting Thursday of the Housatonic Valley Council of towns, municipal leaders learned that the measures being considered by Gov. Dannel P. Malloy to balance the budget could bring steep cuts in state municipal aid, according to the News Times of Danbury.

Most towns in Connecticut each get tens of millions in education and road funds from the state each year and town leaders for years have complained that cutbacks in that aid have already strained local budgets and have forced higher local property taxes. Any additional cuts would be devastating to local communities and could result in layoffs in local school systems, the News Times quoted local leaders as saying.

Gov. Dannel P. Malloy has already cut $170 million in spending in late November, which is the maximum allowed by a governor without legislative approval. 

Will Wilkin December 07, 2012 at 06:30 PM
Malloy's $170 million cuts are equal to about an hour and 15 minutes of America's annual trade deficit. Connecticut's approximately $950 million annual deficit equals about 11 hours of America's ongoing trade deficit. America's biggest export under the bipartisan "free trade" policies has been 6 million manufacturing jobs and 55,000 factories: http://nistmep.blogs.govdelivery.com/2011/04/28/6-million-jobs-lost-42000-factories-closed-its-time-for-a-national-manufacturing-strategy/ A service job economy will never create wealth, that is the job of private sector manufacturing industries. Manufacturing creates not only wealth but also multiplier-effect jobs such as support services and supply chains and the consumer demanded jobs and services built on manufacturing wages. As manufacturing disappears, the wealth disappears, and the remaining service jobs themselves now pay less because they have lost so much of the manufacturing wealth that formerly supported services. The fiscal crises of municipalities & states & federal government are all the results of the offshoring of America's engines of wealth creation. No tax reforms will ever replace that lost wealth, and thus no tax reforms will actually solve our fiscal crises. Until we revive American manufacturing and achieve balanced trade, our problems will continue to deepen, our necessary public sector will continue to be cut, and Americans will continue getting poorer, moreso than we are used to contemplating.
Will Wilkin December 07, 2012 at 06:30 PM
The story I'm telling isn't just the export of jobs and factories. It is also the export of wages, GDP, tax base and long-term industrial capacity itself. When you export the tax base, the result is fiscal crises at all levels of government. All these problems have no automatic correction or recovery. And right now they have Democrats and Republicans in lock step continuation of making it all worse. Even now, Obama is negotiating a Trans Pacific Partnership treaty and a Euro Free Trade Agreement that deepen the loss of US sovereignty, jobs and industries, and long-term competitiveness and chances for prosperity. The Republicans are overjoyed with Obama's trade policies and can't wait to vote yes. For some reason, Americans keep voting for the 2 parties that are literally selling out our country. I would love to be wrong about all this, please somebody prove me wrong. Please show me that one or both of those parties actually cares about the national interest, about the ordinary people in America, and about the long-term health of our economy.
Will Wilkin December 07, 2012 at 06:31 PM
As for the 55,000 factories lost, I realize the link I provided was out of date on that. Here's where I got the latest number: http://www.theamericanconservative.com/articles/what-went-wrong/ EXCERPT: ....the United States since 2000 has lost 6 million manufacturing jobs and 55,000 factories. Where did all those jobs and factories go? We know where. They were outsourced. And in the deindustrialization of America, the Republican Party has been a culpable co-conspirator. Unlike family patriarch Sen. Prescott Bush, who voted with Barry Goldwater and Strom Thurmond against JFK’s free-trade deal, Bush I and II pumped for NAFTA, GATT, the WTO and opening America’s borders to all goods made by our new friends in the People’s Republic of China. Swiftly, U.S. multinationals shut factories here, laid off workers, outsourced production to Asia and China, and brought their finished goods back, tax-free, to sell in the U.S.A. Profits soared, as did the salaries of the outsourcing executives. And their former workers? They headed for the service sector.... EXCERPT

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