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Connecticut state budget and finances

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Connecticut budget and finances
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General information
Budget calendar:
Biennial
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Dan Malloy
Financial figures
Total spending (state and federal funds):
$26.4 billion (estimated for 2014)
Per capita spending:
$7,351 (estimated for 2014)
Total state tax collections:
$16.1 billion (2013)
Per capita tax collections:
$4,483 (2013)
State debt:
$112.4 billion (as of 2014)
Per capita state debt:
$31,298 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Connecticut
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total government spending in Connecticut decreased by approximately $1.7 billion, from $28.1 billion in fiscal year 2013 to an estimated $26.4 billion in 2014. This represents a 6 percent decrease. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Connecticut a AA credit rating.[1][2][3]
In fiscal year 2014, total estimated spending in Connecticut amounted to $26.4 billion. Connecticut ranked third in the nation for state debt per capita, which stood at $31,298.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

Total estimated spending in Connecticut in 2014 was $26.4 billion. Estimated per capita spending in Connecticut totaled $7,351 in 2014.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Connecticut $20,938 $5,501 $26,439 3,596,677 $7,350.95
Maine $5,330 $2,696 $8,026 1,330,089 $6,034.18
Massachusetts $41,752 $15,135 $56,887 6,745,408 $8,433.44
New Hampshire $3,375 $1,703 $5,078 1,326,813 $3,827.22
Rhode Island $5,259 $2,543 $7,802 1,055,173 $7,394.05
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Connecticut can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.[3]

In 2013 Connecticut dedicated the largest single portion of its budget to Medicaid at 21.8 percent. The bulk of its budget was dedicated to expenditures classified as "Other."

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Connecticut 14.1% 10.6% 1.4% 21.8% 2.3% 9.7% 40.2%
Maine 16.9% 3.6% 2.3% 32.7% 1.8% 8.2% 34.6%
Massachusetts 11.2% 10.1% 2.7% 18.7% 2.3% 6.6% 48.5%
New Hampshire 23.4% 2.2% 1.7% 25.6% 2% 10% 35%
Rhode Island 14.9% 13% 1.4% 24.8% 2.6% 6.3% 37%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the portion of Connecticut's budget dedicated to transportation increased from 6 percent to 9.7 percent. See the table below for further details (figures are rendered as percents, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percents)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 14.1% 10.6% 1.4% 21.8% 2.3% 9.7% 40.2%
2012 13.9% 10.3% 1.4% 21.4% 2.5% 10.0% 40.6%
2011 14.2% 10.2% 1.6% 21.6% 2.6% 11.7% 38.2%
2010 20.1% 13.9% 2.5% 25.4% 3.4% 9.5% 25.2%
2009 14.6% 10.8% 1.9% 20.9% 2.8% 6.0% 43.0%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "population" and "per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "population" and "per capita revenue" have not been abbreviated).[9]

Total tax collections in Connecticut in 2013 amounted to $16.1 billion. Per capita tax collections in 2013 totaled $4,483, highest among its neighboring states.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Connecticut N/A $6,746,968 $453,112 $7,811,949 $572,628 $551,859 $16,136,516 3,599,341 $4,483.19
Maine $38,636 $1,779,873 $260,918 $1,531,504 $171,987 $101,532 $3,884,450 1,328,702 $2,923.49
Massachusetts $4,795 $7,455,326 $945,922 $12,876,192 $1,888,449 $730,363 $23,901,047 6,708,874 $3,562.60
New Hampshire $400,369 $945,290 $272,852 $99,027 $553,197 $99,368 $2,370,103 1,322,616 $1,791.98
Rhode Island $2,331 $1,516,423 $138,518 $1,088,992 $144,310 $49,859 $2,940,433 1,053,354 $2,791.50
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Connecticut tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. Individual income taxes accounted for 48.4 percent of total state tax collections in Connecticut in 2013.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Connecticut N/A 41.81% 2.81% 48.41% 3.55% 3.42%
Maine 0.99% 45.82% 6.72% 39.43% 4.43% 2.61%
Massachusetts 0.02% 31.19% 3.96% 53.87% 7.90% 3.06%
New Hampshire 16.89% 39.88% 11.51% 4.18% 23.34% 4.19%
Rhode Island 0.08% 51.57% 4.71% 37.04% 4.91% 1.70%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Connecticut budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: HB 5596

Governor Dannel P. Malloy announced his midterm budget adjustment proposal on February 5, 2014. Under the governor's proposal, total state spending for fiscal year 2015 would have equaled approximately $19.03 billion, including $17.50 billion in general funds. Malloy's proposal included a $40 million increase in early childhood and K-12 education expenditures, as well as $51.3 million in new tax cuts.[10]

On May 29, 2014, Malloy signed into law the midterm budget adjustment. Under the adjusted budget, total state appropriations for 2015 equaled $19.14 billion, which was $28.6 million less than under the original enacted biennial budget.[10]


State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Connecticut had a state debt of approximately $112.4 billion. Its state debt per capita was $31,298. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Connecticut $112,372,072,000 $31,298 3
Maine $16,717,250,000 $12,577 35
Massachusetts $129,550,263,000 $19,493 12
New Hampshire $18,425,567,000 $13,951 27
Rhode Island $18,863,153,000 $17,960 16
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Connecticut public pensions and Connecticut public employee salaries

A 2012 report from the Pew Center on the States noted that Connecticut's pension system was funded at 53 percent at the close of fiscal year 2010, well below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

Taking all systems except the Probate Judges and Employees Retirement System (PJERS) into account, the funding ratio for the state's pension programs decreased from 63.28 percent in fiscal year 2008 to 50.61 percent in fiscal year 2012, a decrease of 12.67 percentage points, or 20 percent. Likewise, unfunded liabilities increased from approximately $15.8 billion in fiscal year 2008 to nearly $25 billion in fiscal year 2012.[13][14][15][16][17]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[18][19]

The table below lists the Standard and Poor's credit ratings for Connecticut and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[20]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Connecticut AA AA AA AA AA AA AA AA AA AA AA
Maine AA AA AA AA AA AA AA AA AA- AA- AA
Massachusetts AA+ AA+ AA+ AA AA AA AA AA AA AA AA-
New Hampshire AA AA AA AA AA AA AA AA AA AA AA
Rhode Island AA AA AA AA AA AA AA AA AA AA AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[21]

The table below notes what share of Connecticut’s general revenues came from the federal government in 2012. That year, Connecticut received approximately $5.8 in federal aid, 23.6 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[21]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Connecticut $5,781,844 23.59% 47
Maine $2,883,526 36.15% 12
Massachusetts $12,920,153 28.80% 36
New Hampshire $1,693,289 29.02% 34
Rhode Island $2,310,656 33.76% 23
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Connecticut received $2,347,030,000.00 in federal funding between February 2009 and June 2013.[22]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[23][24]

  1. Budget instructions are sent to state agencies in July.
  2. State agencies submit their budget requests to the governor in September.
  3. Agency hearings are held in January.
  4. Public hearings are held from February through June.
  5. The governor submits his or her proposed budget to the state legislature in February.
  6. The legislature adopts a budget in May or June. A simple majority is required to pass a budget.

Connecticut is one of 44 states in which the governor has line item veto authority.[24]

The governor is legally required to submit a balanced budget. Likewise, the legislature must adopt a balanced budget.[24]

Agencies, offices and committees

There is only one standing committee in the Connecticut General Assembly that deals with budget and finance matters:

  1. Finance, Revenue and Bonding Committee, Connecticut General Assembly

The Connecticut Comptroller acts as the state's accountant, managing accounts payable, preparing financial reports, and monitoring the finances of state agencies. The comptroller is elected ever four years in midterm election years and is a partisan office.

The Connecticut Treasurer acts as the state's chief financial officer, overseeing state funds and investments and maintaining unclaimed property. The treasurer is elected in partisan elections and does not have a term limit.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[25] According to the report, Connecticut received a grade of B and a numerical score of 83, indicating that Connecticut was "advancing." in terms of transparency regarding state spending.[25]

Budget and finance ballot measures

See also: Spending and finance on the ballot and List of Connecticut ballot measures

Ballotpedia has tracked 1 ballot measures relating to state and local budget and financial matters in Connecticut.

  1. Connecticut Limit on State Expenditures, Question 2 (1992)

Recent news

This section displays the most recent stories in a Google news search for the term "Connecticut + budget"

All stories may not be relevant to this page due to the nature of the search engine.

Connecticut state budget news feed

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Contact information

Office of Policy and Management; Budget and Financial Management Division
450 Capitol Ave.
Hartford, CT 06106
Telephone: 860-418-6272
Fax: 860-418-6490

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States "Widening Gap Update: Connecticut," June 18, 2012
  13. Connecticut State Employees Retirement System, "Report of the Actuary on the Valuation, Prepared as of June 30, 2012," accessed November 1, 2013
  14. Connecticut Teachers' Retirement System, "Actuarial Valuation as of June 30, 2012," accessed November 1, 2013
  15. Connecticut Judges, Family Support Magistrates, and Compensation Commissioners Retirement System, "Report of the Actuary on the Valuation, Prepared as of June 30, 2012," accessed November 1, 2013
  16. Connecticut Municipal Employees' Retirement System, "Report on the Biennial Valuation of the Connecticut Municipal Employees Retirement System, Prepared as of July 1, 2012," accessed November 1, 2013
  17. Connecticut Probate Judges and Employees Retirement System, "Report of the Actuary on the Valuation, Prepared as of December 31, 2011
  18. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  19. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  20. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  21. 21.0 21.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  22. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  23. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  24. 24.0 24.1 24.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  25. 25.0 25.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014