New Study: Connecticut Has Second-Worst Economy in the CountryApril 19, 2017
Connecticut ranked ahead of only Michigan in the 2017 version of the ALEC-Laffer State Economic Competitiveness Index.
Another day, another bad ranking for Connecticut’s economy.
This week, the American Legislative Exchange Council (ALEC) released its 2017 ALEC-Laffer State Competitive Index, a ranking of all 50 states for ten-year economic performance and for 2017 economic outlook. Connecticut ranked 49th of 50 in 2005-2015 economic performance, and 46th in 2017 economic outlook.
49TH IN PERFORMANCE
What led ALEC to rank Connecticut second-to-last on economic performance? Poor ten-year growth of the state’s GDP (20.3 percent, ranked 47th of 50) and the outmigration of people from Connecticut (165,000 residents lost in ten years, one of the highest outmigrations in the country).
46TH IN OUTLOOK
What led ALEC to rank Connecticut fifth-to-last on economic outlook for 2017? See for yourself below, but mostly: high taxes, the cost of state workers, and debt.
WILL THE SUN COME OUT TOMORROW?
The budget of Gov. Dan Malloy (D-Conn.) does not address high taxes; in fact, towns and cities have warned they would have to raise property taxes in order to afford the teacher pension costs Malloy wants to pass on to municipalities.
The budget seeks “$1.6 billion in union concessions to close major deficits in the next two-year state budget,” according to CT Mirror budget reporter Keith Phaneuf, but also includes “$800 million for state employee raises.”
As for long-term debt? Malloy is falling short, at least according to the Moody’s Investor Services standards he set for himself and legislators earlier this month.
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