A myriad of factors have contributed to the current budget crisis in Connecticut. Short-term fixes, particularly arbitrary austerity, will exacerbate these challenges and hurt long-term prosperity. Connecticut needs a budget that starts to address these underlying issues and puts the state on a path to strong, sustainable, and equitable economic growth.
Fortunately, Connecticut can harness its remarkable economic strengths as it invests in a brighter future. Connecticut’s residents remain on average some of the most prosperous in the country, the state is an attractive place to do business, and low-interest rates and strong borrower ratings mean that Connecticut has some breathing room as it seeks structural solutions.
This brief outlines some of the state’s key structural challenges, highlights the strengths the state can leverage in addressing those challenges, and offers some guiding principles for navigating the challenging road ahead.