For the second consecutive year, Connecticut will spend a sizable amount of money to pay down its pension obligations.
While last year”™s payment to Connecticut”™s employee retirement plan ”“ the first in the state”™s history ”“ was $61.6 million, this year”™s will be in excess of $1.2 billion, according to Connecticut Treasurer Shawn Wooden. The money will be paid either to the same plan or to the teachers”™ pension fund.
“The latest budget projections are that Connecticut will end fiscal year 2021 with a $157 million surplus, as well as an historically high rainy day fund balance of nearly $4.38 billion,” Wooden remarked. Since that amount will exceed the 15% volatility cap threshold, the excess must be transferred to one of the two funds.
“The historic growth of the state”™s rainy day fund is a direct result of Connecticut practicing smart fiscal discipline over the last few years,” the treasurer said. “It now remains our job as state leaders to stay the course and pave the way towards a sustainable economic recovery that reaches everyone across our state, especially those who continue to hurt as we recover from the effects of the pandemic.”
As of June 30, Wooden reported, Connecticut”™s overall available cash is $11.6 billion with the common cash pool at $10 billion.
The latest data follows on the heels of the launch of the CT Baby Bonds program, designed to address economic disparities and narrow the wealth gap.
