Sen. Boucher’s Statement on Negative Outlook of CT Bonds

July 2, 2013

The Fitch rating agency today downgraded the outlook on State of Connecticut General Obligation bonds to “negative.” In addition to Fitch downgrading Connecticut’s outlook, Moody’s Investors Service downgraded Connecticut’s bond rating in January 2012 from Aa2 to Aa3 where it remains today (18 months later). State Senator Toni Boucher (R-Wilton) released the following statement in response to the latest negative outlook:

“The Fitch report quite properly notes that Connecticut has tied its own hands at a time of lingering uncertainty. It notes that we balanced the budget with gimmicks, our debt is growing and that one-party rule has failed to rebuild the state’s financial cushion. That’s the cold, hard truth. We’re dead last in economic growth. We’re the only state in the nation where the combined total of goods, services and salaries paid shrunk. That is a failure, that is our reality, and that is the result of the different road that the governor has taken us down. Instead of continually deflecting criticism and blaming the past , it is time to accept responsibility and change course.

“In its report, Fitch attributes Connecticut’s negative outlook to ‘the state’s failure to return to more structurally sustainable budgeting and rebuild flexibility at a time of unusually slow economic and revenue recovery.’ It also cites the state’s use of one-time revenue gimmicks and the refinancing of economic recovery notes (ERNs) as fiscal decisions that could jeopardize future bond ratings. The message is clear, Connecticut needs to get serious about controlling state spending and reducing debt.”
– State Sen. Toni Boucher (R-Wilton)

Here is a link to the Fitch report: