Fiscal Accountability Report Confirms Markley’s Fears: Too Much Spending, Borrowing

December 1, 2014

Hartford, CT – Senator Joe Markley (R-Southington) today stated that the recently-released Fiscal Accountability Report of the non-partisan Office of Fiscal Accountability “confirms the fears I have felt throughout Governor Malloy’s term about state spending, borrowing, and the fiscal crisis we face.

“Three years ago I warned that the Governor was on course to break his publically-stated “soft” bond cap of $1.4 billion. I had asked the OPM Secretary to show the math behind the state plan to remain under the cap.

“My concerns were mocked and my request ignored. Sure enough, the cap on bonding was broken. When the OPM Secretary came before me in 2013 with plans to borrow over $1.7 billion, I asked how that related to the cap. His response was that the cap was now $1.8 billion!

“Connecticut faces a deficit of approximately $100 million this FY2015 and deficits of nearly $3 billion during the next two years. Despite that dreadful prospect, the administration continues to borrow on the state’s credit card, and refuses to say we are ‘in deficit.’

“Just this week, Governor Malloy and the bonding commission allocated $266,970,253 in new General Obligation bonds. Such poor financial discipline is bound eventually to cause a downgrade in our state’s credit rating. Taxpayers will pay dearly if that happens.

“We are already in a terrible hole. Our per-taxpayer share of the state debt is more than $44,000—highest in the nation–and 13% of the state budget is dedicated to paying down debt.

“The State Treasurer recently admitted that our cash position has deteriorated to the point that money is being transferred directly from bond proceeds to cover operating expenses. This practice is extremely irresponsible and can lead to no good end.

“Putting our state’s fiscal house in order will be a painful undertaking, but the sooner we get started, the better it will go. The Governor and his legislative allies have complete control of our state government: they must recognize the need to face facts and hold the line on spending this session.”