Sen. Fasano Statement on Moody’s Assessment of GE Relocation for Connecticut

January 22, 2016

Credit rating agency identifies GE’s relocation a “credit negative” for Connecticut

HartfordSenate Minority Leader Len Fasano (R-North Haven) released the following statement regarding Moody’s Investors Service identification of GE’s relocation as “credit negative” for Connecticut. The credit rating agency recognized the correlation between Connecticut’s financial crisis and GE’s decision to move its headquarters out of state.

“This crushing assessment is evidence that GE’s move out of Connecticut speaks to the severity of Connecticut’s financial mess. It reflects poorly on Connecticut’s economy, tax policies, and business environment. If we want to turn that negativity around, Democrat lawmakers need to stop misleading the public. They need to stop distracting people from the truth that their failed financial policies, high taxes, and unsustainable approach to state budgeting are why GE left.

“The credit outlook states that Connecticut’s high fixed costs for debt and pension are major contributors to our state budget problems. Republicans had plans to address both these issues in the December special legislative session. But our proposals to make long-term structural changes were rejected by Democrat lawmakers who only wanted to fix the budget in the short term.

“People are leaving the state. Businesses are leaving the state. Even as our state raises taxes, revenue is decreasing. Connecticut’s adjusted gross income is far below what our state counts on, a result of explosive domestic out-migration, as highlighted by Moody’s. The more people leave, the more burdens will fall on those who remain. That’s why it’s so important to break the cycle now. Tax hike after tax hike followed by budget deficit after deficit creates chaos. We have to change the direction of our state to restore predictability and sustainability. Democrat lawmakers need to recognize the severity of our economic mess if they truly want to fix it,” said Fasano.