Recent news from bond rating agency is sobering

I want to share with you some recent discouraging news regarding the state’s financial health. 

On Oct. 27, a new report from Moody’s Investor Services revealed the bond rating agency downgraded the outlook for Connecticut’s General Obligation bonds from stable to negative.

Moody’s indicated the downgrade was motivated in large measure by the new, two-year state budget, which relies excessively on borrowing and one-time fixes to close a deficit of about $8.5 billion. The report is clear evidence that further reductions in state spending are necessary.

Along with my legislative Republican colleagues, we have been sounding the alarm for months about how irresponsible it was to pass an unsustainable budget. We continue to believe that the state budget passed this summer relies far too much on debt and one-shot revenues to prop up continued unaffordable levels of spending which in the first two months since passage has created a $388.5 million deficit.

Connecticut’s legislative majority must finally accept the necessity of further reductions in state spending as well as promoting more business friendly tax policies if we are to avoid setting ourselves up for fiscal failure.