The surprising state with Americas highest debt burden thats equivalent to $8k per resident

Connecticuts tax-supported debt as a percentage of its own revenue greatly exceeded all other states for fiscal year 2022.

The revelation comes as a slew of state construction and transportation projects remain tied up.

In total, the states net tax-supported debt (NTSD) for 2022 was $28.9billion, according to the Office of Legislative Research (OLR) - or $7,988 for each of its residents.

Governor Ned Lamont’s budget spokesman, Chris Collibee, reacted to the number this week - as it was more than three times that of the state with the next-most debt, Hawaii.

Maintaining infrastructure in the far-flung state is notoriously costly, thanks to things like sea-level rise, land-scarcity, and the states remote nature.

In Connecticut, this is not the case - leading Collibee to offer an explanation.

We enjoy a high quality of life in this state, the budget advisor said in response to the nearly $29 billion thats been racked up. And that does require continued capital investments for a variety of public facilities and infrastructure. 

He conceded the report still illustrates [a] need for continued adherence to sound fiscal management, as officials now work to reduce the debt and, in Collibees words, [the] burdens on our taxpayers.

A Metro-North Railroad train crosses the Walk Bridge in Norwalk while construction on a new bridge continued last week. Such projects have caused Connecticuts tax-supported debt to skyrocket, lawmakers this week confirmed

Connecticut sports the fourth highest property tax rate in the country, behind only New Jersey, Illinois, and New Hampshire. 

Those states ranked fourth, eighth, and 26th respectively, with per capita NTSDs of $5,030, $2,903, and $756.

Connecticuts corresponding number is nearly as much as all three combined, OLRs report revealed - months after the states General Assembly made a major move to eliminate a huge portion of the mounting number.

In May, officials adopted a proposal personally penned by Lamont that saw nearly $500million funneled away from the states annual budget - specifically, a portion designated for finance upgrades to its aging transportation infrastructure.

The money will instead go toward retiring high-interest-rate bonds ahead of schedule, which Lamonts administration estimates will save the state about $60 million annually by 2026 -  and as much as $75 million within the next two years.

The bonds had allowed investors to funnel money into projects to make returns, but Connecticut has been using the tactic - which essentially constitutes borrowing - to make payments on even more borrowing.

This has been going on for decades, and the state is expected to borrow another $80million for the current, once-every-other year budgeting cycle - something the CT Mirror on Wednesday reported was akin to using one credit card to pay off another.

Upon assuming office in 2019, Lamont, a Democrat, challenged legislators  to dial back borrowing and accept a debt diet - but those calls, until now, have gone unheard.

In total, the states net tax-supported debt (NTSD) for 2022 was $28.9billion, according to the Office of Legislative Research (OLR) - or $7,988 for each of its residents. Another languishing bridge project in Stamford is seen here

Governor Ned Lamont’s budget spokesman reacted to the number this week - as it was more than three times that of the state with the next-most debt, Hawaii. The Democrat for years has been asking state officials to lessen their reliance on borrowing money

Pictured, the Connecticut State Capitol in Hartford. Some lawmakers, most of them Democrats, continue to insist that borrowing is essential to the certain parts of the famously affluent states framework

At the time, he received pushback from Democrats in the states General Assembly, paving the way for the state to now set to sell some $2.6billion in bonds to Wall Street investors this fiscal year - all to support state initiatives.

This includes a lengthy till for school construction and transportation work, most of which are ongoing highway, bridge and rail projects.

This, in part, is because the state pays a greater share of municipal school construction costs than most other states due to not having a county government - just the states and nowhere else to shift debt to. 

However, Rhode Island, like Connecticut, lacks county government, but only owed $3,103 a person in 2022 - less than half of Connecticut’s amount for every man, woman, and child.

Optimistic onlookers, meanwhile, continue to tout Connecticuts status as one of the richest states in the nation, asserting it can afford to carry more debt than certain other states.

Still, Connecticuts bonded debt in 2022 in terms of percent of personal income - 9.4 percent - was only topped by Hawaii.

The debt also ranked second in statistics comparing it the total value of all goods and services - again nine percent, and again only exceeded by Hawaii.

The numbers show a debt that is decidedly larger than most risk management experts would advise, with a simultaneous pension debt - estimated to be more than $37 billion at the start of 2024 - worsening matters.

We enjoy a high quality of life in this state, Lamonts budget advisor said in response to the nearly $29 billion racked up . And that does require continued capital investments for a variety of public facilities and infrastructure. Workers are seen carrying materials in Stamford last year

Some lawmakers, most of them Democrats, continue to insist that borrowing is essential to the certain parts of the states frameworks - such as education and job development.

But interest rates have risen drastically since the mid-2010s, making the concept increasingly difficult.

Connecticuts debt when it came to percentage of personal income and state GDP was also markedly over the national media, which OLRs report showed to be 2.2 percent and 2 percent, respectively.

Meanwhile, Hawaii has an income tax rate almost double that of Connecticut, which helps to clear up debt.