The Wall Street Journal reported on June 14, 2019 that Connecticut’s biennial budget soon to be signed by new Democratic Governor, Ned Lamont, will increase spending by $2 billion, funded in part by extending the state’s 6.35% sales tax to previously un-taxed purchases like digital movies and laundry drop-off services.

A key concern of Connecticut bond investors has been the State’s unfunded pension plan. The Journal reported that the Governor’s budget will skip actuarial-determined payments of $9 billion in the biennial budget. The state employee pension plan, currently under-funded by $100 billion, translates to a whopping $75,000 of contingent liability for each Connecticut household.

General Electric moved its Fairfield headquarters for Boston in 2016. This week, Farmington-based United Technologies Corp. announced it too will move its headquarters to Massachusetts when its merger with Raytheon is completed. The Journal reported that UTC is currently Connecticut’s largest employer.

Read the Journal article (subscription may be required).

Contact Jumanne Johnson at JJ@BuyMuni.com.