The
volatility of the Stock Market has been evident in the last three days of
headliners….
US stocks drop, attention returns to weak economy
U.S. Stocks Bounce Back In Early Trade; Apple Up
Stock market slaughter
****************
Investors lose a trillion dollars in one day
Don't look to the Fed for a rescue
Housing recovery slips out of sight
JOBS: Worse than you think
Fannie And Freddie
Downgraded; States Next?
Muni
downgrades are next.
****************
August 9,
2011
From The Federation of Connecticut Taxpayer Organizations
Contact Susan Kniep
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032
Lowering of US
Credit Rating by S&P, follows Lowering of Connecticut’s Credit Rating
Outlook by Moody’s Investors Service!
What Now Connecticut?
Last week, the President and Congress – many of whom are
millionaires - left Washington’s sinking ship. Today, the rest of us are left with the
spoils of their folly as 401ks plummet and we learn from an S&P
exec: Another downgrade for US possible and Fannie Mae and Freddie Mac downgraded.
Headlines
such as U.S. Stock-Index Futures, Oil Plunge After U.S. Debt
Downgrade reveal that the downgrade would raise the nation’s
borrowing costs by $100 billion a year.
As Debt issuers brace for impact from U.S. downgrade,
Forbes reports After US Downgrade, This Could Get Ugly and suggests “the debt downgrade is serious
business and calls into question the role of the US dollar as the lead world
reserve currency”.
As the largest foreign holder of US debt, China Condemns U.S. ‘Addiction to Debts’ after China’s Debt Monster was also called into
question.
Connecticut’s Latest Fiscal Accountability Report Released
in Nov, 2010, revealed that Connecticut’s debt stood at $72
billion. This included $19.3 billion in
bonded debt with the remainder to cover teacher and state employee pensions and
healthcare. http://ctmirror.org/sites/default/files/documents/OFA_Nov%2015%202010%20report2.pdf
In June 2011, Moody’s Investors Service revised the
outlook on the State of Connecticut’s general obligation bond rating to
negative from stable citing
Connecticut’s costs to repay the debt are high relative to its budget
and that the cost of state pension and other retirement benefits relative to
the budget are among the highest in the United States.
Our future in Connecticut grows dim as we pay some of the
highest taxes in the nation, have the highest bonded debt, pay 75% to 90% of
our property taxes for Town and Board of Ed wages, pensions and healthcare, and
continue to await the bill for State employees who have been offered lucrative
contracts offering a 4 year job guarantee, 9% wage increase and lucrative
health and pension benefits.
As Connecticut taxpayers are burdened with $1.5
billion in new taxes, and it is predicted that the Debt ceiling fix could mean problems for states
such as Connecticut, Governor
Malloy hedges on budget cuts as union voting nears the end
.
Complicating
the issue is State Prosecutor Wants Labor ‘No’ Vote Reinstated. According to Connecticut’s Transparency
Website http://transparency.ct.gov/html/searchPayroll.asp
this State Prosecutor earned in Salary/Wages
$126,794.59 and Fringe Benefits $65,456.94 for a total of $192,251.53 from July
1, 2009 to June 30, 2010.
Although we are barraged with news on the S&P downgrade,
the debacles created by Congress, and Connecticut State Employee Unions having
the power to hold our state hostage, many local taxpayers in the 169
Connecticut towns are asking How Will our Property Taxes be Affected?
If the Federal government cuts its allocation to the States
and those cuts are passed on to the 169 Connecticut towns - if Connecticut’s
state employee unions sign contracts with a 4 year wage freeze and 9% wage
increase - and if anticipated revenue is not generated by the State - the end result could be a cut to municipal
aid by the State thereby driving up local property taxes. With the majority of local budgets
dedicating 75% to 90% of their expenses to Town and Board of Education wages,
pensions and healthcare - and many municipal union contracts sealed with wage
increases – and State Collective Bargaining Laws determining the outcome of
future employee contracts - the increase
in local property taxes could be dramatic now and in the future.
The only solution for the
State and the 169 Towns throughout Connecticut is a reform of
State Collective Bargaining Laws!
During the past few months, taxpayers throughout Connecticut and nationally have witnessed
the power of Connecticut’s State employee
unions over the State’s budget.
In contrast, it has become evident that Governor Malloy and the State
Legislature have limited control over state personnel and finances due to State
Collective Bargaining Laws which also limit the ability of local elected officials
to manage their towns.
In summary, Collective
Bargaining Laws must be reformed to take the control of our state and municipal
budgets from public sector unions and place those controls where they belong –
with those whom voters elected to office. For those elected officials who refuse to
reform those laws and chose to leave the unions in control, there may be other
professions to which they may be better suited.
If you agree, then consider
asking your local legislative body to adopt the proposed Resolution or a
facsimile thereof and send the resolution to their state legislators asking
them to open the door to reforming State Collective Bargaining Laws which will
in turn help to control both State and local taxes.
Click the following to read the proposed resolution.....
***********************
Dr. Armand Fusco to speak at Wethersfield Library on Sept 1
at 6 PM
Hartfordmag.com Provides Info on High
Schools in the region.
How does your High School Rate?
With other issues pressing, Congress faces more debt debate
Employers with greatest
number of HUSKY recipients are Walmart, Dunkin'
Donuts, Stop & Shop, and McDonald's according to the State’s Office of
Legislative Research…. Check it out http://www.cga.ct.gov/2011/rpt/2011-R-0263.htm
Great article …. IRS Limits Present A Chance For
State Pension Reform
Teachers Union Explains How Things Work
At Capitol: Rick Green | CT Confidential By Rick Green
on August 7, 2011 11:05 AM The PowerPoint surfaced briefly on an American Federation of
Teachers website this week and was quickly seized upon by bloggers
and national media, including The Wall Street Journal, which said it shows how
the union "successfully undermines parental power in education." http://blogs.courant.com/rick_green/2011/08/teachers-union-explains-how-th.html
Education: County Ups the Ante in Voucher WarA2
In a bid to revamp public education, a suburban district
south of Denver has begun handing out vouchers that use public money to help
its largely affluent residents send their children to private and church-based
schools. http://online.wsj.com/article/SB10001424053111903885604576488472660592718.html
Health Insurers Sacrifice Americans for Profit CIGNA and Humana are
scheduled to report earnings this week. The three companies that have already
spoken -- UnitedHealth, WellPoint and Aetna -- earned
a combined $2.51 billion from April through the end of June, more than analysts
expected. On a per share basis, their earnings were up more than 17 percent on
average compared with the second quarter of 2010.
http://www.prwatch.org/news/2011/08/10929/health-insurers-sacrifice-americans-profit
Waterbury test scores investigated - Topix and Stiffer Penalty Proposed For School Employees Who Fix Test
Scores
Source: courant.com School
employees in the state who cheat on Connecticut 's standardized exams could be
held financially liable for retesting and investigation costs under a proposal
from Acting Education Commissioner George Coleman. http://articles.courant.com/2011-08-03/news/hc-waterbury-cheating-0804-20110803_1_connecticut-mastery-test-substitute-teachers-school-employees
U.S. Widens Its Role in Battle Against
Mexico’s Drug Cartels
Windham schools 'special master' starts
work soon
Source: courant.com Aug 5, 2011 The education reform specialist
hired to help revamp Windham 's troubled school system is starting work this
month under a contract paying him $225,000 yearly. http://www.courant.com/community/windham/hc-ap-ct-windhamschoolsaug05,0,7711872.story
CONNECTICUT’S NEW TRANSPARENCY WEBSITE http://transparency.ct.gov/html/main.asp
Check out the
Pensions of State Retirees http://transparency.ct.gov/html/searchPensions.asp
State Prosecutor Wants Labor ‘No’ Vote Reinstated by Hugh McQuaid | Aug 3, 2011
1:12pm The state Board of Labor
Relations heard the case of the state prosecutor who filed a complaint against
the State Employee Bargaining Agent Coalition at a Wednesday conference, which
was ongoing in the early afternoon. In her complaint, filed last month, Lisa Herskowitz lodged a number of allegations at the governor
and SEBAC, claiming the coalition violated its own bylaws and overstepped its
negotiating authority. Read complete
article at http://www.ctnewsjunkie.com/ctnj.php/archives/entry/state_prosecutor_wants_labor_no_vote_reinstated/
How Many Millionaires Paid No Income Tax
During Recession? New tax data from
the Internal Revenue service shows that in 2009, incomes fell, unemployment
claims rose, and the U.S. economy shed nearly two million taxpayers.And
of the 235,413 taxpayers who earned $1 million or more in 2009, 1,470 of them
paid no taxes. Continued at ….. http://www.huffingtonpost.com/2011/08/04/irs-incomes_n_918458.html
If a Town Like Central Falls
Can Go Bankrupt, Why Can’t the United States? (column
- Dan Kadlec / Time Magazine) Aug 3, 2011 On the heels of a federal
debt deal that no one really wants comes news that tiny Central Falls, R.I., (population:
18,716) has landed in bankruptcy court. City fathers cannot pay retirement
benefits promised to municipal retirees, most notably former firefighters and
police officers. So the city is going to court to take back what it had
promised. If only this was an isolated case. Last year, city officials in Prichard, Ala., (population: 27,578)
stopped paying 150 retired town employees the benefits they once thought were
secure. Pensioners in Prichard are going back to work,
if able. Some cannot afford electricity and running water. The New York Times reports that three other
cities in Rhode Island expect to reduce pension checks and that a handful of
other local taxing authorities are either in bankruptcy (Vallejo, Calif.) or
expect to file for bankruptcy (Jefferson County, Ala.) in the near future.
(MORE: If Families Balance Budgets, Should Governments?)
One by one, communities are going broke and leaving public pensioners in the
lurch. This is but the tip of the iceberg. Barring a miracle turnaround, others
will fail in similar fashion. Continued at ….. http://moneyland.time.com/2011/08/03/if-a-town-can-go-bankrupt-why-cant-the-u-s/
Five False Premises about
Economic Recovery Aug 7, 2011, Commentary by Ha-Joon Chang teaches
economics at the University of Cambridge. This article
partly draws on his latest book, 23
Things They Don’t Tell You About Capitalism. …Strategy believes that
recovery requires a dramatic cut in government spending, minimal tax increases
(ideally tax cuts for the rich) and deregulation. Unfortunately, this strategy
is not going to lead to a sustainable recovery. Why? Because
it is based on false premises. Here are five of them. Continue reading
at http://blogs.wsj.com/source/2011/08/07/five-false-premises-about-economic-recovery/
Funded Status of US Corporate Pensions Falls to 83.6% in
June, According to Mellon (press release - BNY Mellon)
DMV delays closings, layoffs, until after concession revote
State pink slip count drops slightly due to new retirements
Privatization Baby Split In Half
Fannie needs more funds as U.S. struggles with housing
WHO HAS THE BEST AND WORST
TAX SYSTEM? CHECK OUT CONNECTICUT! … busines_tax_index_2011.pdf
Check out some interesting
figures….. Our Sputtering Economy, by the Numbers by Braden Goyette ProPublica,
Aug 2, 2011 As Congress enacts a 10-year package of spending cuts, economists
worry that the economy may be weakening and could actually benefit from a brief
jolt of short-term spending. Here’s an overview of where the economy stands
now. Read complete article at ….. http://www.propublica.org/article/our-sputtering-economy-by-the-numbers
Read More at