Connecticut
New Jersey and Connecticut have eased longstanding pension pains somewhat
With their revenues beating expectations by stronger-than-expected tax receipts and federal pandemic support, many states have used the additional funds to pay down unfunded pension liabilities accrued in some circumstances over many years, in accordance with a Pew Charitable Trusts report on state pension techniques.
The mix of elevated contributions and surging funding returns “has had a stabilizing impact on state pension plans,” Pew mentioned within the report, printed in December 2021, however most lately up to date in April, estimating that collectively, U.S. states have achieved an mixture funding ratio of 80%, up from 71% in 2019, and 66% in 2016.
That rising tide has lifted two of the Northeast’s pension funding laggards, Connecticut and New Jersey.
The slide of many governments into pension underfunding occurred over many years and will be attributed to a variety of things various by state, in accordance with Doug Offerman, senior director in Fitch Scores’ U.S. Public Finance group. Most shared a penchant for continual underfunding throughout administrations, in addition to broadly held, however unrealistic expectations about market returns and volatility.
“A few years in the past, there was this assumption that your belongings would roar forward and canopy the required profit outlays over time,” Offerman mentioned.
New Jersey and Connecticut have been among the many worst offenders.
In 2019, when the nationwide common mixture funding ratio was 71%, New Jersey’s sat at 39% and Connecticut’s at 41%, in accordance with Pew.
Nevertheless each mounted turnarounds, taking steps to sort out pension underfunding which have rewarded each New Jersey and Connecticut with score upgrades by closing the funding ratio hole relative to different states. They’ll seemingly face comparable challenges to proceed the optimistic momentum.
In New Jersey, the about-face on pension funding was sudden and efficient, in accordance with Ted Hampton, senior credit score officer for New Jersey at Moody’s Buyers Service.
Within the put up Nice-Recession period, the state elevated advantages however needed to take care of “weaker market efficiency than had been anticipated,” and, in accordance with Hampton, chronically shortchanged the pension fund by counting on it as “a aid valve for fiscal stress in different areas.”
The one-two punch of falling contribution charges and growing pension payouts weighed closely on the state’s credit score high quality.
New Jersey recorded an unbroken string of 13 consecutive downgrades in 10 years from three score businesses, a streak lastly damaged by two upgrades in March.
“It is that sample of weak contributions traditionally that basically helped them dig the opening extra so than different states,” mentioned Tom Aaron, senior credit score officer at Moody’s who focuses on U.S. public pension techniques.
Not too long ago, nevertheless, Gov. Phil Murphy twice leveraged billions in post-COVID tax surpluses to pay into the fund, cited as a key cause for by S&P for upgrading the state’s basic obligation bond score for the primary time in seventeen years in April, to A-minus from BBB-plus, in addition to a more moderen revision of the outlook to optimistic from steady in August.
“The outlook revision follows the second consecutive yr the state has budgeted the total annual actuarially decided contribution to its retirement techniques,” an replace launched by S&P mentioned.
In line with Hampton it was the primary time in many years the state made its full actuarial contribution to the pension fund, however was preceded by different modifications.
New Jersey nonetheless at present has $100.6 billion in unfunded pension liabilities at one of many worst funding charges within the nation.
Different strikes to handle the extra systemic points included the state wielding its energy to chop value of dwelling changes and new employee advantages in keeping with future value expectations, along with a 2016 mandate requiring quarterly contributions to the fund.
“Not each state has the authorized authority to do this,” he added.
Connecticut is a type of states.
Although administration after the administration had “gotten used to under-contributing,” for years, the state started to squarely reckon with its runaway pension debt round 2008, when a consensus took root “throughout a number of administrations, a number of governors, a number of treasurers that the pensions wanted to profit from extra state sources and changes to their assumptions” within the wake of the financial downturn, Offerman mentioned.
Together with persistently totally funding annual contributions within the years that adopted, the state additionally contributed $6 billion above that to pay down the debt during the last three years.
Importantly, the state instituted some extra elementary reforms previously which are bearing fruit at this time, mentioned Bryan Quevedo, director of U.S. state rankings for Fitch.
Missing the New Jersey state authorities’s unilateral authority, Connecticut pursued legislative modifications way back to 2011, when it handed a package deal of reforms that curbed will increase in new employee advantages and helped deliver down value expectations for the years forward.
In 2016, the state higher aligned the pension portfolio’s anticipated efficiency with market realities, introducing a plan to regulate the yield assumption downward by 1.1%, to six.9% from 8%.
With post-COVID increase in funding returns accounting for as much as 60% of the advantages being paid out pay out throughout the nation and anticipated to lower at 6% yearly, in accordance with Pew, that adjustment will seemingly assist insulate in opposition to leaner financial instances, marking “a really vital change” that has seemingly saved the state between $300 and $500 million since its establishment, mentioned Quevedo.
Whereas each states approached the fiscal instability of their public pension packages with completely different means, they’re prone to face comparable points going ahead which may require parallel approaches to future-proof the packages, in accordance with Offerman.
The elevated burden of an getting old inhabitants could necessitate changes to the comparatively beneficiant ranges of advantages that retirees in each states take pleasure in. As properly, officers might want to plan for inevitable bouts of market volatility and return decreases, which may very well be finest served by shift of mindset that favors “a conservative strategy to contributions and assumptions” the place state officers are involved.
“The selections that particular person administrations take are significant in, , step by step driving the trail of a pension that’s poorly funded,” he mentioned. “All the things with pensions strikes slowly,” he mentioned, “however the choices that particular person administrations take are significant in step by step driving the trail of a pension that’s poorly funded.”
Nationally, the Nice Recession pressured state officers to pay attention to the unsustainability of pension funding schemes, triggering a wider shift in how funding retiree techniques could be approached.
“Getting that message throughout to the choice makers for pensions has taken a very long time,” Offerman mentioned. “However many took motion…to shift profit insurance policies, or to make different modifications that step by step shifted the route of the place pensions are going.”
The current complete for unfunded liabilities sitting at underneath $800 billion nationally, Pew’s report mentioned.
“This represents the very best funded ratio since earlier than the Nice Recession and the best progress in closing the state pension plan funding hole – the distinction between plan liabilities and belongings – this century.”
Whereas that may be a web optimistic for the nation, the report highlights the “historic contribution volatility” and warns “not all state pension funds are approaching long-term fiscal sustainability, outlined as authorities revenues matching expenditures with out a corresponding improve in public debt.”
Connecticut
I skip the Hamptons and head to a coastal town in Connecticut instead. It's less crowded and wonderful year-round.
- For years, I spent countless hours stuck in traffic driving to the Hamptons from my home in NYC.
- I got fed up and started spending weekends in Madison, a coastal Connecticut town.
- Madison’s beautiful beaches and cute downtown offer lots to do without the crowds.
I vacationed in the Hamptons for decades but eventually got a bit tired of it.
I can’t count how much time I’ve spent sitting in traffic on the Montauk Highway, searching for parking spots at the beach, and waiting for tables at trendy restaurants.
Fortunately, “destination dupes” are all the rage right now with many turning to TikTok to find less-crowded, cheaper, and more under-the-radar alternatives to their dream vacation spots.
So, I found my own “dupe” of the Hamptons about 100 miles away in New England: Madison, Connecticut.
The town defines coastal calm, with just about everything the Hamptons has minus the crowds. It’s still upscale but less expensive — and my drive from New York City to Madison isn’t so bad.
Here’s why I love Madison so much.
The beautiful beaches get me every time
The local beaches attract me like a magnet. Fortunately, Madison has about a dozen.
My favorite is Hammonasset Beach State Park, with about 2 miles of Long Island Sound shoreline and trails that I can bike on. It’s felt clean and uncrowded each time I’ve visited.
I stay at a bed-and-breakfast that blends cozy with chic
There are several bed-and-breakfasts in Madison, plus a beachfront Hilton hotel.
I usually stay at The Homestead, an upscale B&B that hits the right balance between charming and modern. Its dozen or so rooms are individually decorated with high-end furnishings and posh perks like Japanese toilets, showerheads infused with vitamins, and record players with an eclectic selection of vinyl.
Each guest has access to complimentary bikes, towels, and beach chairs to borrow. Plus, its gardens and decks with firepits make it easy for me to spend time outdoors.
I also love its gourmet snacks and elegant breakfast buffet with things like quiche, cake, fresh fruit, and yogurt.
There’s plenty of retail therapy and artwork to be found in town
Madison’s downtown is low-key, laidback, and walkable, with excellent New England vibes.
I can get lost for hours at RJ Julia Booksellers, which I consider one of the best independent bookstores in the entire country.
I always stop at Savvy Tea Gourmet, which sells a variety of unique teas and has in-store tastings. When I’m not sure which tea leaves to buy, the owner steers me in the right direction.
The town also has a cluster of cute clothing boutiques. My favorite is The Dressing Room, where the staff is friendly and the sales are legit.
Along the way, I take in some of the local art. Madison has plenty thanks to the Sculpture Mile, a free outdoor public art installation of museum-quality sculptures scattered around town.
Madison Cinemas is perfect for rainy days
When it’s cold or rainy, you’ll find me at Madison Cinemas watching arthouse and international films.
The century-old theater has freshly-popped popcorn topped with real butter and local beer and wine.
There’s often something happening on the town green
Madison’s historic town green is its leafy centerpiece. I like to stroll the peaceful paths and listen to live music during the free concerts on Sunday evenings in the summer.
It hosts a great farmers market every Friday afternoon from May until Thanksgiving and the town often has seasonal festivals.
The culinary scene is great, too
Madison has a few eateries I try to stop at each time I visit.
French bistro Bar Bouchée transports me right to Europe with its ambiance and traditional Gallic fare. I can also never resist ordering the profiteroles drenched in warm chocolate sauce.
I book a table at The Wharf when I want to eat fresh seafood with a view of the water. My go-to order is the warm lobster roll served with a mountain of crisp shoestring fries.
When I crave pasta like my Nonna used to make, I head to Café Allegre. The Italian eatery serves classics like spaghetti with fresh clams and robust rigatoni with meatballs and sausage.
Madison is also lovely in the fall and winter
In the fall, the area’s numerous farms and farm stands overflow with fresh produce and pretty flowers. My favorite is Bishop’s Orchard in neighboring Guilford, where I go apple-picking each autumn.
The beaches are fun to visit throughout the year, too. The water usually stays warm well into October, so I can have a dip surrounded by fall foliage.
I even go in winter for chilly seaside strolls and snowshoeing on the maze of wooden boardwalks.
Connecticut
Crews continue battling Hawthorne Fire, other fires amid dry weather conditions
As the Hawthorne Fire continues to burn into its twelfth day, crews remain on scene in Berlin using new equipment to help them battle the flames.
This comes as the state sees more fires spark up due to the current dry weather.
As crews from all over the state and the country continue to fight the Hawthorne Fire in Berlin, officials say they’re holding steady with limited fire growth.
The fire is now burning at 127 acres. Firefighters are focusing on tackling hot spots in the southeast part of Lamentation Mountain. They’re using drones with infrared cameras to help.
“If we do it in the morning and in the evening before sunrise and after sunset, we get a better interpretation of what the actual fire or the spot fires are on the area,” Bill Perkins with the Connecticut Incident Management Team said.
They say this technology has already helped crews on the ground.
“Those red dots that we see on that camera become less and less and for us, that’s a good thing,” Perkins said.
The dry weather across the state has sparked other brush fires, including one in Roxbury which caused roads to be shut down in the area.
In Bristol, smoke could be seen in town as firefighters battled a fire that sparked up again in the area of Mountain Road.
Those are some of the fires the Department of Energy and Environmental Protection (DEEP) said it’s monitoring.
“That’s a thing for our firefighters to be aware for rapid spread rates of fire and extreme fire behavior,” Rich Schenk, fire control officer for DEEP, said.
With a red flag warning in effect Friday, state officials say conditions were ripe for fires to start.
“Fire growth and the probability of something igniting is at an extreme level so that’s why we are super concerned,” Josh Cingranelli with the Division of Emergency Management and Homeland Security said.
They’re urging people across the state to take precautions such as clearing out leaf piles.
“Use a leaf blower. Get those leaves away from your house in case something does ignite. Then it’s not right up against your house,” Cingranelli said.
Fire officials are urging people to follow the burn bans to keep other fires from potentially happening.
Connecticut
CT early voting turnout: How many people in your city have voted?
With less than a week until Election Day and 10 days into early voting, hundreds of thousands of Connecticut residents have already cast their ballots.
For the first time, Connecticut residents can vote early. Early voting started on Oct. 21, and as of Tuesday night, more than 430,000 ballots have been cast, according to the Secretary of the State’s office. West Hartford has the most people voting early with 10,207 ballots cast, followed by Norwalk with 9,690 and Stamford with 9,511. Fairfield and Milford also have strong participation in early voting, with 9,453 and 8,766 votes.
Most early voters are registered Democrats, with 112 towns showing Democratic majorities among early voters. In comparison, 57 towns have the most early voters as unaffiliated, and 14 towns lean Republican.
Voter registration in Connecticut is concentrated in the state’s biggest cities. Stamford leads with 76,418 registered voters, followed by Bridgeport with 71,382 and Hartford with 64,244. Norwalk and New Haven complete the top five, with 58,085 and 57,551 registered voters, respectively.
Certain towns stand out for their high turnout relative to registered voters. Sharon leads with 37.8% of registered voters casting ballots early, followed by Salisbury at 37.1% and Woodbury at 34.9%. Madison, Clinton and several others show over 30% early voting participation.
Other cities show low early voting turnout relative to their registered voters. Hartford leads in low participation, with only 5.8% of registered voters casting ballots early. Waterbury follows with 6.9%, and New Haven with 7.9%. Bridgeport and New Britain have 8% and 10.1% early voting rates, respectively.
Check the Connecticut Voter Guide 2024 for more information on the elections.
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