Governor, State of Connecticut
State Capitol, Hartford, CT 06106
congratulate you on taking what we believe to be giant steps toward honesty and transparency in state budgeting.
historically staked our position and presented our opinions apolitically, and will continue to do so, for independence is the
hallmark of the certified public accounting profession. As an organization, we comment not on policy but on procedure
and administrative efficacy, because we realize our 6,000 members may indeed hold different individual opinions on if,
why, where, and how to enhance revenue and/or decrease expenditures.
· Eliminate borrowing to cover operating expenses,
· Commit to fully fund our pension obligations, and
· End reliance upon "one-time" funds and other gimmickry used in previous years to "balance" the budget.
Connecticut faces a massive shortfall in the funding of state employee other post-employment benefits. We believe these
promises to state retirees are unsustainable and structurally unsound. The problem will become even more daunting as
Connecticut's population ages and decreases, with fewer taxpayers available to fund this growing liability. Accordingly,
we hope your commitment to fully fund our pension benefits also extends to fully fund the other post-employment bene-
fits in a similar manner.
Connecticut eventually has sufficient funds in reserve and your proposal to increase the percentage of the budget
reserved. Long-term fiscal sustainability will exist only when the Reserve Fund truly represents net assets available to
mentioned to maintaining our aging infrastructure and numerous other challenges. We need a roadmap to the future, and
a proverbial yardstick to measure our progress in enabling the state's long-term health, as measured by the GAAP finan-
cial statements on the full-accrual basis, to improve on a consistent basis. Living out our future in two-year increments
will not rescue Connecticut from its current plight; it will only prolong our fiscal misery.
where "snowbirds" and other Nutmeggers structure their lives to avoid residency rules and the accompanying "penalties."
nating the deficit. We recognize that identifying the problems is but the first step toward their resolution.
toughest of economic times, and how to thrive in robust economies. The CSCPA would be pleased to assist your admin-
istration in addressing these long-term issues with the development of a strategic plan to restore fiscal stability and even
vitality to Connecticut.
face together. Please let us know how we can help.