Monday, May 12, 2014

CT: State 'in worse shape than Detroit,' CPA warns

CROMWELL — Camille Murphy, a certified public accountant and senior partner of Branford-based Bailey Murphy & Scarano LLC, warned Friday that if Connecticut put all its debt and promises on a ballot sheet, the state would have a $59 billion operating fund deficit.
Murphy, president of the Connecticut Society of CPAs, asked an economic conference, “Do you think this is sustainable? I don’t.”

In past decades Connecticut has increased its bonded debt and unfunded liabilities, putting more pressure on the state budget. As a result, a retiree with a $30,000 annual pension could risk having it shrunk to $4,800.

“When Detroit found itself in real trouble it had a debt-to-asset ratio of 5.6 to 1,” she said. “Ours is 22.4 times greater. So, we’re in worse shape than Detroit.”



http://www.newbritainherald.com/articles/2014/05/12/news/doc53703182a6a65690142411.txt




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