Economists from the University of Connecticut argued in a report today that the state should put to use some of its $6 billion in authorized bonds.
The academics, who work at UConn’s Connecticut Center for Economic Analysis, said quickening the pace of capital projects financed by the funds would have a dramatic impact on the state’ economy over the next two years — increasing aggregate employment from 16,000 to 28,000.
“Unleashing even more bond supported funds combined with significant matching from federal funds has the potential to accelerate employment growth to a still higher rate, driving rapid job creation,” the report reads.
But the economists said the projects that would be funded under such a scenario should be carefully vetted on the basis of their short-term and long-term benefits.
Buying school buses or building schools, for example, has little or no economic benefit, they argued. But improving highways — a major weakness of the state — as well as mass transit, would have notable impacts, they said.
The report said Connecticut’s economic recovery is slowly strengthening, with performance approaching national growth rates.
But the recommendations come as Connecticut faces long-term economic challenges. The state has struggled to recover from the recession, with output and household income still unable to climb back to 2007 levels.
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