Connecticut residents are embroiled in a fiscal dichotomy. On the one hand, they feel good about their personal finances but give low marks to the state government’s budget.
In the latest InformCT Consumer Confidence Survey, for the first quarter of 2016, the percentage of respondents who believe that the Connecticut economy is improving has dropped 10 points from the first quarter of 2015 to the first quarter this year, from just over 34 percent of state residents to just under 24 percent.
A year ago, when asked about current business conditions in Connecticut versus six months prior, 29 percent said conditions were better and only 22 percent said they were worse. That break-down has now flipped, with 22 percent stating “better” and 29 percent saying “worse.”
A majority of respondents (56 percent) said they intend to make some (41 percent) or significant (15 percent) cuts to their personal budget, as a result of budget cuts at the state level. Only four in 10 say that state cuts will have no effect “on me personally.”
Asked what the state should do to best remedy the budget shortfall, 59 percent urged the state to reduce spending while 43 percent suggested raising taxes on the top 1 percent of income households, 14 percent supported raising taxes on businesses, and 5 percent agreed with raising taxes on all residents proportionately (note: respondents could chose more than one answer).
Other findings show the following:
- Employment: Residents increasingly believe that although there are jobs available, six in 10 believe there are “not enough.” And 42 percent are concerned that either their job, or their spouse’s job, is in jeopardy – up from 33 percent in the previous quarter, and the highest level the quarterly survey has seen in the past year.
- Finances: 32 percent of residents say they are better off than six months ago (up from 24 percent in the previous quarterly survey) and 44 percent believe they will be better off six months from now than they are today, a jump of 10 points from last quarter. More than 83 percent say that from a personal financial standpoint, they will be much better off, somewhat better off, or about the same, six months from now.
- Quality of Life: 48 percent of residents continue to believe that Connecticut is a good place to live and raise a family, and only 29 percent disagree – a number that hasn’t budged much during the past year.
- Ready to move: The percentage of respondents who say they are likely to move out of the state in the next five years has increased to its highest level in five quarters (to 43 percent) after hovering between 32 percent and 39 percent in the four quarterly surveys of 2015.
- Regionalism: Perhaps driven by economic necessity, the public’s view of regionalism – long an anathema in Connecticut – indicates receptivity. Over half of respondents agreed that services such as public safety, public health, libraries, education and animal control “could effectively be delivered regionally.”
- Invest in Education: 52 percent believe that the best way to grow the economy is to invest in local schools, transportation choices and walkable areas, versus 48 percent who view recruiting companies to the area as the best method.
The quarterly survey is released by InformCT, a public-private partnership that provides independent, non-partisan research, analysis, and public outreach to help create fact-based dialogue and action in Connecticut. Administered by researchers from the Connecticut Economic Resource Center and Smith & Co., the analysis is based on the responses of residents across Connecticut and addresses key economic issues such as overall confidence, reactions to housing prices, upscale consumer purchases, leisure spending and current investments.
