Connecticut Circles the Toilet

Connecticut has joined many other states that have attempted to fund their budget deficits with debt issuances, and that consequently have had their ratings downgraded.

"Connecticut, the state with the highest tax-supported debt, had its bond rating lowered one level to AA by Fitch Ratings as it prepares to borrow money to cover a budget deficit for a second straight year.

Connecticut is preparing to borrow $956 million to close a budget gap in the fiscal year beginning July 1, after borrowing money last year to cover a deficit of $947.6 million, the analysts said. Lawmakers also chose to draw down the state’s rainy-day fund and raise the top income tax for residents after tax collections fell almost 15 percent in the year ending June 30, 2009, according to Fitch."

Now, we all know that just because a ratings agency such as Fitch decides to take action doesn't mean much. All three of the big ratings agencies (S&P, Moody's and Fitch) were woefully late in making any meaningful downgrades on the ill-fated investment banks and basically mis-rated much of the mortgage-backed securities market.

Nonetheless, it's telling that Connecticut is now viewed as crossing some sort of abyss. Why legislators there can't simply find some spending programs to cut in order to maintain a balanced budget is beyond me.

It's simply outrageous that there are no (save Ron Paul, and perhaps Chris Christie, governor of New Jersey) politicians at the federal or state that are willing to stand up and do the right thing - which is, to not issue more debt that has to be repaid by future generations from higher-than-necessary taxation.

We can only hope that the November elections are the chance for right-thinking Americans to correct the direction of this country on many levels.