Moody's has assigned Connecticut's bond rating "Aa3", and designated the outlook as Negative. Moody's says that reflects a lagging economy and weakening demographics that have led to budgetary strain. Moody's believes that economic trends will place negative pressure on the state's finances in the next few years, while the very high fixed costs reduce flexibility.
Connecticut has still not fully rebounded since the 2008 recession. New Fairfield State Representative Richard Smith says while there has been a recovery of jobs, it's been low wage positions. In order to reverse the economic trend, Smith says the legislature must put forth measures that will encourage businesses to invest in Connecticut’s workforce.
According to the Tax Foundation, Connecticut’s state and local tax burden is the 2nd highest in the nation. Despite the two highest tax hikes in state history, both occurring within the past five years, budget deficits remain.
Forbes has also cited Connecticut as being a poor place for businesses to operate in. The cost of doing business in Connecticut is 10.8% above the national average.