Comptroller: Connecticut wage growth continues to lag

Connecticut State Comptroller Kevin Lembo (Image: osc.ct.gov)

HARTFORD, Conn. (AP) — State Comptroller Kevin Lembo says wage growth in Connecticut and the U.S. remains below levels before the recession despite a rise in the number of jobs.

A report he released Thursday shows lackluster wage growth has affected state revenue, including payroll taxes that also struggled to reach pre-recession growth levels.

Connecticut relies heavily on the personal income tax to balance the state’s main spending account, the general fund.

Lembo’s report comes as Gov. Dannel P. Malloy cuts more than $102 million from the budget, just three months into the new fiscal year, to balance this year’s $20 billion budget.

Lembo’s report also highlights Connecticut’s unfunded pension liabilities for state employees. Based on the most recent actuarial valuation, the State Employees Retirement System is 41.5 percent funded, or nearly $15 billion.
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