Growth Arrested? Bonding, Job Creation, and the Health of the Connecticut Economy
15 Pages Posted: 20 Sep 2013
Date Written: September 18, 2013
This quarter’s conventional CCEA analysis finds indications that the listless economic recovery in Connecticut is slowly strengthening, with performance approaching national growth rates. Looking ahead eight business quarters, this Outlook details three scenarios: one based on housing permits, a second that replaces housing permits with the current low prime bank rate, and a third built on a NAICS industry sector analysis.
To achieve its full potential during this period of improving indicators, the state could profitably implement some of its approved but unissued bonding to fund strategic investments. As the theoretical case is stronger for the second CCEA scenario, the low bank rate, CCEA uses it in conjunction with forward looking statements from the State Treasurer regarding the administration’s intentions to borrow and (presumably) expend funds. Governmental capital expenditures are assumed to be proportional among industries designated in Bond Commission approvals over the first half of this forecast period.
The optimum use of these approved investments will depend on implementation that acknowledges which projects have the potential to extend short- and long-term benefits, a perspective securable through a uniform scoring process.
Keywords: CT Bonding Commission, industry sectors, Prioritization scoring
JEL Classification: H11, H74, H83, R11
Suggested Citation: Suggested Citation