Connecticut Budget Chief To Address Muni Analysts On His State's Finances
William J. Cibes Jr., Connecticut's budget chief, will address the Municipal Analysts Group of New York at a luncheon Oct. 11 at Manhattan's Downtown Athletic Club, the group has announced.
Mr. Cibes, who is the secretary of Connecticut's Office of Policy and Management, will present a "state of the state" address, according to an aide.
Connecticut's fiscal affairs are of particular interest to municipal analysts on Wall Street. Last year, Connecticut and its subdivisions sold $2.89 billion of bonds. The state historically has found ready buyers for its debt because its tax system included a levy on interest earnings that went as high as 14% for some residents.
But this fiscal year, the state harnessed new revenue engines, including taxes on wage and investment earnings, which will be subject to a 4.5% levy. Some analysts have wondered whether the lower levy on interest earnings would dampen demand for the state's tax-free paper.
Mr. Cibes ran for the Democratic gubernatorial nomination last year on a pro-income tax platform, but lost. He has been depicted by state lawmakers as the man behind the scenes who converted Gov. Lowell P. Weicker Jr. to the pro-income tax creed after being named budget chief.
Word of Mr. Cibes's speech comes with Connecticut in the midst of selling nearly $1 billion of notes to finance its accumulated deficit over five years. About $700 million of that borrowing, in fixed-rate form, has already come to market. And a $300 million, variable-rate portion is slated for sale sometime this month.
In addition, an incipient tax revolt threatens to undo the state's new tax on personal income. In 1971, Connecticut legislators repealed an income tax following a public outcry. Even if the new tax plan stays in place, analysts warn, the additional $1.1 billion burden it places on the state could further stunt Connecticut's economic growth.
To reserve a spot at Mr. Cibes's speech, call Amelia at 212-612-4098 by noon on Oct. 10.