A lack of strategic and long-term state budget planning, combined with some short-sighted fiscal choices and the declining economy, present significant budget challenges for Connecticut's next legislative session. This candidate brief finds that short-term budget gimmicks used to achieve a "balanced" budget in previous years (such as the use of one-time revenues) have created budget "holes" in future years. To put Connecticut's fiscal house in better order before the Baby Boomers begin to retire, the next state budget should raise additional revenues while the Boomers are still in the labor market, in a manner that improves the equity of our state and local tax system. This could help to a) fulfill current state obligations rather than transferring them to the next generation or to our cities and towns; b) reduce state debt and pay down pension and other unfunded obligations; c) fully fund the state's "Rainy Day" budget reserve fund, and d) increase the level of state investment to assure equal opportunity for children and families, an adequate infrastructure, and a healthy economy. (September 2008)

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