Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Finances topic
No spam. Unsubscribe anytime.
Connecticut treasurer says state in stronger financial position after pension turnaround
Summary
State Treasurer Eric Russell told a Greenwich town hall that Connecticut has rebuilt reserves, improved pension funding and posted strong investment returns, freeing budget capacity but leaving long-term work ahead.
Treasurer Eric Russell said Friday that Connecticut is in a markedly stronger fiscal position than a decade ago, pointing to seven consecutive balanced budgets, a rainy day fund at 18% of one-year general fund spending and what he described as about $4.8 billion in reserves.
"Big picture is that we're in a pretty strong financial position overall," Russell told the Town of Greenwich audience. He credited recent work on pension funding and debt reduction, saying the state has made more than $10 billion in additional pension contributions since 2021 and that has helped free roughly $800 million a year from required pension payments.
Russell said the state's pension assets are now roughly $70 billion and reported a fiscal-year 2025 return of 10.14 percent (calendar-year performance he noted was about 14 percent). He said the treasurer's office reduced the long-standing assumed return to 6.9 percent to align assumptions with a more realistic long-term target.
On cash management, Russell said Connecticut's Short-Term Investment Fund averaged about $10 billion on hand in FY2025 and produced a 4.86 percent return, which he said added roughly $865 million in returns to the state and municipalities and about $37 million in excess over benchmark performance.
Russell described steps the office has taken to lower costs, professionalize investment staff and reduce manager fees. He said the combination of stronger returns, reduced liabilities and debt-retirement steps has led to credit upgrades from rating agencies and should continue to improve the state's fiscal flexibility.
Russell cautioned that the state had to remain vigilant. "The challenge here is many of the challenges that we face were created over a long period of time, and it's not going to fix itself overnight," he said, noting further reforms and steady funding remain necessary.
The treasurer took audience questions after his remarks; questions ranged from unclaimed property and asset-allocation choices to migration and housing pressures that undercut workforce and fiscal goals. The town hall closed with thanks to Russell and local organizers.
