State governments can do a lot with the state and local coronavirus fiscal stimulus funds they received as part of last year’s $1.9 trillion US bailout. One thing they are expressly prohibited from doing is putting that money into public servants’ pensions. Connecticut does it anyway.
Gov. Ned Lamont’s $48 billion two-year budget proposal just released $2.9 billion in special deposits to state employee and teacher pension funds. This is an amount equal to the federal aid received by the state as part of the American bailout. These special deposits are in addition to the $7.2 billion in regularly scheduled state contributions in Connecticut to the two retirement systems.