Connecticut

Asset Outcomes

Connecticut scores slightly above the national average, earning a B and ranking 20th in the Asset Outcomes Index. The state?s final grade resulted from extremely high and low scores across the index. For example, in the measures of financial assets, Connecticut boasts a mean net worth of $140,989 (6th), yet the state has a below-average rank on the gap in wealth between white and non-white households (28th), a higher average asset poverty rate (ranking 29th), and a significant number o f households possessing zero net worth (36th). The asset gap between men and women, though, is relatively small (6th). The state also dips down in opportunities to accumulate business capital, ranking 2nd to last in private loans to small businesses (49th).

Owning a home is the largest source of assets for most Americans, but in Connecticut, this opportunity is limited. The homeownership rate in Connecticut is below the median (28th), and in particular, the gap in homeownership between white and non-white families is the 5th largest among all states.

With regard to human capital measures, Connecticut ranks 1st and 3rd in the nation for basic educational proficiency in reading and math, respectively, and 5th for overall college attainment. The state sinks back down again when considering parity with regard to income, race, or gender, ranking 39th in Head Start coverage, 42nd in the gap in college attainment between whites and non-whites, and 47th in the gap in college attainment between men and women. The state improves when looking specifically at measures of asset protection and health coverage, ranking 1st in the nation in employer-provided health insurance.

Asset Policy

Connecticut earns a B on the Asset Policy Index, ranking 12th in the nation. Importantly, Connecticut is one of very few states with a state minimum wage higher than the federal minimum wage. State policymakers show commitment to investments in human capital assets, as evidenced by a state-funded pre-kindergarten program, supplementary funds for Head Start, and significant investments in K?12 education expenditures (6th).

On the other hand, Connecticut?s asset protection policies need significant improvement. Connecticut ranks 48th in the nation in unemployment insurance benefit levels and has no state policy promoting public or private family leave benefits. These policies can help protect families from financial hardship when working members must take essential time off for family reasons. State policymakers have also not taken adequate steps to protect homeowners from predatory lending or insurance redlining.

Tax Policy and Accountability

Connecticut does a fair job on tax policy accountability. The state prepares a tax expenditure report that itemizes the value of revenues foregone via tax breaks, and places this report on the web. It does not, however, have the capacity to determine the impact of state taxes or changes in the tax code on taxpayers of all incomes.