Bloomberg: Population Loss Cost Connecticut $2.6 Billion
Population loss cost Connecticut $2.6 billion in lost income in 2016 according to an analysis from Bloomberg.
The financial news outlet’s report says that’s the equivalent of 1.6% of the state’s annual adjusted gross income.
Those who left Connecticut in 2016 earned an average income of $122,000, 26% higher than the average income of new arrivals to the state.
Departures from the state also outnumbered those who remained by a five-to-four margin.
IRS, Census Data
Bloomberg based its analysis on data from the U.S. Internal Revenue Service and the U.S. Census Bureau.
The analysis included all 50 states and Washington, D.C., finding that 10% of the country’s population—about 35 million people—moves annually. Most movement is within the same county.
Connecticut’s adjusted gross income was -1.6%, the highest percentage of the 26 states with negative income.
The nation’s capital lost 1.47% of its annual gross income, followed by North Dakota ( -1.17%), New York (-1.1%), and Illinois (-1.09%).
New York had the highest annual net income loss, with $8.4 billion leaving the state in 2016.
Illinois lost $4.8 billion, followed by New Jersey ($3.4 billion), Pennsylvania ($2.6 billion), and Connecticut.
‘Numbers Don’t Lie’
In an open letter this week to state lawmakers, CBIA president and CEO Joe Brennan said the Bloomberg analysis confirmed concerns about wealth leaving the state.
Brennan said the report underscores the severity of the state’s economic and job growth struggles, which he called “unacceptable.”
“For too many years, our state’s economic performance has trailed the region and most of the nation, and not by a small amount,” Brennan wrote.
“In 2018, both our economic growth and job growth were about one-third of the U.S. as a whole. We have grown at only half the rate of the rest of New England.”
Brennan added that policy choices were holding Connecticut back, urging policymakers to “to take a hard look at where we are. Numbers don’t lie.”
Florida Gains Big
The big winner among all states? Florida, which netted $17.2 billion from those who moved to the state.
That represents almost 3% of the state’s adjusted gross income in 2016. South Carolina, Idaho, and Oregon were also among the biggest gainers in percentage terms.
The average gross incomes of new Florida residents exceeded $100,000, with those moving to the state from Connecticut averaging $253,000.
“Job growth, lower costs of living, state budgetary challenges, and more temperate climates are the driving factors behind migration,” Bloomberg said.
“Business formation can benefit from positive migration, too. Many of the states with the biggest income inflows from migration also lead in new business creation, including South Carolina, Florida and Tennessee.”
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