The Senate voted late Thursday rebalance Connecticut’s credit card in the face of shrinking tax revenues, canceling or delaying about $1 billion in financing for a wide array of projects and programs, and to authorize $380 for municipal school construction, down significantly from recent years.
bonding
Posted inMoney
Most Wall Street agencies have ‘negative outlook’ on CT finances
Three of Wall Street’s four major credit rating agencies have assigned a “negative outlook” to Connecticut’s bond rating — a warning that the state could face a downgrade, and higher borrowing costs in the next year or two.
Posted inMoney, Politics
Moody’s: GE’s departure ‘underscores’ Connecticut’s fiscal, economic woes
While the partisan debate over GE’s departure from Connecticut continues, a major Wall Street rating agency sees a correlation between the move and the state’s ongoing fiscal and economic woes. Moody’s Investors Service cited the impending move as it issued a “credit negative” — not a formal rating downgrade — but rather a public statement about a development that could harm Connecticut’s financial standing in the long run.
Posted inMoney
S&P warns Malloy’s pension plan could cause bond rating cut
A major Wall Street rating agency warned it might lower Connecticut’s bond rating — pushing up interest costs on capital projects — if the state adopts Gov. Dannel P. Malloy’s plan to restructure contributions to the employee pension fund.
Posted inEducation, Money
Auditors: UConn ‘burdened’ CT with $77M in ‘unnecessary interest costs’
The University of Connecticut burdened the state with an estimated $77 million in “unnecessary interest costs” when it secured financing 19 months ago for a new ambulatory services center in at the UConn Health Center in Farmington, the state auditors of public accounts reported Wednesday.
Posted inMoney, Politics
Partisan debate heats up as state’s credit card nears its limit
Gov. Dannel P. Malloy drew criticism this year when he warned Wall Street investors he would boost state government’s effective credit card limit by 40 percent this year. But if the State Bond Commission approves all of the financing Malloy has proposed for next week’s meeting, the governor will have used up 95 percent of his self-imposed credit limit – with five months still to go in the calendar year.
Posted inMoney, Politics
Malloy gets his transportation bonding — but not his ‘lockbox’
Gov. Dannel P. Malloy got the $2.8 billion in bonding he needs to launch his transportation overhaul initiative — but not the legal ‘lockbox’ he insisted upon to protect it.
Posted inMoney
Price of first step on Malloy’s 30-year journey is $2.8 billion
The administration of Gov. Dannel P. Malloy asked a legislative committee Monday to approve $2.8 billion in additional transportation borrowing over five years, a down payment on what Malloy hopes will be a $100 billion infrastructure investment over three decades.
Posted inMoney
Nappier seeks middle ground with Malloy on bond premiums
State Treasurer Denise L. Nappier unveiled a compromise plan Monday to reform state bonding practices while also giving Gov. Dannel P. Malloy and the legislature some flexibility to use borrowed funds to balance the next two-year budget.
Posted inMoney
Malloy to Wall Street: Expect state borrowing to jump 40 percent this year
Gov. Dannel P. Malloy recently warned Wall Street the state plans to increase borrowing dramatically over the next year. But while Connecticut uses borrowing primarily to finance capital projects, Republican legislative leaders fear the planned spike also signifies that a disturbing trend of borrowing to cover day-to-day expenses will get worse.
Posted inMoney, Politics
Dispute over Malloy borrowing plan heats up
Updated 1:25 p.m. Tuesday
Tensions built Monday between Gov. Dannel P. Malloy’s administration and state Treasurer Denise L. Nappier over the governor’s controversial proposal to use $325 million in borrowed funds to pay off debt over the next two years.
Posted inMoney, Politics
Treasurer: Malloy plan could harm state’s reputation with investors
State Treasurer Denise L. Nappier warned Gov. Dannel P. Malloy on Friday that one component of his new budget could harm Connecticut’s reputation on Wall Street. In a letter released to the media Friday evening, Nappier – a Democrat – called the Democratic governor’s plan to rely on $325 million in borrowing to cover operating costs “too aggressive.”
Posted inMoney
Governor’s budget needs $300M in borrowing to stay in balance
Gov. Dannel P. Malloy’s new budget would need more than $300 million in borrowing to cover operating costs over the next two years if projections from nonpartisan analysts and the treasurer’s office are correct. The governor’s budget relies on a controversial fiscal practice that faces increasing scrutiny and drives up the interest rates Connecticut pays to borrow funds for school construction and other capital projects.
Posted inMoney, Politics
GOP wants to team up with Democratic treasurer to rein in ‘bond premiums’
Republican legislative leaders hope they have a key Democratic ally in their fight to reform state budget practices tied to borrowed funds. Both Treasurer Denise L. Nappier, a Hartford Democrat, and nearly a half dozen GOP lawmakers have said they want to restrict how the state uses proceeds from bonds sold at premium rates.
Posted inMoney, Politics
New year brings another round in partisan battle over CT’s credit card
The new legislative session is less than one week old and Gov. Dannel P. Malloy and Republican state legislative leaders have resumed their battle over the health of Connecticut’s credit card.