Gov. Dannel P. Malloy challenged his Republican critics Tuesday to vote against — and not just complain about — his borrowing proposals, adding that the GOP historically votes with him on these matters nine out of 10 times.
Today’s meeting of the State Bond Commission could offer a preview of one of the key issues Republican legislators plan to campaign on this fall: Connecticut’s escalating debt.
The State Bond Commission is expected to approve $22 million in financing Friday to help a major hedge fund expand operations in Westport, Wilton and Norwalk.
This year the state borrowed approximately $2.7 billion by way of bonding – a lot money no matter how you look at it. As a matter of fact, it is the most the state has ever bonded. The cost of this year’s bonding is around $8,350,000 per annum in interest.Intelligent bonding is a necessary part of efficient working and modern government. When all is said and done, when you include the jobs created, resulting new tax revenue, and the like, the state bonding at 3.07 percent should result in a handsome profit.
Gov. Dannel P. Malloy warned Friday that the spending plan he will offer state legislators next week will be a “very austere” budget with no tax hikes. The Democratic governor, who needs to close a deficit projection topping $500 million in the preliminary budget for 2016-17, also all but ruled out use of the state’s modest emergency reserve.
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.
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.
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.
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.
The State Bond Commission approved $5 million in financing Wednesday to plan and design a new elementary school for the Sandy Hook section of Newtown.