A major Wall Street credit rating agency weighed in on Connecticut’s school funding crisis this week, saying an overhaul would improve the credit standing of the state’s poorest cities.
Wall Street
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Another Wall Street agency downgrades CT’s credit rating
Connecticut’s longstanding fiscal problems continued to raise concerns on Wall Street Tuesday as a third major rating agency downgraded the state’s credit ranking. Kroll Bond Rating Agency announced its downgrade Tuesday, citing Connecticut’s high debt, low reserves, eroding income tax receipts and a lack of wage growth.
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Labor costs, tax receipts, threaten new CT budget before it starts
With Connecticut’s new fiscal year set to begin Friday, serious issues — involving both spending and revenue — have arisen in recent weeks that challenge state government’s new spending plan before it’s even begun. And a major Wall Street credit rating agency questioned Monday whether Connecticut’s fiscal house is in order.
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New CT budget contributes to credit downgrades from Wall Street
The new state budget’s ability to mitigate longstanding fiscal problems got poor marks Thursday on Wall Street as two of the four major rating agencies downgraded Connecticut’s credit ranking — probably boosting borrowing costs in the future.
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CT’s top taxpayers took a big earnings hit last year
Connecticut’s 50 largest state income tax filers reported nearly $3 billion less in quarterly earnings this spring than they did one year ago — which resulted in a $217 million hit to the state’s coffers, the legislature’s nonpartisan fiscal staff reported Wednesday.
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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.
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Lembo reports $220M deficit, confirms eroding tax receipts
State Comptroller Kevin P. Lembo certified a $220 million deficit Tuesday for the current fiscal year, a report that largely echoes last week’s warning from the legislature’s nonpartisan analysts about eroding state income tax receipts.
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Nappier: Malloy’s budget doesn’t cover state’s credit card bill
Gov. Dannel P. Malloy’s new budget proposal could be $50 million to $74 million out of balance if state Treasurer Denise L. Nappier and the legislature’s nonpartisan analysts are correct about what Connecticut owes on its credit card.
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State must cut its borrowing to avoid maxing out credit card
Connecticut is on pace to exceed its hard credit card limit by more than $320 million in two years — a projection that will tighten available borrowing for local schools, public colleges and universities, state building renovations and various projects in legislators’ districts.
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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.
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CT staring at another $1B deficit after next state election
Since Gov. Dannel P. Malloy’s administration announced state income tax receipts were lagging due to weak stock market earnings, much of the Capitol’s focus has been on the relatively small hole it opened in the current budget. But the projected loss of $100 million in tax receipts this year also exacerbates a much bigger budget problem just down the road.
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Lembo says Wall Street, other factors, could strain budget
Though the new state budget is just two months old, Connecticut’s chief fiscal watchdog already is warning about several problems that could push state finances into the red.
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New CT budget gets mixed reviews from Wall Street
While praising Gov. Dannel P. Malloy and the legislature for adopting a two-year plan that is balanced and relies on few one-time revenues, the agencies also noted that Connecticut continues to struggle with “tepid” revenue growth and a small budget reserve that leaves the state vulnerable to “future fiscal shocks.”
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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.
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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.