Tuesday, December 04, 2012
State Needs Emergency Financing to Pay Bills Promptly
By Keith M. Phaneufwww.ctmirror.org
State government may to need secure $550 million in emergency financing to ensure it can pay its bills promptly this winter, according to a plan prepared by state Treasurer Denise L. Nappier and approved Monday by Gov. Dannel P. Malloy.
That proposal wraps a calendar year during which the treasurer frequently had to temporarily transfer funds from various capital programs to keep government’s operating accounts running smoothly.
This marks the second time in three years the state has needed short-term financing to help cover its operating expenses.
“For several months I have reported reduced cash levels for the state, particularly within the common cash pool that funds daily operations,” Nappier wrote Monday in her letter to the governor, adding she recently had to transfer another $362 million from capital programs after operating accounts slipped into the red. “Circumstances now warrant a contingency plan for ensuring adequate cash resources.”
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Comments: Comment Policy
Looks like we are in real trouble. Connecticut now showing negative balance and we are looking to borrow money to fund everyday business. Governor Malloy has run CT into the ground. This is really bad.
Just announced the state of Connecticut is low on cash, so state Treasurer Denise Nappier is seeking Gov. Dannel P. Malloy’s approval to seek up to $550 million in credit.
Connecticut has depleted all but $103 million of the $1.4 billion budget reserve as the state’s cash position has steadily fallen. The treasurer had to transfer $366 million from bond fund investment accounts. The common cash pool has a negative balance.
The treasurer has requested and the Governor has approved the need to borrow funds externally in order to fund cash flow requirements for current operations.
This is really bad—the Governor-if you remember—signed a document that does not allow him to layoff any workers for 4 years!! We are in real trouble.
Raise Taxes - collect less money while we are spending more!
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