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State Prepares for $550 Million Emergency Loan

Connecticut readies for the possibility of emergency financing.

 

Connecticut is preparing a contingency plan in case the state has trouble paying its obligations. Treasurer Denise L. Nappier outlined the plan in a letter addressed to Gov. Dannel P. Malloy.

“Given the fiscal challenges facing the State, I believe it is prudent to prepare for the potential – though still not certain – need to borrow funds externally in order to fund cash flow requirements for current operations,” Nappier wrote.

The Connecticut Mirror published the letter.

The state faces a $415 million deficit in the current fiscal year. A number of cuts totaling $170 million enacted by Gov. Malloy brought the actual deficit down to $290 million.

The cuts affected many departments, such as $32.2 million from the Department of Social Services and $14.4 million from state colleges. 

Elyse December 06, 2012 at 12:46 AM
Let's see, we have a $415 million deficit, yet spend $860 million annually to entice businesses to move to the state. Perhaps we should stop trying to entice companies to move to such a highly taxed state and be in the black, and then we wouldn't have to bribe people to move here...
Cliff Cuming December 06, 2012 at 02:22 AM
STOP! Borrowing money to pay for current operations is a HUGE problem. It is one thing to borrow to finance construction or infrastructure projects but it is absolutely foolish to borrow for day to day wants. Maybe it's time for Hartford dems to knock on Obama's purse to bail out ct politicians that put us into this mess. (Detroit is doing it today) Pack your bags.
Cliff Cuming December 06, 2012 at 02:46 PM
AZ I have a question for you. Does your Obamaphone work when you have your head in the sand (or elsewhere?)
Cliff Cuming December 06, 2012 at 03:47 PM
It would be a wonderful world but for excessive government spending and the suckers who buy into it. And now, your petulant obama is stamping his feet cause Congress won't give him a limitless credit card.
Alethiologist December 06, 2012 at 05:06 PM
People change behavior in response to taxes, raising them can result in getting less revenue. John Kennedy said, "It is a paradoxical truth that tax rates are too high today and tax revenues are too low -- and the soundest way to raise revenues in the long run is to cut rates now."
Ipso Facto December 06, 2012 at 05:33 PM
Cliff -- I can't decide what's more obnoxious. Your whining or your utterly groundless claims. First of all, he is OUR President. If you don't like that then self-deport; everyone would be happy with that, certainly you. Second, the Administration has been doing a great deal to reduce unnecessary spending. But yes we have a big deficit and a shattered economy that needs to get back on track. Both the big deficit and the shattered economy were unquestionably the result of the last Republican President in the White House. Funny, I don't remember you or any other Republican whining when that incompetent spent like a drunken sailor, lying us into a war that cost us trillions. Or for that matter when he walked out of office leaving us with more than $10 TRILLION in debt (having inherited a budget surplus) and a destroyed economy which necessitated spending trillions more to keep us from slipping into Great Depression 2. Suddenly, with Obama in office you Teanderthals are all concerned about our economic health. What a surprise...NOT. There's a great saying: Lead, Follow, or Get The Hell Out of The Way. Suck it up and get with the program pal.
Connecticut15 December 06, 2012 at 06:17 PM
Ipso - deficit is not the same as debt. Increasing the debt by 60% in 3 years is unacceptable. Having a $1.2 trillion deficit is not acceptable. Increases in spending on entitlements continues, wasteful spending and fraud... The housing crisis was caused by wrong philosophies and banking standards imposed by policies and policymakers claiming that everyone deserves to own a house apparently without the ability to pay for it. Fannie Mae/Freddie Mac, their politicians and supporters, the Clinton Dept of Justice folks and chronies who infiltrated those entities are the problems and their policies need to be stopped.
Connecticut15 December 06, 2012 at 06:23 PM
Ipso, taking your advice to 'lead, follow, or....get out of the way' should apply to those currently in office. Putting off the hard WORK to get to solutions that can be agreed upon should not have happened, but that is just what this president and his chronies did. They put off working on anything except that which they would force upon the American people - a healthcare bill that no one could participate in negotiations and no one could read until the 11th hour. Transparency must have different definitions in alternative universes. They couldn't even have plans in place to protect our diplomats in Libya (Benghazi)nor act to protect them nor get their stories straight afterwards. How many National Security Briefings did Obama miss this past year, over 60%? But plenty of golf, basketball, photo ops, fundraisers. No real work being done.
Connecticut15 December 06, 2012 at 06:30 PM
Ipso - let's stop with the snipes. If your 'teanderthal' comment were directed at tea party then your projected associations are truly infantile and reflect solely upon you. Tea party 'members' or philosophies are those of limited government to ensure freedom and liberty; they would also include accountability and real transparency, not the joke perpetrated by the existing powers. Also, there was that terrible advanced tech bubble in 1999-n2000 that the Clinton administration did little about - one that had large negative affects on people's savings and incomes. I understand that a lot of the so-called 'surplus' was on paper only after the bubble burst - never truly realized.
Cliff Cuming December 06, 2012 at 06:38 PM
Ipso The DEBT when Bush took office in 2000 was 5.6 trillion. 8 years later it was 10.0 trillion for an average annual increase of .55 trillion dollars. The DEBT when Obama took office was 10 trillion. 4 years later it is 16.3 trillion for an average annual increase of 1.575 trillion or 3 times the bush increase. Also, in year 2 of obama's reign, nearly 1 trillion was returned to the treasury by bush era stimulus recipients meaning you can deduct 1 trillion from bush's numbers above and add them to obama's thus revealing the true nature of the spending debacle. Deficits cause debt. Bush ran up the debt fighting wars we should have avoided and stimulating the economy to beat back the housing crisis --- both failed. Obama is repeating the mistake but doing it 3 times faster. BTW, the only thing I find obnoxious is willful ignorance.
Ipso Facto December 06, 2012 at 11:13 PM
That is indeed who I am directing my comments at, Con15 -- the "Tea Party" which is primarily an "astro turf" organization posing as a grass roots, local citizen-driven effort. Freedom Works was and is nothing more than a front funded by the Koch Brothers to promote their extreme reactionary agenda. Their daddy was a founder of the John Birch Society back in the day -- so extreme that Bill Buckley and Barry Goldwater got as far away from them as possible. Limited government sure suits them down to the ground. Kill the EPA, OSHA, SEC, the Fed..any arm of the government that would protects the public at large but which increases their cost of doing business. This of course dovetails nicely with that loon Grover Norquist who wants to "shrink the government to the size we can drown it in a bathtub. You are welcome to your point of view, but as a Republican I don't view your goals as ensuring freedom and liberty in the 21st century. Maybe freedom and liberty as it existed in the 18th century is more accurate. Invading the privacy rights of citizens, restricting availability of healthcare, waging war on women and minorities...that's not the party of Lincoln or Reagan -- indeed, Reagan raised taxes more than a dozen times in office and so he couldn't even be in your party. Alper and his cronies (Cliff -- take note this is how it's spelled correctly) ran a lot of good Republicans out of office. I take this personally. Start coming clean on your real goals, pal.
Connecticut15 December 06, 2012 at 11:41 PM
No - the "Tea Party" is not astro turf - take your sound bites from the liberals it seems. Perhaps you could read "Shadow Party" about "fronts" that fund extreme agendas - George Soros' Open Society. His objective and goals and how he approaches them are eye opening, illuminating a maniacal drive, manipulation, and control in all things political, economic, social - hardly grass roots but with tentacles triggering all sorts of groups and activists.
Ipso Facto December 07, 2012 at 04:11 PM
Can I call you "Con", Al? Seems appropriate since the Tea Party is a big con job directed by dangerous extremists like the Koch Brothers; I'm glad you brought up the term "shadow party" because that describes you to a tee (or tea). To reactionaries, many of the points I noted in my last post may sound "liberal". That's because your agenda is extreme. EPA and OSHA were established in law by Republicans. FEMA traces its roots back to the Congressional Act of 1803. Reagan raised taxes more than a dozen times. I remain a loyal Republican and am saddened by the lives you have ruined and wreckage you have wrought with your furious antics and bluster. And what have you accomplished? For our State your extremist candidates have never won federal office; where we could have good Republicans like Shays in the Senate, you loons ran a political novice who was so silly even people of her own gender voted against her. Same thing happened in other States; the Senate would be Republican were it not for the stupidity of your "shadow party"...notwithstanding almost a billion dollars in "dark money". The pendulum is now swinging back, happily. Many of the extremists elected in 2010 are thankfully gone. That lunatic DeMint is now out of the Senate. Maybe we will be able to return to our roots as a democracy...with our elected officials compromising for the good of all. And anytime I see a loony/nasty comment from you or your cronies, you bet I'm going to call you out. Sort of a "truth squad".

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