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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. 

Paul Alexander December 06, 2012 at 04:54 AM
From "Largest tax increase in state history" to "contingency loan in case the state has trouble paying its obligations" all in the span of two years...and all anyone wants to discuss is where is the best place to eat in town???
Paul Alexander December 06, 2012 at 05:14 AM
Why are all the so-called "journalists" missing in action on this issue of the governor's fiscal misfeasnace??? Instead of just reporting that fact that the state's finances are in extremis, how about some J-School 101...Who, What, Where, When, Why, How...on this issue. Why aren't you on this story more aggressively???
Veritas vos liberabit December 06, 2012 at 02:01 PM
Rasmussen, It appears that you are the ONLY one with this particular OBSESSION, get over it, you live in Florida, let CT residents decide what their concerns are. You are driving off Patch readers with your senseless rants. Follow the stock market, looks like 2013 will be another good year,as the Obama recovery continues,, visit the The Okefenokee Swamp, I hear that it's spectacular this time of year.
Daniel Patti December 07, 2012 at 12:57 AM
Hey Paul, this video is on ZeroHedge.com http://m.youtube.com/#/watch?feature=player_embedded&v=iTBODoBaCns&desktop_uri=%2Fwatch%3Fv%3DiTBODoBaCns%26feature%3Dplayer_embedded
Carl Garrison January 11, 2013 at 10:36 AM
Haha money simply gets pushed around does it? I wonder who they are going to borrow from when they say “borrow externally”. I wonder if that money possibly comes from China or one of the Arab nations – now that would be interesting to find out. They could work very much like the way logbook loans work in the UK, where the debtor keeps the car but the lender owns the car until the debt is returned. The catch of course is that the lender can repossess the car without a court order. I wonder if that could be done with some land? Now that would be interesting to watch.

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