Connecticut may have just a week’s worth of cash
Thursday August 19, 2010
NEW YORK (Reuters) – Connecticut this autumn probably would have just a little more cash than it needs to pay a week’s expenses unless it issues $520 million of debt, according to the state treasurer.
Treasurer Denise Nappier, in a letter to the Connecticut Bond Commission, outlined her response to concerns that were raised about the state’s finances by a legislator.
If the planned offering of general bond obligations were delayed until 2011, “This coming fall the state would likely have just over a week’s worth of expenses in the bank — a level lower than advisable,” Napier wrote in an August 13 letter that is posted on her web site: http://www.state.ct.us/ott/pressreleases/press2010/PRNappierToSBC081310.pdf
“Conceivably, the State may run out of funds for capital expenses that have already been authorized, allocated and incurred, such as school construction projects,” she added.