Connecticut

Connecticut passed a budget, but Gov. Dannel Malloy is hardly celebrating. Malloy is left with a $1.6 billion shortfall after state employee unions failed to ratify a labor accord intended to balance Connecticut's two-year, $40.1 billion spending plan.

Connecticut is set to form a new bonding authority that will oversee six state airports, including the Bradley International Airport.

Connecticut's Treasury Department is looking for investment banking firms to form a new pool of underwriters that will work on general obligation and revenue debt.

Connecticut may implement tolls and possibly leverage that revenue stream to help finance a potential $1 billion Route 11 extension project in the southeastern portion of the state.

Connecticut Gov. Dannel Malloy last week signed into law a $40 billion biennial budget that includes across-the-board tax increases and relies upon $2 billion of projected employee savings.

Connecticut this week will issue $353 million of general obligation bonds, including $337.6 million of SIFMA index bonds, to retire bond anticipation notes that are coming due.

Connecticut Gov. Dannel Malloy on Wednesday proposed a $18.27 billion general fund budget for fiscal 2012 that doesn’t borrow for operating expenses and would reduce a planned deficit borrowing in the current fiscal year.

Connecticut Gov. Dan Malloy’s first official act after being sworn in Wednesday was to issue an executive order requiring the state to craft budgets using generally accepted accounting principles.

The Mystic Aquarium & Institute for Exploration in Connecticut got a lifeline on Tuesday from Citi, which agreed to forgive $13.4 million of debt and convert $19 million of outstanding bonds into an effective loan.

Stamford, Conn., plans to competitively market $35 million of bonds next week and take advantage of federal bond programs due to expire at the end of the year.

Connecticut plans to use a budget surplus to reduce a planned deficit borrowing by about a third, Gov. M. Jodi Rell announced Friday.

The Connecticut State Bond Commission approved two transactions totaling $1.47 billion at a special meeting on Tuesday. Both deals are expected to price before the end of the calendar year.

Connecticut Gov. M. Jodi Rell Tuesday postponed a meeting of the State Bond Commission until Aug. 17 after a member complained about lack of information.

States and municipalities in the Northeast sold $58.9 billion of debt in 1,062 issues during the first six months of 2010, eking out a 2% increase over the first half of 2009.

The Georgetown Special Taxing District in Connecticut received a forbearance last week on $1.5 million of tax anticipation notes after failing to pay them on time.

Fitch Ratings late Thursday downgraded Connecticut’s general obligation debt to AA from AA-plus, citing the state’s reduced financial flexibility, reliance on debt to close budget gaps, and structural imbalance. Fitch also revised its outlook on the state to stable from negative.

The University of Connecticut plans to market tax-exempt bonds to institutional investors tomorrow in a $138.8 million offering that began a two-day retail order period on Friday.

Connecticut lawmakers yesterday appeared to have reached agreement on $950 million of deficit borrowing to balance the state’s biennial budget.

As Connecticut lawmakers met yesterday on the day before the end of the 2010 legislative session, it was unclear whether there was a deal to close the state’s $700 million fiscal 2011 budget gap.

Connecticut lawmakers yesterday privately negotiated measures to close an estimated $700 million budget gap for the next fiscal year. Still up in the air is a $1.3 billion securitization plan that would likely involve the issuance of tax-exempt bonds.