Connecticut

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.

The Democratic leadership of the Connecticut General Assembly has called for direct talks with Gov. M. Jodi Rell over the $500 million fiscal 2010 budget deficit.

Connecticut Gov. M. Jodi Rell yesterday proposed the construction of a new hospital and health care facilities that would use $227 million of state general obligation bonds and other funding sources.

The Connecticut Housing Finance Authority plans to begin selling $275 million of bonds today in a deal that will help effectively establish a revolving fund.

Connecticut Gov. M. Jodi Rell yesterday called for a new bond program that would guarantee loans to business owners as part of a package of budget proposals.

Connecticut Gov. M. Jodi Rell yesterday called for an expiration date on unused bond authorizations and for new restrictions on the state’s budget reserve fund. The measures will be included in her budget proposal to be presented today before the General Assembly.

Yale University got the green light yesterday to bring $800 million of tax-exempt bonds to market next month, though the offering is expected to be considerably smaller.

Connecticut is tapping new bond programs to set the stage for a large-scale waterfront development in Stamford.

Connecticut Gov. M. Jodi Rell last week announced the state had identified buildings and parcels of land to be sold to raise money under its enacted budget.

A federal appeals court last week rejected an appeal filed by William A. ­DiBella, former majority leader of the Connecticut Senate, and his consulting firm, North Cove Ventures LLC, to overturn a 2007 jury verdict and judgement against them for their involvement in a fraudulent pay-to-play scheme in connection with the state’s pension fund.

Connecticut will round out the year with a new public-private partnership for highway service plazas. In December, a consortium will take over operations of 23 service plazas and sink in millions of dollars to upgrade the facilities.