Skip to comments.(CT)Cash flow report sparks fears state may need to borrow to pay bills on time
Posted on 06/08/2012 12:52:08 PM PDT by matt04
A new report showing state government continues to tap into its capital project accounts to pay its operating bills sparked bipartisan fears Wednesday that Connecticut may need a loan later this year to keep its finances running smoothly.
And though state Treasurer Denise L. Nappier also wrote that total available cash remains "adequate" right now, she added that pressures on the state's cash flow continue to mount.
"The common cash pool balance has fallen substantially during the year," Nappier wrote June 1 in her monthly report to the Finance, Revenue and Bonding Committee. "...The common cash pool is trending downward over time and the need for temporary transfers or other resources is growing."
There has been a "significant decline" over the past 12 months, the treasurer wrote. The balance stood at $121 million on May 26, down from $895 million at the same point in 2011.
Weekly disbursements from the entire common pool average approximately $540 million, according to the treasurer's office.
The treasurer, a Hartford Democrat, also noted that her office transferred funds from capital programs both in early June and in April to help cover operating costs. This also was done in January and March.
Connecticut operates from a common pool that mingles tax revenues, federal grants and receipts from fees and licenses with borrowed funds. The treasurer's office is allowed to transfer dollars -- temporarily -- between operating and capital programs. Though it is done infrequently, it has been employed during tough fiscal times when bills exceed tax and other operating fund receipts.
Minority Republicans in the House of Representatives bristled in March when Nappier accused them of "misleading" voters about the health of state finances.
(Excerpt) Read more at ctmirror.org ...
I can predict what comes next...
Malloy will raise taxes and more people and business will flee the state and Malloy will be clueless to the reason.
I will be in gloater's heaven when we go up for annual summer picnic.