Swordsmyth
06-30-2017, 04:24 PM
With Maine looking like it will be the first state to shut down (http://www.zerohedge.com/news/2017-06-30/maines-lepage-says-he-wont-sign-budget-bill-ensuring-shutdown-will-begin) heading into the new fiscal year on Saturday morning and perhaps beating Illinois to the punch, moments ago Connecticut, as previewed last night (http://www.zerohedge.com/news/2017-06-29/its-not-just-illinois-connecticut-faces-friday-day-reckoning), will also enter the new fiscal year without a budget, inviting rating agencies to downgrade it to Illinois' "barely junk" rating or perhaps making CT the first US junk-rated state.
Lawmakers and the governor had been unable to reach an agreement on a two-year budget that will cover a projected $5 billion deficit for months, and not even the threat of the new year prompted them to move as we expected (http://www.zerohedge.com/news/2017-06-29/its-not-just-illinois-connecticut-faces-friday-day-reckoning).
Meanwhile, Governor Malloy signed an executive order taking over the state's spending authority which will cut most services but at least keeps the government open. From Reuters:
CONNECTICUT GOVERNOR SIGNS EXECUTIVE ORDER TO TAKE CONTROL OF STATE SPENDING AFTER FAILURE TO PASS FY 2018/19 BIENNIAL BUDGET
CONNECTICUT EMERGENCY SPENDING PLAN KEEPS STATE GOVERNMENT OPEN BUT CUTS SERVICES
As a result of the failure to pass a budget, AP (https://www.usnews.com/news/best-states/connecticut/articles/2017-06-30/social-service-agencies-prepare-for-deep-cuts-with-no-budget) reports that nonprofit social service agencies that rely on state funds are preparing for deep cuts. Democratic Gov. Dannel P. Malloy, who wanted the General Assembly to at least pass a proposed three-month mini-budget, is expected to reluctantly sign an executive order that maintains only essential state services.
More at: http://www.zerohedge.com/news/2017-06-30/connecticut-gov-signs-emergency-spending-measure-lawmakers-fail-pass-budget
Lawmakers and the governor had been unable to reach an agreement on a two-year budget that will cover a projected $5 billion deficit for months, and not even the threat of the new year prompted them to move as we expected (http://www.zerohedge.com/news/2017-06-29/its-not-just-illinois-connecticut-faces-friday-day-reckoning).
Meanwhile, Governor Malloy signed an executive order taking over the state's spending authority which will cut most services but at least keeps the government open. From Reuters:
CONNECTICUT GOVERNOR SIGNS EXECUTIVE ORDER TO TAKE CONTROL OF STATE SPENDING AFTER FAILURE TO PASS FY 2018/19 BIENNIAL BUDGET
CONNECTICUT EMERGENCY SPENDING PLAN KEEPS STATE GOVERNMENT OPEN BUT CUTS SERVICES
As a result of the failure to pass a budget, AP (https://www.usnews.com/news/best-states/connecticut/articles/2017-06-30/social-service-agencies-prepare-for-deep-cuts-with-no-budget) reports that nonprofit social service agencies that rely on state funds are preparing for deep cuts. Democratic Gov. Dannel P. Malloy, who wanted the General Assembly to at least pass a proposed three-month mini-budget, is expected to reluctantly sign an executive order that maintains only essential state services.
More at: http://www.zerohedge.com/news/2017-06-30/connecticut-gov-signs-emergency-spending-measure-lawmakers-fail-pass-budget