HARTFORD, Conn. — Wall Street analysts found that even though Connecticut hasn’t been able to pass a two-year budget, its cash position in the short-term is fairly healthy.
Connecticut has a more than $2 billion cash balance and revenue appears to be conforming to the forecast so far this fiscal year, according to Marcia Van Wagner, vice president and senior credit officer, and Dan Seymour, vice president and senior analyst with Moody’s Investors Service.
“The budget standoff does pose some liquidity risk, because about half of the state’s available cash balances consist of bond proceeds,” Van Wagner and Seymour said in a comparison of Connecticut and Pennsylvania. “Because the absence of a budget prevents the certifications necessary for the state to issue additional debt, this resource will shrink as capital projects continue to draw down bond proceeds.”
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