News Junkie: Bad things will happen Oct. 1, but a cash flow problem won’t be one of them

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.”

Read the full story on CT News Junkie.

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Nancy came to Norwalk in September 2010 and, after reporting on Norwalk for two years for another company, resigned to begin Nancy On Norwalk so she engage in journalism the way it was meant to be done. She is married to career journalist Mark Chapman, has a son, Eric (the artist and web designer who built this website), and two cats – a middle-aged lady and a young hottie who are learning how to peacefully co-exist.