Connecticut Debt Feud Shows Malloy’s Budget Strain
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Connecticut Governor Dannel Malloy’s budget plan and its handling of bond payments are sparking a feud with Treasurer Denise Nappier that threatens to undermine confidence in the state’s finances.
Malloy announced his budget proposal for the next two fiscal years on Feb. 18. Two days later, Nappier, also a Democrat, sent a letter saying the plan underestimated expenses for debt service by $325 million. The second-term governor’s proposal assumes the state can save that amount by refinancing as well as selling bonds for more than 100 cents on the dollar, which is “equivalent to counting one’s chickens before they hatch,” she wrote.