Error Shackles Connecticut to a Debt Limit That Lawmakers Had Loosened
- Timing of deal means bond-sale limit applies to refinancings
- ‘They’re going to have to watch their cash very carefully’
Source: Through the Lens/Moment RF via Getty Images
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Nine law firms were hired by Connecticut and underwriter Bank of America Corp. to vet the state’s $492 million bond sale in June.
But none appear to have caught what could be a costly mistake: The contract effectively promises that Connecticut will stick to a strict $1.9 billion annual limit on a key type of debt sale, even though that cap was loosened by the state legislature.