With Maine looking like it will be the first state to shut down heading into the new fiscal year on Saturday morning and perhaps beating Illinois to the punch, moments ago Connecticut, as previewed last night, 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.
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 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.
Connecticut’s General Assembly failed to pass a version of the state budget on Friday, forcing Democratic Gov. Dannel P. Malloy, who wanted the General Assembly to at least pass a proposed three-month mini-budget, to sign an executive order to take control of state spending, according to the Associated Press.
— ctnewsjunkie (@ctnewsjunkie) June 30, 2017
Gian-Carl Casa, president and CEO of Connecticut Community Nonprofit Alliance, says agencies that help people struggling with mental illness to domestic violence are planning to lay-off staff and close programs.
The failure is the latest blemish on Malloy's record. The two-term governor has said he will not seek a third term when is current one is up at the end of 2018.