Moody’s Cuts CT’s Outlook to Negative

Posted on June 29, 2011. Filed under: Uncategorized |

Well, I guess we could’ve seen this coming: Moody’s has downgraded its outlook on Connecticut from stable to negative, citing factors including but not limited to “depleted reserves with slim prospects for near-term replenishment, as well as high fixed costs and a weak pension-funded ratio.”

This news comes after the failed union deal, which has the legislature and Gov. Malloy scrambling at the 11th hour to land on a budget before the next fiscal year begins on July 1.

Malloy’s Plan B (?) includes layoffs of 5,466 state workers, cutting 1,000 now-vacant positions, closing the minimum-security Bergin Correctional Institution, and cutting roughly $54 million in municipal aid in each of the next two years.

The legislature goes into special session tomorrow; Malloy has asked the legislators for the authority to make all spending cuts necessary to balance the budget.

What do you think – should Malloy be able to wield all of the power to come up with a balanced budget after an unquestionably tumultuous budget session?

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