Governor Jodi Rell says some bond funding already promised for capital projects in the state may have to be pulled because of the state's slowing revenue.
The state's ability to borrow and issue bonds is limited to a certain percentage of the overall state budget. Governor Rell says the state of economy and the consequent fall in revenue means changes will have to be made.
"Because of the loss in revenue in the last year - we are down over a billion dollars in revenue – because of that our authorizations have put us closer to the cap on what we can actually borrow and bond because we’re limited by statute."
Rell says she has prepared a list of projects already authorized for bond funds, which could be put on hold. She brought up the issue with legislative leaders during budget negotiations. Rell and state lawmakers resumed closed-door budget talks at the executive residence on Monday. Rell and state lawmakers have been at odds for months over how to cover a two-year deficit estimated at over eight and a half billion dollars. Connecticut has been without a budget since July 1 – Pennsylvania is the only other state in the nation still operating without a budget.