Gov. M. Jodi Rell warned in a press release Monday that the state may face cash flow problems in a few months. “In addition to regular bills, in the coming months the state must make the next round of Education Cost Sharing payments (the main grant for state education aid) to cities and towns, and we want to be sure there is enough cash on hand to make those grants without overstretching our resources,” Rell said. The next round of ECS payments is due May 1 and will total more than $945 million.
“It is not clear yet whether we will need to do anything,” Rell said.
“It would not be the first time the state has taken such action and it is only prudent to plan for all eventualities. There are a number of options at our disposal, including issuing Bond Anticipation Notes or drawing on a line of credit arranged with banks. If we must act, we will looking for the best option - one that will give us the ‘liquidity’ we need without incurring excessive interest charges or other expenses. I will consult with my budget office, the Treasurer and others as we determine the next steps,” Rell said.
C. Stewart
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