Malloy approves temporary $550 million credit line

Associated Press

Updated: Dec 5, 2012 9:09 AM

HARTFORD, Conn. (AP) — Gov. Dannel P. Malloy has authorized $550 million in temporary lines of credit at the request of the state treasurer in case the state needs cash to pay its bills.

Treasurer Denise Nappier says state government is facing reduced cash levels and obtaining credit lines is a precautionary measure. Malloy's authorization doesn't mean money from the credit lines will be used.

The Democratic governor's approval comes as state Comptroller Kevin Lembo is projecting a $415 million deficit in this year's $20 billion state budget. The shortfall estimate is $50 million higher than the one by the Malloy administration.

Republican lawmakers say they're against borrowing money to pay operating expenses. They say they've been questioning the adequacy of the state's cash reserves for months.

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