Hedge-Fund State Stung as Stock-Price Swings Leave Budget Gap
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Connecticut faces $118 million deficit four months into year
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Bond yields most in almost three years against bechmark debt
Connecticut passed a budget in June that boosted funding for transportation projects, made required pension contributions and scaled back a tax increase on businesses. It appeared balanced, removing the risk of a downgrade from Fitch Ratings.
The good news didn’t last long.
Four months into the fiscal year, Connecticut is facing a $118 million deficit, thanks in part to a stock-market slide that erased more than $3 trillion from share prices before it ended in late September. With just $406 million in its rainy-day fund, about one-third of the pre-recession peak, Democratic Governor Dannel Malloy and lawmakers are working this week to figure out how to shore up the finances of a state that’s home to more hedge-fund money than any state but New York…
Hedge-Fund State Stung as Stock-Price Swings Leave Budget Gap
