Frantz: Administration poised to borrow the most money in state history

State Senator Scott Frantz (R-Greenwich)

State Senator Scott Frantz (R-Greenwich)

State Senator Scott Frantz (R-Greenwich) released the following statement today re: The state Bond Commission approves $93.8 million inching closer to the administration’s $2.5 billion bond cap for the year.

“Today’s borrowing brings the total state bonding to within $8.2 million of Gov. Dannel Malloy’s self-imposed, $2.5 billion bond cap for the year. If the state borrows $2.5 billion, it will be the most money the state has ever borrowed in a single year.

“In February Gov. Malloy told credit rating agencies he was increasing the amount of annual borrowing this calendar year to $2.5 billion. That amount is far more than last year’s “soft” $1.8 billion bonding cap which the administration exceeded last year by approximately $170 million.

“There are still two Bond Commission meetings scheduled before the end of the year. The rate at which this administration is spending is way too fast. I understand interest rates are low, but the state still has to pay back the principal on these bonds.

“For the last eight years, the amount of borrowing the state does continues to increase and at some point that money will have to be paid back. That means a larger portion of the general operating budget will have to go toward debt service and less money will be available to fund services.

“For this administration, it appears to be a credit card addiction. They have a hard time cut back on borrowing.”

Senator Frantz is the Ranking Republican Member of the Bonding Commission.

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