Funds Get The Green Light For Commuter Rail Line

The state bond commission has authorized borrowing to fund the New Haven to Springfield rail line as well as a slew of economic development projects. As WNPR’s Harriet Jones reports, the approval came despite a protest vote by Republicans concerned over state spending levels.

The state will issue bonds to raise $260 million to help pay for instating high speed rail service through New Haven and Hartford and on into Massachusetts. The state funding was necessary in order to secure matching federal grants for the line. In addition, commissioners approved $45 million in bonding for economic development, including improvements to the navy subase in Groton, aid to small towns and a loan fund for small businesses.

But two republicans voted no on Tuesday’s bonding saying they were concerned that instead of going towards capital projects, the bond funds might be diverted to pay for the state’s day to day operations, because of the fiscal crisis. Representative Vincent Candelora says he’s received a memo from Treasurer Denise Nappier saying without the bonding the state’s cash on hand would fall to $600 million in December--about one week’s operating budget.

“When I have a memo in front of me that says we’ve got to bond or else we’re going to run out of money to pay vendors, it seems to suggest that there is not enough operating cash in our coffers. If we are approving bond funds, and sort of enabling us to be able to raid those funds for operating, I don’t want to be complicit in that sort of scheme.”

Since issuing the memo, Treasurer Nappier has denied the state has a cash flow problem, saying its common for bond funds to cover operational costs until tax revenue becomes available to pay the money back.

For WNPR, I'm Harriet Jones.