New Haven could run out of money if budget isn't passed soon - WFSB 3 Connecticut

New Haven could run out of money if budget isn't passed soon

Posted: Updated:
New Haven could soon run out of money because of a lack of budget (WFSB) New Haven could soon run out of money because of a lack of budget (WFSB)
NEW HAVEN, CT (WFSB) -

New Haven's mayor is keeping a close eye on the lack of a state budget.

That's because without one, the Elm City could run out of cash in just a few months.

"We're really concerned that the city of New Haven will run out of cash in November, if not before,” New Haven Mayor Toni Harp said.

She said 41 percent of New Haven’s $538 million budget comes from the state, and without a state budget, she said they’d be out a little more than $200 million.

"That creates a problem for us. We've still got to provide police, we've still got to provide fire, we got to keep our libraries open, we've still got to collect the trash,” Harp said.

The possibility of running out of money in November is something residents can't wrap their heads around.

"It’s kind of messed up, we should be getting everything together, republicans, democrats and getting this budget together so we can keep going,” said George Creamer, of New Haven.

When it comes to cash flow, New Haven's Public Schools are in the same boat.

The chief operating officer says there's been talk of releasing education cost-sharing funds to large districts, like New Haven.

He says that would certainly help with the board of education making payroll. But without it, there'd be no clear sign of revenue to support school services.

"We need to continue to invest in the programs that have produced steady gains in test scores, graduation rates, and college, but we need a positive budget solution in order to avoid losing our momentum and damaging critical programs that provide educational services to our students,” the district said.

Gov. Dannel Malloy has already said he will veto the Republican budget that passed the general assembly over the weekend, saying it would reduce money for the state's most struggling school districts. 

"I would suggest that they sit down, build consensus. That means some win, some lose and that we get a budget that they can all be proud of, but can move us over the next two years,” Harp said.

She also said she’s already discussed this with her finance team, saying they'll be meeting with the board of alders to look at possibly at some short-term borrowing to keep the city running if there is no budget.

Copyright 2017 WFSB (Meredith Corporation). All rights reserved.