The Treasury Department says it will begin running out of money to pay its bills by Oct. 17, if the partial government shutdown isn't over by then. That prospect worries the financial markets. Treasury debt plays a fundamental role in the global economy, and economists agree that a debt default would have dire consequences. But some Republicans insist that a default doesn't have to happen.
The government is just 10 days away from defaulting on its debt. Treasury Secretary Jack Lew has said that by Oct. 17, the department will likely have less money on hand than it needs to pay all its bills.
"The reality is that if we run out of cash to pay our bills, there is no option that permits us to pay all of our bills on time, which means that a failure of Congress to act would for the first time put us in a place where we're defaulting on our obligations as a government," Lew said on NBC's Meet The Press on Sunday.
Yale University received a $250 million gift from 1954 graduate Charles B. Johnson, the largest gift in the school's history. “This is an extraordinary commitment from one of Yale’s most loyal alumni,” Yale President Peter Salovey said. “It builds on Charlie’s long history of generosity to Yale."
Originally published on Mon September 30, 2013 11:56 pm
Not even an hour after the House voted in favor of a bill that would avert a shutdown of the federal government, but also delay a key part of President Obama's Affordable Care Act, the Senate rejected it with a vote of 54-46.
With less than an hour before the government runs out of authority to spend money, the ball is now back in the court of Speaker John Boehner in the House.
Governor Dannel Malloy on Friday defended state borrowing that will help finance the opening of Bass Pro Shops at Steelpointe Harbor in Bridgeport. The state will invest more than $30 million to bring the sporting goods retailer to anchor the long-delayed commercial development.
Connecticut's budget office is working with state agencies to prepare for a possible shutdown of the federal government. In a letter last week to agency heads, Office of Policy and Management Secretary Benjamin Barnes said if Congress fails to reach a budget deal, there could be "significant impact" on staff and programs that rely on federal funding.
Governor Dannel Malloy pointed small businesses in Connecticut who were affected by Superstorm Sandy to a new state website, Connecticut Recovers, to apply for a share of $10.5 million in federal grants. The site is intended to streamline the process of filing for relief.
Connecticut is doing a little bit better getting ready for rainy days, we learned from Kevin Lembo this week, but when there's fair weather, the state legislature made sure we won't be generating energy from wind turbines anytime soon. Read about that and more in today's Wheelhouse Digest... where UConn has us thinking about the legality of digesting hemp brownies.
People who lost money in the Bernard Madoff Ponzi scheme after investing in feeder funds could get a share in more than $2 billion recovered by the government. So far, feeder fund investors have been shut out of compensation.
Originally published on Mon September 30, 2013 9:29 pm
There's a showdown underway in Congress.
The Republican-controlled House has voted to keep the government running only if the Affordable Care Act is defunded, and the Democratic-controlled Senate isn't likely to go along with that plan. If the two sides can't resolve their differences by Oct. 1, the U.S. government will shut down.
We asked you what you wanted to know about the potential government shutdown, and journalists from NPR's Washington Desk tracked down the answers:
Originally published on Thu September 19, 2013 9:43 am
The nation's health spending will bump up next year as the Affordable Care Act expands insurance coverage to more Americans, and then will grow by an average of 6.2 percent a year over the next decade, according to projections by government actuaries.
That estimate is lower than the typical annual increases before the recession hit. Still, the actuaries forecast that in a decade the health care segment of the nation's economy will be larger than it is today, amounting to a fifth of the gross domestic product in 2022.
If you are trying to buy a home, you just got good news: The Federal Reserve said Wednesday it is not going to try to drive up long-term interest rates just yet.
Stock investors are happy for you. They like cheap mortgages too because a robust housing market creates jobs. To celebrate, they bought more shares, sending the Dow Jones industrial average up 147.21 to an all-time high of 15,676.94.
Governor Dannel Malloy announced today that 169 Connecticut schools will share $5 million in grants to upgrade school security infrastructure. The governor promised more grant money is on the way.
The competitive grants were part of the Gun Violence Prevention and Safety Act. The $5 million of state bond money will go to school districts that plan to upgrade or already upgraded their security infrastructure in the wake of the Sandy Hook tragedy.
Customers who had money in The Community's Bank in Bridgeport should receive their insured deposits back this week after the bank failed and was put into receivership. It's the first bank failure in Connecticut in more than a decade.
With U.S. economic growth inching upward, the Federal Reserve’s announcement in May that it might taper off quantitative easing – initiated to boost domestic growth – is sending emerging economies into a tailspin. Global economies are so inter-connected with the U.S. through trade and investment channels that the currencies of Brazil, Indonesia, South Africa and Mexico all fell. But the Indian currency was especially sensitive, falling to its lowest in 20 years.
A Hartford judge will hear arguments this morning in a landmark education lawsuit that challenges the way Connecticut funds its public schools.
The state attorney general’s office wants the judge to dismiss the case, which was brought in 2005 by the Connecticut Coalition for Justice in Education Funding.
CCJEF is a statewide coalition of municipalities, local boards of education, unions, and education advocates who say the way the state finances local public schools denies many students their constitutional right to an equitable and adequate education.
Originally published on Mon September 16, 2013 11:01 am
Larry Summers has removed his name from the running to be the next chairman of the Federal Reserve. The former Treasury secretary informed President Obama of his decision in a phone call Sunday. The withdrawal was first reported by The Wall Street Journal.
Yale’s School of Management wants the nation’s regulators to learn the lessons of the financial crisis, and they’re designing a new program to help them do it. When Wall Street hit the skids in 2008, it was Main Street that largely paid the price. Andrew Metrick, professor of finance at the Yale School of Management, says one reason is that regulators weren’t looking in all the right places in the years before the crash.
On Wednesdays on Where We Live, we try to tackle as much of the news you need to know now as we possibly can. But it's a long, long week, don't ya know. So, the Wheelhouse Digest was created to let you see what we're looking at, talking about and shaking our heads over in the newsroom on those other days.
Let's get to it. It's Friday the 13th, and I'd like to crawl back under my desk and hide.
The executive director of Amistad America Inc., a New Haven-based non-profit, asserts that all money it has received from the state has been used appropriately. Amistad America owns and operates the Freedom Schooner Amistad, and recently lost its non-profit status after falling behind in filing federal tax returns.
There's a lot of searching on Capitol Hill but no discovery yet of a way to avoid a federal government shutdown at the start of next month.
Speaker John Boehner and Majority Leader Eric Cantor are searching for enough House GOP votes for a spending bill that could pass in the Democratic-controlled Senate and keep the government open past Sept. 30.
Tea Party-affiliated lawmakers are searching for a way to repeal the Affordable Care Act with the help of the Democratic-controlled Senate and President Obama.
Economist Tyler Cowen has some advice for what to do about America's income inequality: Get used to it. In his latest book, Average Is Over, Cowen lays out his prediction for where the U.S. economy is heading, like it or not:
"I think we'll see a thinning out of the middle class," he tells NPR's Steve Inskeep. "We'll see a lot of individuals rising up to much greater wealth. And we'll also see more individuals clustering in a kind of lower-middle class existence."
The Connecticut State Colleges and Universities System is facing a significant budget deficit this fiscal year, and ConnSCU officials are hoping the state will step in and pick up most the tab.
ConnSCU governs 12 Connecticut's Community Colleges; Central, Eastern, Western and Southern Connecticut State Universities, and Charter Oak State College. The projected $18 to $20 million budget gap accounts for about two percent of ConnSCU's overall budget.
Originally published on Wed September 11, 2013 5:15 pm
When the global financial system started to collapse five years ago, leaders from the Treasury Department, Congress and the Federal Reserve jumped up and started running.
Like men on a burning wooden bridge, they raced along, making crazy-fast decisions. They seized Fannie Mae and Freddie Mac, bailed out big banks, saved automakers, slashed interest rates and funded a massive infrastructure-building project to stimulate growth.
University of Connecticut President Susan Herbst is defending raises that were recently awarded to two dozen top school administrators. The pay hikes, which range from $10,000 to more than $25,000, have raised eyebrows. They come at a time when the state is struggling to balance its budget.
Herbst said administrators’ salaries need to be competitive in a national labor market. "We have a study of what these different positions--deans, vice presidents--make around the country," she said on WNPR's Where We Live, "and I stay within that range to make sure our salaries are normative. But I will tell you that I will only hire great people."
In August, President Obama signed a bill preventing the doubling of interest rates on federal student loans for those entering college this year. Students borrowing the maximum amount this year will save about $4,600 in extra interest...but it’s a temporary fix.