Federal impasse forces state action

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A temporary solution to the federal debt ceiling and budget impasse appears to be nearing an agreement in Congress, but Gov. Dannel Malloy said today that his administration cannot stand by and wait for elected officials in Washington, D.C., take action as the safety of Connecticut residents is jeopardized.
Following a breakfast meeting today hosted by the Business Council of Fairfield Council, Malloy told reporters that the fiscal crisis has forced the state to take action.
“We’re developing contingency plans as we speak. Our disabled vets could go without care, and we can’t allow our children to go hungry. This life and death stuff,” said Malloy, commenting that Head Start also could be affected. “We’ll operate on the assumption that recover the money we pay out.”
Noting that the Small Business Administration’s programs are being affected by the fiscal impasse, he said businesses in Connecticut are being impacted, as well as global economics.
“The level of dysfunction in Washington is most disturbing and rattling markets across the world,” Malloy said.
Malloy’s comments came while Senate Democrats and Republicans were working on an agreement to reopen the government and extend its borrowing authority.
The agreement calls for the government to be funded through Jan. 15 and the debt ceiling to be increased until Feb. 7.
It coincides with a Senate for a panel of Senate and House members to hammer out an accord by Dec. 13 on a 10-year plan for taxes and spending.
Leaders of the House of Representatives are reviewing the proposal.
The New York Times News Service contributed to this story.

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