Connecticut governor to oversee spending after budget fails to pass

Connecticut Governor Dannel Malloy speaks at the Democratic National Convention in Philadelphia, Pennsylvania

NEW YORK (Reuters) – Connecticut Governor Dannel Malloy took control of the state’s spending on Friday after lawmakers failed to pass a budget before a July 1 deadline amid discord over how to close a $5.1 billion shortfall over the next two years.

Connecticut, which has one of the lowest credit ratings of all U.S. states despite being one of the wealthiest by personal income, will continue operations under an emergency executive order signed in Hartford by Malloy, a Democrat.

(Reporting by Hilary Russ; Editing by Daniel Bases and Leslie Adler)