new york connecticut governor dannel malloy thursday veto 40.7 billion biennial budget pass lawmakers early month say bill would undermine state fiscal stability education system economic development malloy second-term democrat run reelection say would approve republican-supported budget without budget nearly three months overdue state could implement severe cut oct. emergency spend plan put place malloy republican lawmakers control legislature support budget handful democrats say may try override governor veto expect state continue wrangle close 2-year 3.5 billion budget gap connecticut cities fire reduce state aid credit rat agency global rat thursday put nine cities school district alert possible downgrade warn reflect connecticut ongoing budget impasse brinkmanship could reduce significant amount municipal aid payments local governments say analyst victor medeiros credit quality municipalities could deteriorate due weak reserve liquidity concern cities include large bridgeport new likely dip reserve offset losses state aid drain reserve would make financial position precarious medeiros say capital city hartford list downgrade four time last weeks wednesday fell multiple notch deep junk territory face potential bankruptcy republican plan hartford would lose 6.8 million dollars state support time financial future peril almost certainly force bankruptcy malloy say veto message malloy also take issue proposals cut state public pension benefit could lead expensive court challenge public employee unions education fund plan say inequitable state senate republican president pro tempore len fasano say statement veto put connecticut chaos veto mean cut malloy draconian executive order remain effect create destruction low middle income families unless lawmakers vote override fasano say connecticut governor veto budget spend cut loom