The revolutionary income-tax budget that Connecticut adopted last week left municipal analysts and other market players in a quandary over the consequences for the state's bonds.

On the one hand, the state no longer has the stigma of operating without a budget for the current fiscal year, or of relying on a sales tax-based revenue system that bloated budget deficits when the economy went bad. That change has positive implications for the bonds' credit quality, analysts say.

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