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2017-09-11 Home Front: Politix
Hartford (CT) Can Meet Financial Obligations For Only 60 Days; Bankruptcy Likely Without State Aid
[Hartford Courant] Mayor Luke Bronin fired a warning shot at lawmakers and Gov. Dannel P. Malloy Thursday, saying Hartford would seek permission to file for bankruptcy if the city didn’t get the state aid it needs by early November.

In a sharply worded letter to House and Senate leaders and to Malloy, Bronin cautioned: “If the state fails to enact a budget and continues to operate under the governor’s current executive order, the city of Hartford will be unable to meet its financial obligations in approximately 60 days.”

Malloy unveiled new budget proposals Thursday that would restore funding for municipalities and reject major education cuts planned for Oct. 1. Democrats and Republicans met in an attempt to reach common ground.

But Bronin warned that the “extraordinary measures” other towns are considering in response to the state’s ongoing budget gridlock — layoffs, cuts to services and drawing from rainy day funds — are actions Hartford has taken already.

In 2016, the mayor laid off 40 workers and cut millions from city departments. He also used most of Hartford’s rainy-day fund to help offset deficits. Still, Hartford had to borrow millions in June to help pay its bills.

House Majority Leader Matthew Ritter said he was optimistic that lawmakers would reach an agreement soon.

In July, Hartford hired an international law firm to explore the prospect of seeking Chapter 9 protection. Bronin said the firm, Greenberg Traurig, had “initial conversations” with a large bond insurer and that talks with bond holders are planned for the coming weeks.

Last month, Moody’s Investors Service noted that the financially troubled city was rapidly approaching debt repayment deadlines. Hartford owes $3.8 million in September and $26.9 million in October. The ratings agency said the city’s “path to fiscal sustainability will likely require debt restructuring along with some combination of labor concessions, other expenditure cuts and new revenues.”

Hartford wouldn't be the first city in Connecticut to file for bankruptcy. Bridgeport sought Chapter 9 protection in 1991, but a federal judge dismissed the petition, saying the city was capable of paying its bills.

Bronin must get approval from Malloy to file for bankruptcy.
Just a clue on why they're in the mess they're in...
Posted by Pappy 2017-09-11 00:00|| || Front Page|| [11133 views ]  Top

#1 Slowly at first, then all at once.
Posted by SteveS 2017-09-11 02:19||   2017-09-11 02:19|| Front Page Top

#2 Start the printing presses?
Posted by g(r)omgoru 2017-09-11 02:21||   2017-09-11 02:21|| Front Page Top

#3 Is Hartford one of those liberal piggy banks for Democrats?
Posted by JohnQC 2017-09-11 06:24||   2017-09-11 06:24|| Front Page Top

#4 State aid is gonna come with strings attached if the governor has any brains at all.
Posted by Abu Uluque 2017-09-11 10:00||   2017-09-11 10:00|| Front Page Top

#5 As with all these blue and bankrupt cities and states....

Let them die.
Posted by DarthVader 2017-09-11 10:08||   2017-09-11 10:08|| Front Page Top

#6 if the governor has any brains at all.

Gov. Dannel P. Malloy (D). 'Nuff said
Posted by Frank G 2017-09-11 10:18||   2017-09-11 10:18|| Front Page Top

#7 Bronin is a Malloy protégé.
Posted by Pappy 2017-09-11 10:52||   2017-09-11 10:52|| Front Page Top

#8 Both the state and its capitol are broke.

Ironically CT had no state income tax until 25 years ago. They are very proficient at collecting other people's money but not very prudent in spending it.
Posted by regular joe 2017-09-11 13:14||   2017-09-11 13:14|| Front Page Top

#9 >CT had no state income tax until 25 years ago

That's probably why they're broke, you need debt to replace the damage done by immoral income/sales taxes
Posted by Bright Pebbles 2017-09-11 16:53||   2017-09-11 16:53|| Front Page Top

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