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Bankruptcy Hartford’s Best Option?

September 27, 2017 By Staff
Bankruptcy Hartford’s Best Option?

In 2016, Greater Hartford's GDP remained flat - an economic reality thats unlikely to change anytime soon.

While some are actively hoping for a Hartford bankruptcy, WFSB “I-Team”, a local news source, has started to compare the capital city’s plight to that of Detroit:

The I-Team recently traveled to Detroit, MI to speak with the men who led the largest municipal bankruptcy ever and they had a simple message for Hartford: Get on with it.

Meanwhile, Governor Dannel Malloy (D-CT) has met with Connecticut’s Republican leaders and promised to veto the bipartisan budget:

The republican budget plan that narrowly passed the legislature a week and a half ago will be formally vetoed by Governor Dannel Malloy Wednesday.

Hartford’s Mayor Luke Bronin (D-Hartford) has also demanded “at least $40 million more” from state leaders to prevent bankruptcy “on top of the $260 million” Hartford already receives in state assistance:

The mayor cautioned last week that Hartford would seek Chapter 9 protection if it didn’t receive its needed state aid by November. Bronin has asked for at least $40 million more this year — on top of the $260 million it was expected to receive.

Under the GOP budget, the city would still face bankruptcy, an idea that has become a more “palatable option” over time.

In 2016, Greater Hartford’s GDP remained flat – an economic reality thats unlikely to change anytime soon. Now S&P Global has downgraded Hartford bond ratings again, adding pressure to the city:

S&P Global Ratings credit analyst Victor Medeiros said the agency has lowered the city’s GO bonds and the Hartford Stadium Authority’s lease revenue bonds four notches, to ‘CC’ from ‘B-‘. The city has been on S&P’s CreditWatch status with negative implications since in May.

With Hartford sinking deeper and faster, bankruptcy may in fact be “Hartford’s best path” toward “fiscal responsibility” and eventually solving the cities fiscal nightmare.