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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 |
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