“Greatest Fiscal Crisis In Our City’s History”: Hartford Warns It Will Be Broke In 60 Days
Another US city is on the verge of bankruptcy, the result of giving too generous pensions and benefits to city employees. They pushed the can down the road for too long, only getting serious about controlling spending recently, but their efforts were too little too late. Of course, they hope for State aid, but the State of Connecticut is trying to close a huge deficit and can offer little, if any, help. The day of reckoning is fast approaching. – Shorty Dawkins
This article comes from ZeroHedge.com
Well, that escalated quickly.
Just two months after Standard & Poor’s downgraded its general obligation debt to junk status, warning that the historic Connecticut capital could soon follow other once-proud cities like Detroit into bankruptcy, Hartford city officials confirmed as much when they warned on Thursday that the city could be forced into insolvency within two months if the state doesn’t provide emergency financial relief, the WSJ reports.
“City officials warned Gov. Dannel Malloy, a Democrat, and state lawmakers that Hartford, which has a deficit approaching $50 million, wouldn’t be able to pay all of its bills within 60 days. Hartford officials said it would file for bankruptcy at that point unless the state legislature passes a budget that gives the city more funding or otherwise provides it with more cash.
‘We face the greatest fiscal crisis in our city’s history,’ officials said in a letter signed by Mayor Luke Bronin, Treasurer Adam Cloud and Thomas Clarke II, president of the court of common council.”
Hartford has been plagued by political corruption and a disintegrating corporate tax base – most recently exemplified by health-insurance giant Aetna’s decision to move its corporate headquarters away from the city, which was once proudly called “the Insurance Capital of the World.”