- May 18, 2017
- Posted by: Dean Myerow
- Category: news
Bankruptcy Should Be A Last Resort For Struggling Hartford, Conn.
Last Tuesday, the Mayor of Hartford, Conn., Luke Bronin, announced that he has had initial conversations with attorneys who specialize in Chapter 9, municipal bankruptcy. The move was a surprise to the municipal bond market as well as other members of the Hartford city board who were unaware of the mayor’s intentions, and many called the move premature.
For quite some time, it has been publicly known that Hartford is facing financial troubles. In October 2016, Moody’s downgraded Hartford’s general obligation debt to Ba2 in citing the city’s inability to run a balanced budget, tax increase constraints as well as limited likelihood that the state of Connecticut will step in to assist them, given the state’s in fiscal straits. In fiscal year 2017, they are facing a $14 million deficit and expect to face an even greater $65 million deficit in fiscal year 2018. With all this news, and in an effort to be transparent, as recently as April of this year the mayor has said that bankruptcy was not off the table.