Free Daily Headlines :

  • COVID-19
  • Vaccine Info
  • Money
  • Politics
  • Education
  • Health
  • Justice
  • More
    • Environment
    • Economic Development
    • Gaming
    • Investigations
    • Social Services
    • TRANSPORTATION
  • Opinion
    • CT Viewpoints
    • CT Artpoints
DONATE
Reflecting Connecticut’s Reality.
    COVID-19
    Vaccine Info
    Money
    Politics
    Education
    Health
    Justice
    More
    Environment
    Economic Development
    Gaming
    Investigations
    Social Services
    TRANSPORTATION
    Opinion
    CT Viewpoints
    CT Artpoints

LET�S GET SOCIAL

Show your love for great stories and out standing journalism

Hartford bailout debate never materialized in 2019

  • Money
  • by Keith M. Phaneuf
  • July 11, 2019
  • View as "Clean Read" "Exit Clean Read"

Hartford skyline

After dominating the final months of the 2018 General Assembly session, the political battle over Connecticut’s bailout of Hartford dissolved this spring with nary a whisper.

Lost amidst other legislative issues and weakened by a concerted effort to control spending in Hartford, the push to effectively revoke most of the $500 million-plus in debt assistance to the city petered out fairly quickly.

Republican legislators, who spearheaded the push to gut Hartford’s aid, made no serious attempt to revive it this spring.

Majority Democrats, many of whom backed the 2018 GOP initiative, moved on to other issues, like raising the minimum wage and establishing paid family and medical leave.

And Gov. Ned Lamont, who wasn’t in office last year but had criticized the bailout deal on the campaign trail, focused on closing a major budget deficit and boosting municipal aid.

Keith M. Phaneuf :: CTMirror.org

Senate Minority Leader Len Fasano, R-North Haven

“We had so many things coming at us from all different angles this year and this one just slipped through the cracks,” Senate Minority Leader Len Fasano, R-North Haven, told the CT Mirror, adding Republicans were focused on opposing the minimum wage hike, paid leave and the push to legalize marijuana sales for recreational use. The first two initiatives were enacted but the pot legislation died.

But House Majority Leader Matt Ritter, D-Hartford, said the city’s track record over the past 12 months, coupled with the success of the state’s fiscal intervention program, is why the bailout debate has subsided.

The state’s Municipal Accountability Review Board or MARB “has demonstrated, and that [debt assistance] deal has demonstrated, that this is all working,” Ritter said. “It has made significant changes to the city’s finances. They do have a trajectory and a path forward.”

Fasano and House Minority Leader Themis Klarides, R-Derby, were surprised and outraged in early 2018 upon learning then-Gov. Dannel P. Malloy had signed a deal for the state to pay off most of the city’s bonded debt.

But GOP leaders weren’t the only ones surprised.

Many lawmakers thought they’d authorized no more than $80 million in emergency aid —$40 million each in 2018 and 2019 — to keep Hartford out of bankruptcy. Instead, Connecticut was on the hook for an estimated $530 million in debt — to be paid off over several decades.

ctmirror.org

House Majority Leader Matt Ritter, D-Hartford

Democratic leaders weren’t outraged at the deal, but conceded that wasn’t what they envisioned when the legislature authorized the bailout in November of 2017.

Republicans, who had a louder voice one year ago because they held 18 of the 36 seats in the Senate and nearly half of those in the House, moved quickly.

They crafted a bill that would effectively reduce non-education grants to Hartford annually by an amount equal to any debt payments made on the city’s behalf that same year.

Dozens of Democrats — including Ritter and others from Hartford — voted for the bill, which passed easily with broad, bipartisan support.

Malloy, who wasn’t seeking re-election and who insisted he’d followed the bailout legislation properly, vetoed it. And bailout critics looked forward to 2019 and a new governor.

There were some indications that Lamont was sympathetic to the cause. He said on the campaign trail that he would have liked to have seen some sacrifice on the part of Hartford’s creditors as part of the debt assistance deal.

“Hartford ended up being a bailout for the bond-holders and the bond insurance guys,” Lamont said in early October.

Lamont went on to win the 2018 election, with fellow Democrats regaining their majority in the Senate and expanding their lead in the House. Once the 2019 session got underway in January, the bailout deal didn’t appear to be on anyone’s agenda.

Hartford officials helped their own cause, Ritter said, cutting spending and stabilizing the budget.

“I can’t remember the last time I read an article about the city of Hartford’s finances,” he said. “The city has found a level of stability.”

Though final, audited numbers won’t be available until this fall, Mayor Luke Bronin said they will show the city closed the 2018-19 fiscal year on June 30 with a surplus — some of which will be invested in capital projects and some dedicated toward rebuilding Hartford’s emergency budget reserve.

Two major, Wall Street credit rating agencies, Moody’s and S&P Global, both upgraded the city’s bond rating within the past year.

HBJ

Hartford Mayor Luke Bronin

“We have worked hard to maintain and deserve the trust of all of our partners, from taxpayers to businesses to residents to legislators,” Bronin said. “And I think what we’ve shown is we were honest about the challenges we faced, we were serious about tackling them in a real long-term way and we stuck to our plan.”

Bronin, who inherited debt-riddled city finances when he took office in 2016, added Hartford has incurred no bonded debt during his tenure with one exception: the issue of revenue bonds three years ago by the city’s stadium authority to complete work on Dunkin Park, home to the Hartford Yard Goats baseball team.

Lamont’s budget director, Melissa McCaw, was Hartford’s finance director under Bronin until this past January.

McCaw said the state program launched in 2017 to target and assist distressed municipalities has been enhanced significantly over the past year.

And while some municipalities remain in tough straits, these steps “have been and will be beneficial to promoting economic growth, preventing fiscal crisis and aiding the recovery of our great cities and towns,” McCaw said.

She added that “this also requires that municipalities be engaged and willing to make the necessary changes to correct their course. We have seen it in Hartford.”

One key enhancement developed by the Lamont administration and this year’s legislature better positions Connecticut to target communities at risk even sooner than before.

Another entity, the Municipal Finance Advisory Committee, has been empowered to identify early indicators of potential distress — multiple years of budget deficits or exhausted fiscal reserves — and to designate those communities for further oversight.

“This is a critical milestone as financial distress often has warning signs that if heeded to go along with strategic corrective actions can mitigate severe financial distress,” McCaw said.

Office of Policy and Management Secretary Melissa McCaw

House Republicans did raise the bailout issue once this past spring. As the chamber debated a technical resolution related to state borrowing, GOP leaders proposed an amendment that offered a statement of protest — but little more.

The amendment specifically said it never was the legislature’s intent to pledge more than $500 million in debt assistance to the city. The Democrat-controlled House rejected the amendment.

Deputy House Minority Leader Vincent J. Candelora, R-North Branford, said it was clear the legislature wasn’t going to re-litigate the matter this year.

“I don’t think the Democrats ever intended to undo that deal,” he said, adding lawmakers should revisit the matter before another municipality is at risk of bankruptcy. “I think there should be a greater conversation about this again, since it never was the legislature’s intention to give out that much money.”

Sign up for CT Mirror's free daily news summary.

Free to Read. Not Free to Produce.

The Connecticut Mirror is a nonprofit newsroom. 90% of our revenue comes from people like you. If you value our reporting please consider making a donation. You'll enjoy reading CT Mirror even more knowing you helped make it happen.

YES, I'LL DONATE TODAY

ABOUT THE AUTHOR

Keith M. Phaneuf A winner of numerous journalism awards, Keith Phaneuf has been CT Mirror’s state finances reporter since it launched in 2010. The former State Capitol bureau chief for The Journal Inquirer of Manchester, Keith has spent most of 31 years as a reporter specializing in state government finances, analyzing such topics as income tax equity, waste in government and the complex funding systems behind Connecticut’s transportation and social services networks. A former contributing writer to The New York Times, Keith is a graduate of and a former journalism instructor at the University of Connecticut.

SEE WHAT READERS SAID

RELATED STORIES
With billions in federal relief on the way to CT, legislators assert their role in deciding how to spend it
by Keith M. Phaneuf and Mark Pazniokas

With an unusual bill, state legislators are reminding Gov. Ned Lamont they have significant role in disbursing federal coronavirus relief.

CT hasn’t started collecting new payroll tax from state workers
by Keith M. Phaneuf

Connecticut established a new payroll tax surcharge on Jan. 1 but still isn't deducting it from state workers' paychecks.

Lamont’s budget offers another round of tax amnesty
by Keith M. Phaneuf

Gov. Ned Lamont’s proposal waives penalties and caps interest at 3% over each of the next two fiscal years.

Senate sends data center incentives and town aid pledge bills to Lamont’s desk
by Keith M. Phaneuf

Senate endorsed an omnibus fiscal bill that lays the groundwork for a major boost in PILOT aid to many municipalities.

House approves big municipal aid pledge, tax incentive bills
by Keith M. Phaneuf and Mark Pazniokas

The House approved bills Wednesday pledging $100 million-plus in new municipal aid and offering tax incentives to attract data centers.

Support Our Work

Show your love for great stories and outstanding journalism.

$
Select One
  • Monthly
  • Yearly
  • Once
Artpoint painter
CT ViewpointsCT Artpoints
Opinion The public health bill no one is talking about, but should be
by Brian Festa

On February 16,  the legislature's Public Health Committee conducted a public hearing on two bills, S.B. 568 and H.B. 6423, both of which would eliminate the religious exemption to mandatory vaccinations for Connecticut schoolchildren.  The hearing was capped at 24 hours, depriving nearly 1,500 members of the public who had registered for the hearing their opportunity to be heard.  The vast majority of those who did testify, and who submitted written testimony, opposed the bill.  The committee is expected to vote on the bill as early as  today. 

Opinion Students need more resources, fewer officers
by Tenille Bonilla

"School resource officer" is just a nice way to say cop. But what students really need is more resource and less officer.

Opinion The Board of Regents’ changes must not shortchange its students or faculty
by Carrie Andreoletti, PhD

As a university professor and a lifespan developmental psychologist, I tend to approach my work from a developmental perspective. This means I aim to foster a lifelong love of learning and to help others find a sense of meaning and purpose, as well as confidence in their ability to reach their goals. My approach to higher education is shaped by my desire to provide the best possible education for my students. This is why the recent Board of Regents’ proposed changes at the four state universities have me worried.

Opinion How to close schooling opportunity gaps created by the pandemic
by Carol Gale

We ask school district leaders to trust your public servants whose daily work life involves assessing student needs and planning or modifying instruction to meet those needs. Listen to their voices, as we have, and allocate precious resources on interventions that will offer increased opportunities for Hartford students to succeed.

Artwork Grand guidance
by Anne:Gogh

In a world of systemic oppression aimed towards those of darker skintones – representation matters. We are more than our equity elusive environments, more than numbers in a prison and much more than victims of societal dispositions. This piece depicts a melanated young man draped in a cape ascending high above multiple forms of oppression. […]

Artwork Shea
by Anthony Valentine

Shea is a story about race and social inequalities that plague America. It is a narrative that prompts the question, “Do you know what it’s like to wake up in new skin?”

Artwork The Declaration of Human Rights
by Andres Chaparro

Through my artwork I strive to create an example of ideas that reflect my desire to raise social consciousness, and cultural awareness. Jazz music is the catalyst to all my work, and plays a major influence in each piece of work.”

Artwork ‘A thing of beauty. Destroy it forever’
by Richard DiCarlo | Derby

During times like these it’s often fun to revisit something familiar and approach things with a different slant. I have been taking some Pop culture and Art masterpieces and applying the vintage 1960’s and 70’s classic figures (Fisher Price, little people) to the make an amusing pieces. Here is my homage to Fisher -Price, Yellow […]

Twitter Feed
A Twitter List by CTMirror

Engage

  • Reflections Tickets & Sponsorships
  • Events
  • Donate
  • Newsletter Sign-Up
  • Submit to Viewpoints
  • Submit to ArtPoints
  • Economic Indicator Dashboard
  • Speaking Engagements
  • Commenting Guidelines
  • Legal Notices
  • Contact Us

About

  • About CT Mirror
  • Announcements
  • Board
  • Staff
  • Sponsors and Funders
  • Donors
  • Friends of CT Mirror
  • History
  • Financial
  • Policies
  • Strategic Plan

Opportunity

  • Advertising and Sponsorship
  • Speaking Engagements
  • Use of Photography
  • Work for Us

Go Deeper

  • Steady Habits Podcast
  • Economic Indicator Dashboard
  • Five Things

The Connecticut News Project, Inc. 1049 Asylum Avenue, Hartford, CT 06105. Phone: 860-218-6380

© Copyright 2021, The Connecticut News Project. All Rights Reserved. Website by Web Publisher PRO