Posted on 07/28/2018 5:46:31 PM PDT by george76
NEW HAVEN More disappointing news for the city.
Fitch has downgraded the citys credit rating on the heels of a similar downgrade Wednesday from S&P Global Retings as New Haven gets ready to sell bonds around Aug. 2.
Fitch downgraded the rating from A- to BBB, with a negative outlook from stable. S&P gave the city a BBB+ rating with a negative outlook.
The new bonds are $58,030,000 to finance city and school projects and $160 million in refunding bonds, which will be used for debt service savings and to cover an estimated $15 million fiscal year 2018 deficit.
Fitch said New Havens financial flexibility has worsened from already weak levels and Fitchs expectations over the past year resulting in a two-notch downgrade.
It said in addition to closing fiscal 2017 with a deficit, one is expected in fiscal 2018 resulting in an increase in the deficit despite a practice of using one-time revenues from debt restructuring to subsidize operations in both fiscal years.
It then listed the problems the city will have to deal with in fiscal 2019, which will be a month old on July 31.
These include a budget imbalance in the education department, the scope of which is not yet fully known; the pressure of unsettled public safety employee contracts; an increasing debt service schedule in 2020; changing state assistance given the citys and education departments heavy reliance on state aid.
The rating agency said it expects the increases in salaries, medical benefits and pensions will exceed revenues that depend on property taxes, given the strained state funding environment.
(Excerpt) Read more at newstimes.com ...
Not a problem.
Simply sue the rating agency.
The suburban/rural areas of the state are actually very nice. However, the taxes are enormous in order to fund all the welfare blight in the cities.
Thanks for posting. Interesting.
They are borrowing money to pay for past debt and the service costs of that debt. Any business that did that would be considered functionality bankrupt and pretty soon legally so.
A government can borrow money to pay for a capital item that will have a life span longer than the debt, like a road or wastewater plant. That’s actually fiscally prudent. Borrowing money to pay for operations is lunacy.
Malloy will fix it up. He’ll just raise taxes more.
Sanctuary City?
Solution: tax Yale
He’s not running for re-election. So a chance to get a Republican governor (almost happened last time).
A tax & spend death spiral city in a tax and spend death spiral state. And this downgrade comes on the heels of Mayor Harp raising already punishing local property taxes another 11%. There is hardly any middle class left in New Haven. What you have are few restaurants & bars, Yale University, and ghetto squalor. The historic New Haven green is off limits to anyone but drug addicts and drunks.
New Haven. Another democrat led city run into the ground.
Fingers crossed. CT is really a beautiful state.
I really like the idea of suing the rating agencies.
As an alternative, how about electing some Republicans.
These include a budget imbalance in the education department
Sanctuary policies are cost drivers despite what Nancy Pelosey might say. Educating all the disparate children of illegals and meeting mandates is nearly insurmountable. Section 8 public housing is not taxed, EBT and welfare benefits are expensive, these things are bottomless holes/ Bankruptcy is next.
Won’t be the first time New Haven has suffered and economic downturn.
Thomas Jefferson’s trade embargo with Europe decimated the city.
Connecticut pension system worst in the nation, according to new study
Is this the state that is unhappy with having too many white folks and wants to import more colorful people?
Have Yale send out emails asking for cash!
This state was wrecked by the mafia.
Born and raised in Waterbury 1967 left in 1988 and never turned back.
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