Posted on 07/28/2018 5:46:31 PM PDT by george76
NEW HAVEN — More disappointing news for the city.
Fitch has downgraded the city’s 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 Haven’s financial flexibility has worsened from already weak levels and Fitch’s 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 city’s and education department’s 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 ...
There are two more unicorns living in New Haven CT than there are Republicans living there.
Please tell me New Haven isn’t run by DemoRATS. NOT!
bttt
Why can’t the Yale Economics Dept. fix this with their magic wands?
Why can’t the very unstable geniuses of Yale fix New Haven?
They are already on site.
Think Globally, act locally....
Someone check out who runs New Haven and get back to us with a list of those crooks, commies, & crazies - all Democrats I believe.
“Connecticut is a mess but it’s the urban areas that are ruining it. New Haven, Bridgewater, Hartford, etc., are awful areas - all run by Democrats.”
That’s true of EVERY STATE in the Union! Even states that are currently RED, have Blue cities. It’s just that in those states, there is a large enough rural population to more than offset the “Osorio Cortez Gibbsmedats!” Make no mistake about it, the large Urban RAT populations will eventually be the “majority” in this country. The question then becomes, what will the people who pay for all of it do? Nevada is in the throes of going Blue. When my wife left Las Vegas in 1966, there were less than 80,000 people there. Now there are 2.5 million in a state that’s got a population of just under 4 million. Go do the math. If Trump can’t prevail, we’re done!
New Haven, Bridgeport and Hartford are what causes Connecticut to be blue. When you get into the small towns (Ellington, Somers) and small cities (New Britain), you will see Republicans running the towns and state senators and representatives being Republicans. Not as conservative as Southern Republicans, but good fiscally conservative R.
Very smart indeed.
You are borrowing money to pay the interest on your debt and you are giving your employees raises and better medical benefits.
Only democrat politicians would think this is a good idea.
What they should be doing is laying off employees, freeze salaries and benefits, sell unused or unneeded real estate, privatize services and cut retirees benefits.
make them live with the rot...
left that godawful state in 1990...its a dumpster fire, as are most states and cities run by the liberal left.
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.”
So cut the budget, it's called reality. Thanks george76.
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