CTNEWSJUNKIE report: https://www.ctnewsjunkie.com/archives/entry/20180725_10m_approved_to_study_tolls_on_connecticut_highways/
DOES CT NEED A FRESH LOOK? https://ctmirror.org/2018/04/03/attacking-state-pensions-stemerman-tries-break-gop-pack/
Regarding shopping malls and new owner: https://www.reuters.com/article/us-generalgrowth-bankruptcy/general-growth-files-historic-real-estate-bankruptcy-idUSLG52607220090416
THE SUN ALSO SETS DEPARTMENT
By Mark Steyn, NATIONAL REVIEW online
March 24, 2012 4:00 A.M.
"...There’s a famous exchange in Hemingway’s The Sun Also Rises. Someone asks Mike Campbell, 'How did you go bankrupt? Two ways, he replies. 'Gradually, then suddenly.'”
Speaking of Hemingway's quote: https://www.nationalreview.com/2019/01/california-coastal-elites-poor-immigrants-fleeing-middle-class/
HOLD ON TO YOUR POCKET BOOK DEPARTMENT: http://www.ct.gov/dob/cwp/view.asp?a=2235&q=587310
SOCIAL SECURITY NOW RUNNING A DEFICIT (JUNE 2018) - 2034 TO RUN OUT OF $$
So what is a CT "distressed" municipality? "...Kolie Sun, DECD senior research analyst, said nine factors are used for the distressed municipalities list: per capita income, percent change in per capita income, poverty rate, percent of population change, unemployment rate, percent of employment change, age of housing stock, percent of residents 25 and older who are high school graduates and equalized grand list per capita."CHARTER REVISION DEBATE IN GROTON: This will be fun to watch Election night!
"...Almost two-thirds of the state’s $18 billion General Fund involves costs that largely are fixed by contract or federal rules, such as employee wages and benefits — including pensions and retirement health care — the Medicaid program and payments on bonded debt.
"And of the little more than $6 billion that’s left, about $3 billion goes to cities and towns as grants.
"So how do you close annual deficits of $2.3 billion and $2.8 billion with spending cuts — without gutting municipal aid, something legislators from neither party nor Gov. Dannel P. Malloy have done since he took office in 2011?
"Further complicating matters, a dozen of the state’s poorest communities receive about half the total of the largest grant program, the $2 billion Education Cost Sharing program, which helps fund local school districts.
"So how do legislators avoid major state tax hikes without cutting local aid — and not just grants to the wealthy towns?
"And if legislators do cut aid to most communities, will their legislators still want to provide something extra for Hartford?
“'From Day One I have felt and still feel if we are not helping towns in general, then it will be very, very difficult to ask for the support we need,' Fonfara said..."
(One part of a longer article in CT MIRROR 5-15-17)
Illinois - you don't want to know.
Michigan: "Hybrid pension plan" development - other States and cities and towns watching...and remember - don't drink the water in Flint.
Detroit Looks to Health Law to Ease Costs
By MONICA DAVEY and ABBY GOODNOUGH
As Detroit enters the federal bankruptcy process, the city is proposing a controversial plan for paring some of the $5.7 billion it owes in retiree health costs: pushing many of those too young to qualify for Medicare out of city-run coverage and into the new insurance markets that will soon be operating under the Obama health care law...
July 28, 2013
Pennsylvania and how it relates to Illinois;
PUERTO RICO 2019
"Promesa" - https://www.nytimes.com/2019/07/14/business/puerto-rico-bankruptcy-promesa.html
Paragraph noting how this might affect CT:
"...That has turned Puerto Rico into something of a test case. Although cities and municipalities — most notably Detroit in 2013 — have declared bankruptcy, states are not eligible to do so. But a number of them are dealing with serious financial problems because of pension costs.
"A combination of inadequate funding over the decades, a wave of retiring baby boomers and the lingering effects of the 2008 financial crisis has forced states to reduce benefits, increase funding or both. But a few states — including Illinois, New Jersey, Kentucky, Connecticut and Colorado — are still far behind, and more drastic measures may be tempting if Puerto Rico can provide a road map to recovery."
Puerto Rico - not a State, but close. And research/stories below:
FACTS - https://en.wikipedia.org/wiki/Title_11_of_the_United_States_Code
Not facts - ct - http://ctmirror.org/2016/05/20/ct-lawmakers-advocates-open-to-new-puerto-rico-bill/
Not facts - D.C. -http://www.washingtontimes.com/news/2017/oct/2/puerto-rico-rebuilding-must-be-accompnies-by-econo/
Atlantic City? Hartford? Who pays for Hartford sewer service since they have a long history of regional governance? And yet another twist.
California the Independent State of Fruits and Nuts
Its cities: http://www.nytimes.com/2016/09/18/business/dealbook/a-sour-surprise-for-public-pensions-two-sets-of-books.html?action=click&contentCollection=DealBook&module=RelatedCoverage®ion=EndOfArticle&pgtype=article
Out for the count? Or is the solution to pass the debt back down the chain to a level of government that CAN go bankrupt? But, since there is no level of government between State and locality in CT (counties do not exist except on maps), that requires voluntary revenue or Grand List sharing to pay for mandated activities that are unfunded??? Hartford AFSCME article: http://www.courant.com/news/connecticut/hc-hartford-union-deal-failed-20170519-story.html
‘We really don’t have a deficit.’
“I think there are some real aspects to [the deficit,] and then I think there are all kinds of muddied aspects to it,” Malloy told The Mirror during an interview last week.
When the legislature’s nonpartisan Office of Fiscal Analysis projects a $1.37 billion hole in 2015-16 finances, more than $300 million of that is an inflationary adjustment.
But Malloy said state agencies routinely are asked to make do without any inflationary funding bump.
Similarly, analysts count some mandated increases in town aid that legislatures and governors routinely waive year-after-year.
OFA counts contractually obligated pay raises for workers, but doesn’t consider that the governor might freeze vacant posts to offset those costs.
The governor insists these and other efficiencies can whittle away three-quarters of the projected shortfall.
As far as the remainder, less than $400 million in red ink, “I have dealt with that size problem throughout my political career,” said Malloy, who served 14 years as Stamford’s mayor. through 2009.
“We really don’t have a deficit,” he said. “I know that’s hard to believe.”
He's right. The governor’s critics, both on the left and the right, don’t believe it.
“What a sad commentary,” said petitioning candidate Jonathan Pelto, a Mansfield Democrat and former state representative. “He’s not functioning in the same economic world that the rest of us live in...” From CT MIRROR April 8, 2014.
Bully bully pulpit story, 2016 DNC Convention; scary stuff: http://ctmirror.org/2016/07/26/analysis-ct-bond-premiums-grow-debt-by-550m-since-2011/
Many big cities face serious pension debt, report says
By Michael A. Fletcher, Published: September 26, 2013
Most of the 50 local governments with the largest pension debt have worker retirement liabilities that are greater than their annual tax revenue, according to a new report from the credit-rating firm Moody’s.
The pension burden posed by current and future municipal retirees is significant and apparently troublesome for many local governments, the report said. Others, including Washington, D.C., have liabilities that appear manageable. The report was issued the same day that Detroit’s emergency manager, Kevyn Orr, indicated that he wanted to freeze the city’s pension plans and move workers into 401(k)-type accounts.
Under the freeze, retirees would still collect pensions but current employees could not accrue further benefits, and some cost-of-living adjustments would end, according to news reports. The freeze must be approved by Michigan’s treasurer and could come under legal challenge because of prohibitions in that state’s constitution against trimming pension payments. The move in Detroit, which filed for bankruptcy in July, came after an auditor’s report found that the city’s pension system made questionable bonus payments to retirees.
The Moody’s report found that other than Detroit, the most severely underfunded local government entities were in the Chicago area, which is also in the state that has the nation’s most severely underfunded pension system...