Richardcyoung.com

The Online Home of Author and Investor, Dick Young

Do You Want to Live in a Super State or a Parasitic City?

By

There will be a huge divergence in paths taken by the Super States vs. the others. One of the others is Connecticut where, it’s capital, Hartford, is becoming even more dependent on its suburbs. Hartford, and other cities like it, are turning into parasites, attempting to feed off the success surrounding them. The Wall Street Journal reports:

When the Nutmeg State’s next legislative session begins in January, lawmakers will face two crises: a budget shortfall of more than $1 billion and the looming insolvency of Hartford, the capital city. Though it doesn’t make many national headlines, Hartford’s budgetary challenge—taxed to the max, junk-rated and facing escalating deficits—ranks among the most serious of any American city. Bankruptcy might be the only way out.

Hartford’s mayor, Luke Bronin, knows that a bailout from the cash-strapped state government is not a likely option. So he has turned to the suburbs for support in stabilizing the city’s budget. At a town meeting Monday evening in Rocky Hill, a pleasant bedroom community to the south, Mr. Bronin spoke in grand terms about how “investing in getting cities strong helps economic growth for the state as a whole.”

The mayor has talked up a “regional” solution to the city’s woes. Interpretations vary as to what that means, but Mr. Bronin has floated the idea of a regional sales tax. If it is to help Hartford’s bottom line, however, it would have to entail some sort of redistribution from higher-income areas.

Suburban taxpayers are perplexed as to how and why they should be responsible for Hartford’s long record of mismanagement. Even after closing a $49 million deficit for the current fiscal year, Mr. Bronin projects growing gaps between expenditures and revenues. Four years from now they will top $70 million, in a total budget of about $560 million. Hartford also owes $410 million in unfunded retirement liabilities and $562 million in bonded debt, according to its most recent audit. Moody’s downgraded Hartford’s credit rating to junk in October.

Below Bronin makes arguments along the same lines to a meeting in West Hartford.

Special Community Meeting with Hartford Mayor Luke Bronin

The following two tabs change content below.

E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.