[JayCT]

The Beacon Falls Fuel Cell Park, the largest one in the world, looks to be moving forward with a tax deal with the town. Construction is anticipated to begin this year and be completed in 2019. With one of the state's largest construction companies as its parent I am pretty certain this is going forward. Looks good for everyone. Jay

Beacon Falls approves fuel cell tax deal | HartfordBusiness.com

[hartford_renter]

Originally Posted by JayCT

But that is not what you posted. The plan offered can change but you can't change what was given in the past. Jay

Well the state can just declare bankruptcy

The bondholders get a reduced payout and the pension holders get a reduced payout. This is what happened in new falls RI and Detroit

[Mike 75]

There is no provision in the bankruptcy code for state bankruptcies. Municipalities yes, states no. So unless the law is changed, the states do not have this option.

[hartford_renter]

Originally Posted by Mike 75

There is no provision in the bankruptcy code for state bankruptcies. Municipalities yes, states no. So unless the law is changed, the states do not have this option.

If a state has no money it will go bankrupt period.

Are you going to take the police and start confiscating property? No investor is going to lend the state money and it won't be able to raise money by issuing bonds.

The law doesn't matter and the state always just change the law. That is where CT is headed

[mlassoff]

Originally Posted by hartford_renter

If a state has no money it will go bankrupt period.

Are you going to take the police and start confiscating property? No investor is going to lend the state money and it won't be able to raise money by issuing bonds.

The law doesn't matter and the state always just change the law. That is where CT is headed

The state can't and won't go bankrupt. Eventually some combination of tax hikes and spending cuts will end the current crisis. Some will probably find this untenable and move...

THe state retirement system needs to be privatized for future employees. We also need to keep our obligations to those who worked for the state in the past...

[Mike 75]

Originally Posted by hartford_renter

If a state has no money it will go bankrupt period.

Are you going to take the police and start confiscating property? No investor is going to lend the state money and it won't be able to raise money by issuing bonds.

The law doesn't matter and the state always just change the law. That is where CT is headed

I think you are confusing bankruptcy with insolvency. Bankruptcy law is federal law. CT cannot change it on its own. Since there are several other states in CT's predicament, its possible that Congress could make states eligible for bankruptcy. We shall see.

[BobNJ1960]

Originally Posted by mlassoff

The state can't and won't go bankrupt. Eventually some combination of tax hikes and spending cuts will end the current crisis. Some will probably find this untenable and move...

THe state retirement system needs to be privatized for future employees. We also need to keep our obligations to those who worked for the state in the past...

Legally bankrupt-correct, but the courts would have no power to impose tax hikes, nor enact spending cuts. Illinois will be first, and will no doubt try to get Congress to allow state bankruptcy reorgs. Since I doubt the USA would bail out a state, a suspect the law will be changed to allow state bankruptcies.


I do agree state legacy, nationally, must be capped and grandfathered to exclude additional vesting for those not very close to retirement age.

[JayCT]

What are you all talking about? The state is no where near going bankrupt so stop talking like it is. Jay

[BPt111]

When the Governor makes his ‘State of the State’ address next Wednesday and announces his plans for the next budget year, he will already be in red ink this year because the budget fix he signed into law just last month is not working. It’s already about $70 million in the hole.

“It was just sticking gum in a hole fixing the problems instead of going and making structural changes in the long run. This is exactly what we were afraid would happen,” said House Minority Leader Themis Klarides (R-Derby.)

And what makes matters even worse is that the next budget year is already predicted to be half a billion dollars in the hole with even more projected red ink as far as the eye can see after that.

This constant government budget instability is one of the things that GE said was a factor in their decision to move to Boston. They told some state lawmakers that they didn’t trust the state government. Added Klarides, “Most would think that when he says ‘I will not propose taxes’ that would mean he would not support taxes. He doesn’t mean that he said he will not propose taxes before and we’ve seen him do it not once but twice.”

“I’ve been very clear,” said the Governor, “I’m not proposing or am I supporting tax increases.” When reminded that he said the same thing a year ago, the Governor replied, “Yes and the opportunity to address ‘Property Tax’ reform and to begin the journey on transportation presented itself.”

Malloy thinks he gets a pass on the ‘No Tax Hike’ statements last year because come this July, car and truck owners in the cities will see a cut in the ‘Car Tax.’ and a portion of the ‘Sales Tax’ is now going to plan for his big transportation rebuild which everyone agrees is needed.

When he announces his budget next week, it will include more spending cuts. When he did that last year, Democratic lawmakers balked and hiked taxes and he went along with it.

He says things are different now, “There’s a new normal…it’s slower growth…it’s less revenue.”

The largest revenue generator for the state; the “Income Tax” continues to produce less than they thought and with the sour stock market that’s not likely to improve.



Malloy: “I am not proposing tax increases” | WTNH Connecticut News

Dan Haar: Amid Malloy's No-Tax Promise, Budget Squeeze Comes Into Sharp Focus - Hartford Courant

[BPt111]

Connecticut is expect to be 500 million in deficit this year and 1 billion next year