Connecticut May Add to Ballooning Debt With Hartford Rescue
- State will aid capital city by covering its bond payments
- The state’s per-capita debt of $6,505 is nation’s highest
Photographer: Carol M. Highsmith/Buyenlarge/Getty Images
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One of the nation’s most indebted states could see what it owes get even larger under a plan to rescue its beleaguered capital from bankruptcy.
Connecticut is planning to cover the payments on $540 million of Hartford’s general-obligation debt as part of an agreement it reached with the city. Hartford, a 123,000-resident city whose government has struggled to close budget shortfalls and revive its economy, owes almost $755 million in principal and interest through 2036.