Any Deeply Indebted City Might Want the Bailout Hartford Got
- Connecticut to pay debt service on $755 million of city bonds
- Rare for a state to take over bond payments for localities
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It’s a deal that might appeal to any U.S. city struggling with a lot of debt. Hartford, Connecticut, won’t be on the hook for its $755 million in debt payments, helping it avoid bankruptcy.
Hartford officials approved a plan Monday night that authorizes Connecticut to pay off the city’s general-obligation debt, part of a lifeline the state extended to the capital city when it enacted its budget last year. While U.S. states have a history of stepping in to help distressed cities, it’s rare for a state to take on debt payments for a locality.