NB Politicus

Turning Red To Blue: Charlotte Koskoff’s 2020 Congressional Campaign

Posted in 5th Congressional District, state politics, Voting Rights by nbpoliticus on October 5, 2019

By John McNamara

In 1996, Plainville Attorney Charlotte Koskoff was the upstart nominee for CT’s old 6th Congressional District against New Britain’s Nancy Johnson, the entrenched incumbent considered unbeatable by pundits, consultants and especially national Democratic Party bosses who put only a pittance into the Koskoff campaign.

By a razor-thin margin of 1,587 votes (C-Span at one point said Koskoff had won), Johnson survived amid her evasive handling of an ethics scandal involving House Speaker New Gingrich and the GOP’s vulnerabilities on weakening Medicare and global trade induced job losses.

Koskoff, who won handily in New Britain with her brand of progressive politics, credentials and genuineness, made two other attempts to oust Johnson before another upstart, Chris Murphy, came along in 2006 to end Johnson’s incumbency as one of the last of the “moderate” Republicans. Murphy, by the way, was Koskoff’s 20-something campaign manager in the tight ’96 race, demonstrating his ability to mobilize Democrats and Unaffiliateds across the district that won him the House prize in 2006 and the U.S. Senate in 2012.

Twenty three years later Charlotte Koskoff isn’t done with Congressional politics, not for herself, but to put progressive Democrats into Congress in districts where Democrats aren’t supposed to win or need a boost to break through.

Koskoff is the co-founder of Save Democracy 2020, an independent organization that targets races around the country where Democratic challengers are making that uphill climb. Save Democracy 2020 is not a political action committee (PAC) doling out donations for its chosen candidates. Instead it shines a light on candidates that need the help to be competitive and directs you to give directly to their campaigns and to help in other ways.  Koskoff formed the group with George Poulin, a labor leader from the International Association of Machinists and Aerospace Workers (IAMAW) who shares Koskoff’s commitment to social and economic justice. Former State Comptroller Bill Curry, who write commentaries for Salon, The Daily Beast and other publications, is an advisor.

Fundamental to Save Democracy is  a “50-state strategy” for Democrats that says the party needs to have a presence and run in all 435 districts. You may not win everywhere but by being everywhere you broaden the base and make the right wing and GOP expend resources in their “safe” districts. Democratic candidates in red districts are “doing the heavy lifting.” They aren’t preaching to the choir but gaining converts and deserve support that pundits and inside-the-beltway, lobbyist-influenced elements of the Democratic Party ignore.

This strategy was proven right when Howard Dean became Chairman of the Democratic National Committee in 2005. Dean was scorned by the likes of corporate Democrat Rahm Emanuel and Clinton’s Carville-Begala team. But in 2006 Nancy Pelosi won her first Speakership as Democrats regained the House majority.

Declares Democracy 2020: “We are The National Coalition for Democratic Congressional Challengers, a small, self-funded, grass-roots group acting on our conviction that the public policy debate and political culture in this country will not fundamentally change until Democrats and progressives have a working presence in each Congressional District After years of hearing national Democratic leaders proclaim that they were now committed to a “50 State Strategy,” but do nothing, 2018 moved the needle. In 2018, we closed the gap, and turned the House Blue, only 3 Republicans ran unopposed”

Last month Save Democracy got an early start on 2020 recommending Democrats in two special elections in North Carolina, a state prone to voter suppression and GOP gerrymandering

In North Carolina’s 9th District Democrat Dan McCready narrowly lost by 1,000 votes in a district marred by the GOP campaign’s voter fraud in the 2018 general election and with district lines stacked against him.

For 2020  Save Democracy plans to choose ten candidates to promote among non-targeted Democratic Congressional challengers and campaigns. “In choosing our races we consider personal strengths of the candidates and the vibrancy of their campaigns, says Koskoff. “We are especially drawn to strong challengers from rural and agricultural districts. Family farmers and their communities have been struggling for years, and right now their crises are acute. Our strong, rural Congressional challengers tell their stories with credibility and eloquence. If elected, they could be catalysts and leaders for meaningful change in national farm policy. And they could win. Their districts used to be full of Democratic voters. It’s time to bring them back. We also look at the power, far-right activity, and rhetoric of the Republican incumbent/challenger. With regard to some of them, it’s a moral imperative, as well as a tactical one, to mount strong electoral challenges.”

In 1996 Charlotte Koskoff was a candidate with “personal strengths” and a “vibrant” campaign that came up short because she wasn’t one of the “targeted” races when a modest boost from her party’s Congressional campaign committee and the DNC would have toppled the “unbeatable” Johnson.  Groups like Save Democracy had they been around then could have been the margin of victory. Koskoff remembers. Through her grassroots, national organization, she and her associates will help 2020 challengers as they push the Democratic Party to leave no district behind in turning red to blue.

Rosemary Klotz To Be Recognized With Award at Democratic Party Women’s Leadership Brunch September 22nd

Posted in Uncategorized by nbpoliticus on September 11, 2019

Rosemary Klotz, an executive aide to two mayors and a volunteer for Democratic campaigns in New Britain for more than 30 years, will be honored September 22nd at the state Democratic Party’s annual Women’s Leadership Brunch.

Klotz, a Democratic Town Committee (DTC) Trustee, leads the nomination committee and candidate recruitment for the  town committee.

News of the award for Klotz drew praise from current and former elected officials.

24th State Rep. Rick Lopes said Rosemary Klotz is “a truly deserving resident and citizen of our town and country. She not only brings hard work and passion but also thoughtfulness and clear thinking that always helps advance progressive movements forward.”

“I would say Rosemary always exhibits a high level of professionalism, tempered by compassion and principled decision making,” said former Commissioner and State Senator Don DeFronzo, who worked with Klotz during his mayoral administration from 1989 to 1993. “She is conscientious, thoughtful and considerate of varying opinions. I always valued her advice when mayor and for years after.”

Said Former Mayor and State Representative Tim O’Brien: “Rosemary has passionate and strong progressive values, while also being steadfast and level-headed in the work that needs to be done to win on those values. I was glad to work with her when I was Mayor, and I feel fortunate to have her has a friend.”

Democratic Town Chair Bill Shortell nominated Klotz for the state party’s women’s award.

Klotz follows three other New Britain Democratic women who previously received the state party leadership award, including Harriet Geragosian, Emma Pierce and Shirley Black. In addition to her public service career Klotz has been a workforce development and employment specialist in the New Britain area for the Human Resource Agency and Workforce Investment Act programs.  She is a graduate of Central Connecticut State University.

The Women’s Leadership Brunch will be held Sunday, September 22 at the Aqua Turf Club, 556 Mulberry St, Plantsville.  Doors open at 10:30. Tickets are $65 and may be purchased at the Connecticut Democrats website.  Klotz will be recognized with nine other women from the state’s five congressional districts. Receiving the Governor Ella T. Grasso Leadership Award will be Secretary of the State Denise Merrill.

Rep. Sanchez Makes “Respect” for Early Childhood Educators A Priority As New Chair of Education Committee

Posted in Legislature, public education, state aid, state government by nbpoliticus on January 20, 2019

By John McNamara

State Rep. Robert “Bobby” Sanchez (D-25) is the new House Chair of the Legislature’s Education Committee who brings a strong background in early childhood education to his leadership post in the General Assembly this year.

Sanchez, a former New Britain Board of Education member elected to the House in a 2011 special election, shared his priorities at a League of Women Voters legislative breakfast January 19th at New Britain Public Library.

“Teachers in early childhood education are not respected,” said Sanchez, noting that most early childhood professionals entrusted with the care and development of pre-schoolers are not fairly compensated.  In Connecticut with its high cost of living, child care staff fare much better than the national average of $29,000 ($14 per hour), earning upto $40,150 ($19.30).  Advocates, however, say classroom teachers and aides not covered by union contracts can fall below the average.  On top of pay inequity, Sanchez also points to the requirement that all early child educators will need to hold bachelor’s degrees within a few years to meet accreditation standards. Getting those credentials means education expenses to make the grade as early childhood professionals.

Sanchez, a longtime case manager of early care and education and coordinator of the Fatherhood Initiative at New Britain’s Human Resource Agency,  knows the pay struggles of the people he works with every day.  Rep. Sanchez’ early childhood roots  go back deeper than you may know. “Bobby” is the moniker he uses on election ballots and with friends  — a name he probably latched on to when a teacher called him that at a Head Start classroom in New Britain when he was four years old. It may be that Sanchez is the first Education Chair who’s an alumnus of one of the Great Society’s most enduring programs that launched the movement for quality early childhood education for low-income children in the 1960s.

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State Rep. Bobby Sanchez LWV Legislative Breakfast  (photo courtesy of Frank Gerratana)

Sanchez’ views are in sync with the Connecticut Early Childhood Alliance and its Executive Director, New Britain BOE Member Merrill Gay. “Early childhood teachers are among the lowest paid profession in the state,” according to the Alliance in advocating for supporting the child care work force last year.  “Early childhood teachers often rely on Care4Kids, HUSKY, SNAP and fuel assistance to make ends meet.”

To address the issue, the Alliance and legislative allies such as Sanchez are likely to push for “an increase in the full-day, full-year rate to $10,000 per child for School Readiness and state funded Child Development Centers indexed to any increase in the minimum wage, a higher infant toddler rate in recognition of the much lower staff to child ratio, delaying the B.A. degree deadline, and providing a rate bonus to programs that reach the staff qualification goal so they can retain the staff.”

The Education Committee will be addressing a score of major issues in the 2019 session, including school safety, curriculum, the education cost sharing (ECS) formula for school districts and child care subsidies that can nudge the pay for early childhood teachers up a notch.

It may be a tall order to secure adequate school aid and child care subsidies with state government saddled with built-in deficits and the pent up needs of other key services in the state budget this year  But Sanchez and his allies in education are prepared to make the case to Governor Lamont and the General Assembly that better pay for those who care for the very young are smart investments for the state’s future.

Stewart Penalized For Using Taxpayer Mailing To Boost Her 2017 Re-election Campaign

Posted in Campaign Finance, city politics and government, New Britain Republicans by nbpoliticus on December 1, 2018

Mayor Erin Stewart violated state campaign law by promoting her candidacy through an official mailing of tax bills to city residents during the 2017 municipal campaign, according to a ruling by the State Elections Enforcement Commission (SEEC).

The SEEC, at its November 14th meeting, fined Mayor Stewart $500, citing a violation under state law (9-610) that prohibits incumbents “during the three months preceding an election in which (she) is a candidate for reelection or election to another office” from using “public funds to mail or print flyers or other promotional materials intended to bring about his (or her) election or reelection.”

Using her campaign slogan “Leading The Way” in the taxpayer-funded brochure, Stewart cited saving the city from fiscal ruin, good bond ratings, reorganizing city hall departments “to find efficiencies and improve customer service and “a continuous commitment to provide our teachers and our children with the proper tools for learning and exploring.”  The official message was a carbon copy of what could be found at the time on Stewart’s campaign website.  The mailing with the brochure was sent by Tax Collector Cheryl Blogoslawski’s office and paid for by the city. Although the mailer came directly from the Tax Collector’s office, Ms. Blogoslawski was absolved of any wrongdoing by the commission.

During the SEEC inquiry Mayor Stewart, through an attorney, defended her use of the mailing at the height of the municipal election season. “The pamphlet is issued annually and is sent in the same envelope with our property tax bills. Given the lack of a timely issued state budget and the commensurate uncertainty surrounding final municipal aid (and, therefore, our tax rate), New Britain joined many other municipalities across Connecticut in electing to post the property tax bills later than normal this fiscal year,” Stewart argued. She contended that the “message from the Mayor to taxpayers” and “a section discussing progress made by the City in numerous areas” contained “nothing of a political nature.”  The mailing at issue was first reported in September 2017 in an NBPoliticus post  and in a story published by The New Britain Progressive

Rejecting the Mayor’s argument on a complaint brought by Democratic Town Chair Bill Shortell,  the SEEC found that Stewart’s “message from the Mayor” and the citing of New Britain’s accomplishments “are irrelevant to the tax bill and therefore their inclusion in the mailer is violative of 9-610. The Commission finds that the mailer plainly could have been limited to the mill rate and various other information regarding motor vehicle taxes in New Britain, without including favorable references to the budget and past performance  of the Mayor of New Britain and her administration.”

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Brochure advancing Mayor Stewart’s campaign sent with motor vehicle tax bills at the height of the municipal election campaign in 2017. State law bars use of public funds for candidate promotions within three months of elections.

Related Posts

Did Stewart Get A Prohibited Campaign Freebie In Mailing of Car Tax Bills?

Will Erin Stewart Get Another Off The Books Push From An Absentee Landlord in 2017?

 

Former Senator Harper To Be Remembered at CCSU Thursday, June 14th

Posted in Uncategorized by nbpoliticus on June 10, 2018

New Britain Democratic Town Committee

A public tribute to former State Senator Joseph H. Harper, Jr. will be held Thursday, June 14th from 6 to 8 p.m. at Central Connecticut State University’s Founders Hall.

Harper, a six-term 6th district state senator and Deputy State Treasurer, died May 20th at the age of 70.

Senator Harper, the Co-Chair of the Legislature’s Appropriations Committee during his senate terms, was instrumental in building state budgets, and bringing millions of dollars back to his hometown of New Britain. A former Alderman and mayoral aide in New Britain, Harper also served two terms in the State House of Representatives After retiring from the Senate, Harper continued public service and advocacy work  as a Deputy State Treasurer, as a Vice President at Central Connecticut State University and most recently as the Vice President of Government Relations at The Hospital for Special Care (HSC). In 2006, Gov. M. Jodi Rell and the…

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Remembering Senator Joe Harper: “One Of A Kind”

Posted in In Memoriam, New Britain history by nbpoliticus on May 23, 2018

By John McNamara

Joe Harper, New Britain’s  former state senator and a local Democratic Party leader for a generation, died May 20th at the age of 69.

Harper’s public service — mayoral aide, state representative, state senator  — is being remembered as “iconic” and legendary by former colleagues and state Capitol observers. Mark Pazniokas in the Connecticut Mirror aptly described Joe Harper as “a Falstaffian, old-school politician who zealously protected his New Britain district as a Democratic state lawmaker.”

That stemmed from Joe’s reputation as a consummate and crafty lawmaker.  His legislative career began as the 24th District State Representative. Reflecting his labor and progressive roots, he was a liberal firebrand in his two terms in the the House at one point calling for a state takeover of public utilities to rein in electric rates.  By the time he reached the Senate he knew how to wield his legislative powers as the Chair of the General Assembly’s Appropriations Committee with his House Co-Chair Bill Dyson of New Haven. Working with then Senate President John Larson and Governor O’Neill, Harper’s priorities over six terms usually prevailed to the benefit of his constituents in New Britain.  In that state senate triumvirate  of Larson, Majority Leader Cornelius O’Leary. and Harper, Joe was the strategist who drove the legislative train.  O’Leary and his close friend, Congressman Larson, would be the first to say so.

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Joe Harper at a rally for Democrats in 2010.

For Harper’s political “family” in New Britain Joe became an unofficial patriarch and mentor to contemporaries and those who would follow him into the Legislature and politics over the last 30 years.

Outside of the state capitol the “old school”  politics, going back to Joe’s time as an aide to Mayor Matthew Avitabile, included its share of Town Committee fights and  local contests tinged with the rough and tumble of ethnic politics.  And most of the time Harper won because he brought people together.

Former Town Chair John King recalls his election as Party Chair came in 1984 when Harper teamed up with unlikely allies Don DeFronzo and Mayor William “Billy Mac” McNamara to win 14 district races for town committee.   “Joe was a very good friend and mentor and was responsible for my becoming Chair,” recalls King, an ally of Mayor McNamara. Five years later, in 1989,  Harper was the driving force in the coalition that formed around DeFronzo in his successful bid to unseat the six-term Mayor McNamara.

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30 Years Ago: Joe Harper (back center) led New Britain friends and delegates, including Connie Wilson Collins, Emma Pierce and John McNamara, to the 1988 Democratic National Convention in Atlanta.  Harper, working  with SANE Freeze and the United Auto Workers, formed the delegation in the old 6th Congressional District in a display of his coalition building skills.

Following his legislative career, Harper’s work continued by serving as a deputy state treasurer, vice president of Central Connecticut State University and a vice president at the Hospital for Special Care (HSC).

In recent years Joe Harper, with care and support from HSC,  took on the disease of  obesity,  displaying extraordinary character and courage to overcome a personal health challenge that would not defeat him and never stopped his public service that leaves a legacy of benefits and accomplishments in New Britain.

To all who worked with him through the years on campaigns and policy making Joe Harper’s  loss is like losing a brother in your own family.

His gregarious nature and good humor brought a joy to politics that is increasingly harder to come by these days.  He was, in the words of 24th State Representative Rick Lopes ” one of a kind.”

 

 

Remembering April 4, 1968

Posted in 1968, civil rights, In Memoriam, national politics, Poverty by nbpoliticus on March 31, 2018

By John McNamara

I remember exactly where I was on April 4, 1968.

That sunny and warm Thursday,  like many others in my senior year in high school, I drove to Bradlee’s Department store on the Lynnway in Lynn, Massachusetts after school to punch in for the evening shift, earning some money before entering Boston University in the fall.

News spread quickly into the evening that the Rev. Martin Luther King, Jr. was dead at the age of 39.

It didn’t take long to realize that my shift as a retail clerk would be different from all the others. The store quickly emptied out. Not a customer in sight all night. No need for Mr. Silverman, the shaken and somber store manager, to send me out on outside carriage control. The bullets in Memphis were enough to bring a normal business day to a halt in Lynn and most of the nation as big cities teetered on the brink of a violence that King sought to avoid with acts of non-violent resistance.

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New Britain’s Memorial at MLK Park.

Just five short years before I had come home from junior high on a late summer day to watch King deliver his “I Have A Dream” speech – an event that would inspire so many of us to become community and political activists.

There are many good remembrances of what King said and stood for on his national holiday and at the permanent memorial in Washington every year.

But the nation could stand to be reminded again of the day King was killed and why he was in Memphis a few years after the Voting Rights and Civil Rights Acts became the law of the land.

By 1968, Rev. King was widening the concerns of his movement. In Where Do We Go From Here?  King, much to the consternation of the more cautious members of his movement and the political establishment, opposed a Vietnam policy that had begun to break the nation further apart. The lunchroom sit-ins and battles over accommodations and voting rights were giving way to a broader agenda. He was planning a new march on Washington – “the Poor People’s Campaign” — when he decided to take up the cause of 1,300 Black sanitation workers in Memphis, a city of southern segregation, where the white power structure opposed the right to unionize and the Mayor vowed never to bargain in good faith in a way that would give the sanitation workers their dignity. The strike and a citywide economic boycott were a cause King knew he could not ignore.

King’s prophetic “I’ve Been to the Mountain Top” speech on the eve of the assassination is his best known from Memphis. But two weeks earlier, on March 18th, King galvanized support for strikers by saying: “So often we overlook the worth and significance of those who are not in professional jobs, or those who are not in the so-called big jobs…..One day our society will come to respect the sanitation worker if it is to survive.” Following King’s assassination, the Memphis power structure gave up its intransigence – recognizing the union, awarding pay raises and instituting merit promotions.

Fifty years later Rev. King’s  work goes on and is being renewed for a new generation. Led by the Rev. William Barber of North Carolina and others a “moral direct action” campaign is mobilizing a 2018 Poor People’s Campaign  for the same principles  that led Rev. King to Memphis and his last days.

King’s campaign for striking AFSCME sanitation workers reaffirmed his greatness at the hour of his death and resonates today in the cause of social and economic justice. That’s why I’ll always remember 4/4/68 as a day frozen in time not to be forgotten.

Adapted and updated from an April 2007 post.

City Taps Patton Brook Well For Water After Calling Off Bargain Basement Sale, Hiking Rates To Pay For MDC Water

By John McNamara

More than a year after the Stewart administration and Common Council sought to sell off the Patton Brook Well at an undervalued price of $1 million the unused well is replenishing the Shuttle Meadow reservoir.

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Patton Brook Well culvert near Shuttle Meadow Reservoir  (Photo taken Sunday, November 5, 2017)

Mayor Stewart and her Council majority authorized the sale in August 2016, seeking to give up the nearby water source that is part of New Britain’s coveted watershed land in the region. The Town of Southington, where the watershed parcel and pump station are located, was the prospective buyer.  Previously New Britain shared Patton Brook with Southington at  reasonable rates for decades but used its other sources for city residents.

In the her second attempt to jettison Patton Brook altogether,  Mayor Stewart and her Common Council allies insisted that repairing the well for New Britain’s use would be too costly and that Patton Brook did not figure prominently in the city’s water reserve plan. The flow of water from Patton Brook through a culvert into the Shuttle Meadow Reservoir with little in the way of repairs and expense contradicts the Mayor’s assertions that the well could not be turned back on for New Britain without a major capital expense.

 

 

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Water flows from Patton Brook Well into New Britain’s Shuttle Meadow Reservoir on Sunday, November 5th, 2017

In winning an  11-4 Council vote for the sale of Patton Brook Well in the summer of 2016, Mayor Stewart accused opponents of “political posturing” and spreading “outright lies and unfortunate misinformation.”  Said Stewart:  “We are not selling the New Britain Water Co. and have absolutely no intentions of doing so. We are transferring ownership of a physical well that isn’t connected to the city’s water pipes and hasn’t been used by the city in decades. The Patton Brook well sits on a 0.61 acre parcel of land in Southington and is valued at around $61,000.”

Amid strong public opposition and an ongoing drought that forced the water department to hike rates to pay for $400,000 in Metropolitan District Commission (MDC) reserves this year, Stewart finally relented last April as officials were awaiting state approval of the sale.

Opponents of the well sale say the city administration became aware of a developing drought as early as December 2015, but took no appropriate action to conserve supplies nor warn residents as efforts to sell Patton Brook proceeded.

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Water from Patton Brook culvert may be flowing into Shuttle Meadow reservoir. Photo taken on Sunday, November 6, 2017

In a related development the Connecticut General Assembly enacted legislation introduced by State Rep. Rick Lopes (D-24) requiring that municipalities or water departments to obtain an independent appraisal of public watershed before it can be sold.

In early October acting Water Director Ray Esponda  told the New Britain Herald that water from Patton Brook can flow into the Shuttle Meadow Reservoir, but that it would take $1 million in repairs to allow the well’s water to reach other reservoirs in the city’s regional reservoir system.

Last month the city Water Department also contradicted Mayor Stewart’s $61,000 value, confirming that the well has a current capacity of at least one million gallons a day. Translated into consumer water rates the city would quickly obtain a return on a $1 million investment whether it leased the well’s water or needed it for use by city residents.  Alternatively, funding from the Army Corps of Engineers could be pursued to add capacity to New Britain’s regional watershed and supply.

 

 

 

 

 

 

Numbers Don’t Back Mayor Stewart’s Claim That State Budget Caused City’s Negative Credit Rating

Posted in Uncategorized by nbpoliticus on November 5, 2017

By John McNamara

Mayor Erin Stewart has blamed this year’s state budget crisis for the city’s negative credit rating in response to a November 2nd report of an “escalating”  debt and her administration’s own budget that shows interest payments will cost taxpayers tens of millions of dollars over the next four years.

“We were downgraded by Moody’s along with many other cities and towns across Connecticut as a result of the state budget crisis,” the two-term Republican told the New Britain Herald.

Democratic Mayoral Nominee Merrill Gay, citing double-digit tax increases and a debt load rising to “$75 million”, said Ms. Stewart is mismanaging the city’s finances. “Mayor Stewart’s poor financial planning will cost New Britain taxpayers,” Gay said. “New Britain needs real economic development without increasing the debt despite two tax increases.”

The state Legislature, dealing with deficits caused mainly by unfunded pension liabilities,  finally adopted a biennial state budget at the end of October after a  four-month stalemate.

While the protracted debate in Hartford created short-term uncertainty for cities and towns, New Britain will  maintain state aid amounts it gets as an economically distressed community.  In the current fiscal year that ends June 30, 2018, state aid will be a projected $101 million to pay for schools and government — the same as it received last year. In 2019 the city will be cut by $191,000 from 2017.

City and town officials, including Mayor Stewart, are correct that state government’s continuing fiscal problems can adversely impact local government finances.  Moody’s Investor Services, however, did not cite state budget woes for New Britain’s latest downgrade in the municipal bond market.  Instead the investors’ rating agency pointed to the city’s higher debt costs alluding to new deferments on short-term and capital bonding that will spike interest over the next five years or more.  Whereas consumers and governments usually look to re-finance for lower interest rates the Stewart administration is doing the opposite, re-financing debt that will result in sharp interest rate increases in the near term.

Early this year the Stewart administration and the Common Council pushed the city’s debt further into the future after being told by bond counsel that interests rates would rise in the out years. The result was a short-term $6 million savings to be paid back with much higher interest after the current fiscal year ends.

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Graphic shows New Britain’s escalating debt payments. (Source: Municipal Budget Book)

 

New Britain’s Bond Rating Drops From Stable To Negative: Huge Spike In Debt Through 2021 Cited By Moody’s

Posted in city government, City Hall, municipal budget, New Britain, Uncategorized by nbpoliticus on November 4, 2017

By John McNamara

Republican incumbent Mayor Erin Stewart, in her re-election campaign this year and throughout her second term, has touted improving municipal bond ratings for New Britain’s fiscal solvency, claiming credit for budget surpluses of $15 million and pushing spending up at City Hall with no need for an election year tax increase.

Fiscal stability is the cornerstone of her platform and a main talking point in her aspirations to leave the mayor’s job for statewide office. Her campaign’s website points to New Britain “gracing the cover of the Bond Buyer, a trade publication covering the municipal bond market, “not once but twice. The city under her management is a shining example for how to make a financial turnaround work during a difficult economy.”

The November 2nd edition of Bond Buyerhowever, paints a different picture for the city’s finances in the  latest analysis, portending a difficult road ahead for the city’s budget over the next four years.  Moody’s Investor Services, which along with Standard & Poor’s, assesses the borrowing ability and fiscal health of cities in the municipal bond market, has downgraded general obligation borrowing to Baa2 from Baa1. “Moody’s cited New Britain’s reliance on nonrecurring revenues to stabilize its financial position in recent years. The rating agency also revised its outlook on the 73,000-population city to negative from stable,” Bond Buyer’s Paul Burton reported. “The rating also incorporates the city’s elevated debt profile with rapidly escalating debt service and its modest pension liability,’ the rating agency said Tuesday.”

In contrast to Moody’s downgrade four months into the 2018 fiscal year, Standard & Poor’s has previously affirmed  a more favorable A-plus rating for New Britain after upgrading the city four notches through two upgrades.   Moody’s last assessment came in 2014.

According to the Bond Buyer story:

Moody’s said the negative outlook reflects the short-term challenge New Britain will face to match recurring revenues with recurring expenditures while managing its debt service pegged to spike through fiscal 2021. New Britain, said Moody’s, could earn an upgrade through a sustained trend of structurally balanced operations without one-shots, a material reduction in debt burden, growth in its tax base or an improved resident wealth and income profile.  By contrast, continuing reliance on nonrecurring revenues, erosion of its financial position, taking on more debt or deterioration of New Britain’s tax base or wealth profile could lead to a downgrade.

The Moody’s downgrade may be related to action taken by the Common Council prior to the end of the 2017 fiscal year at the behest of the Stewart administration when debt payments were deferred in the last fiscal year pushing the debt into this year and succeeding years when interest rates on the city’s borrowing will be accelerating.

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