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Connecticut Offers Properties for Sale by Owner to Solve Budget Worry

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By : John Cutts    99 or more times read
The state administration of Connecticut has launched several properties for sale by owner in the hope of earning a minimum of $60 million of sales to assist in balancing the stateís budget books. So far, the state government has earned only $1.5 million from its property sales.

Among the properties being sold by the state are detention facilities in Hamden and Bridgeport for juveniles; a Norwich psychiatric hospital; a Litchfield jail building; an armory building in Manchester; group facilities for the mentally impaired in New London, West Haven and Farmington; and several single-family houses.

According to the local government, the $60 million target would cover the current fiscal yearís target of $15 million, plus the $45 million reserved for the 2010-2011 fiscal period. Meanwhile, critics have argued that the plan is overly optimistic. They also argued that the sale is just another way for the government to push budget problems into the succeeding term.

Some state representatives have also expressed doubts about the soundness of the plan, claiming that the local government is building its budget based on positive assumptions. They argued that the state should be planning for the worst and hoping for the best, not creating plans that hinge on mostly positive expectations and then getting disappointed when the worst happens.

According to the critics of the plan, if the properties for sale by owner fail to sell, the worst possible scenario is that the state will face a budget deficit of $3.37 billion. They added that this problem will be the responsibility of the incoming governor since current Governor M. Jodi Rell is not seeking reelection.

In response, Rellís camp has asserted that the current administration has eliminated the shortfall worth $726 million for the 2010-2011 period without increasing taxes. However, the plan did impose a monthly surcharge of two-three dollars on most householdsí electric expenses.

Rell has reportedly instructed government agencies to come up with as much revenue as they could through the sale of the properties. The governmentís office reportedly stated that selling the properties will inject cash to Connecticutís coffers without burdening employers and taxpayers.

Local policy observers have stated that the properties for sale by owner being offered by the local government would need to be sold to balance the budget for the next two years. Despite criticisms from some camps, the governorís office is optimistic that the properties will be sold and the budget will be balanced before the next governor takes over the reins.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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