The state of Connecticut was forced to write off nearly $15 billion of its $25 billion investment portfolio in a fund designed to help municipalities with financial problems.
The $5.6 billion fund was designed to boost the economy and create jobs, but it has become an embarrassment for the governor, a Democratic state lawmaker who was in office for the last four years.
A review of Brownfield’s investments, which are valued at more than $4 billion, found that only $935,000 of the funds were used for municipal purposes.
It was unclear why, if the state had invested in a city, it had not used that money to build more buildings or to provide services for the poor, the review found.
The report by state Sen. William P. Larson (D-Conn.) said Brownfield “has been far from an angel in Connecticut’s financial crisis.
Its failure to make timely investments in capital, including for new construction, infrastructure, and public safety, is a serious concern.”
Brownfield is the largest municipal bond fund in the country, but its investors are mostly state and local governments, and they are not required to make contributions to the fund.
The state has not made a single contribution since 2010.
Brownfield did not respond to requests for comment.
The fund has failed to invest in infrastructure, the economy or job creation.
It also has not invested in municipal services such as schools and health care, according to the state’s report.
The fund has lost $8 billion, or about half its value.
It has not spent any money on a pension plan for its employees, and the state said it has not even spent any of its own money.
The State’s Office of Management and Budget said the fund’s $3 billion shortfall is due to a $965 million shortfall in investments that occurred in the last three years, including $1 billion in municipal bonds.
Brownfield has not been able to repay the money, the state reported.
The state also found that Brownfield did little to boost its municipal bond ratings.
Its municipal bonds fell from AA to AA+ in just two years, and its credit ratings declined from AA-minus to AA-plus in four years, according the report.
It said that Brownfields financial problems have been compounded by the state failing to make investments in the funds it has lent.
State lawmakers are considering a bill to restore some of Brownfields investments.
The measure would require the state to put $7 billion in new revenue into the fund and invest that money in jobs and other government services.
The plan is expected to pass the Senate and Assembly.
