ANSONIA – For the first time in decades, Ansonia is no longer on the state’s “distressed municipalities” list.
The state Department of Economic and Community Development (DECD) published its annual ‘distressed municipalities’ list Oct. 29. It includes 25 municipalities. For the first time since before 2010, Ansonia does not appear on the list.
State officials told The Valley Indy the change is because of improvements in Ansonia’s unemployment rate and per capita income.
“Ansonia’s unemployment rate dropped, and its 10-year change in employment and 10-year change in per capita income were significantly higher than other towns,” said Nandinka Prakash, the DECD’s chief economist and director of research.
Between 2024 and 2025, Ansonia’s per capita income increased from $40,604 to $45,144, according to state data. Its unemployment rate also dropped from 5.1 percent to 4 percent over the same period.
In 2019, Ansonia was No. 1 on the distressed municipalities list.
Mayor David Cassetti’s office announced the news in a Facebook post Nov. 5.
Cassetti told The Valley Indy that Ansonia has improved over his tenure because of economic development projects downtown, including the construction of apartments up and down Main Street.
“We’ve been doing things to make Ansonia a better place, and I think we proved it over the last 12 years, and I think that’s how we were able to get off the list,” Cassetti said.
Cassetti, who will leave office at the end of the month after losing to Frank Tyszka in the mayoral race Nov. 4, said the change shows Ansonia has developed a strong financial background.
State Rep. Kara Rochelle, who represents Ansonia in the state House, told The Valley Indy she’s worked on bringing job opportunities to Ansonia, including an annual job fair which she sponsors and Career ConneCT, a state program she helped develop which provides job training opportunities. She said those programs helped Ansonia get off the list.
“I’ve put a lot of thought into the ways that we can move the dial on this, and so you work really hard, and you hope it’s going to bear in the numbers,” Rochelle said. “It’s a relief that my neighbors are in a better position than they were.”
Rochelle cautioned that the list has shortcomings – it doesn’t take into account inflation, for instance – and pointed out that Ansonia and Derby are still ranked No. 11 and No. 9 on the Public Investment Community Index, another state-managed list which ranks communities on measures of economic need.
The distressed municipalities list is used by the state to help make decisions on where to send money for projects, including contaminated soil remediation, economic development, housing, and other programs. By state law, Ansonia will continue to be considered a ‘distressed municipality’ for the purpose of those calculations for another five years.
It means Ansonia could receive less state aid in the future, though that won’t kick in until at least 2030.
It also means Ansonia will continue to make appearances before a state advisory panel for the foreseeable future. Rochelle authored a provision earlier this year which referred Ansonia to the Municipal Finance Advisory Commission on the basis of its status as a distressed community, a move which Cassetti’s administration called a political stunt.
Ansonia made its first appearance before that panel in July. Its next scheduled appearance is Nov. 19.
Derby also showed economic improvement over the last year, though it remains on the list as the No. 20 most distressed community in the state.
