|
February 6, 2008
CCM’s initial response to the Governor’s proposed budget as it affects towns and cities
- CCM applauds the Governor for recognizing that a property tax cap by itself is not the single solution to Connecticut’s property tax crisis. While we remain concerned about such a cap, we are glad the Governor has expressed flexibility on the issue.
- And CCM applauds the Governor for recognizing that mandates relief must be a critical part of resolving the property tax crisis, by proposing a strong mandates reform package. A statutory prohibition against new unfunded and under-funded mandates is a CCM Legislative Priority for 2008. Increasing prevailing wage thresholds as the Governor proposes would be another important mandate relief measure.
- But the Governor has proposed virtually no changes in the levels of statutory formula grants. That simply won’t do the job. Municipal costs – for personnel, education, insurance and energy won’t stop rising because state funding is flat. While the Governor notes that her proposals contain no tax increase for Connecticut residents, failure to significantly increase municipal aid – both education and non-education aid – will result in statewide property tax hikes and cutbacks in local services.
- The overall increase in municipal aid proposed by the Governor is only 3.6% ($98 million) statewide. Factoring in inflation, state aid would increase by only 1.4 percent ($96 million.) Again, adjusted for inflation, education grants would increase by only 2% ($95.3 million). And most non-education grant programs have no scheduled increase at all for the next fiscal year. In real dollar terms, the Governor would cut these grants by 2.1% (-$8.4 million).
- CCM applauds the Governor for her leadership in proposing numerous initiatives to advance responsible or smart growth in towns and cities across the state, in particular new funding for the regional incentive grant program. Greater regional cooperation – and the governmental efficiency it encourages – is an important component of property tax relief.
- And CCM is encouraged that the Governor has proposed several new programs to provide state technical assistance to municipalities, for example in energy procurement. Such programs are a recognition that the State and municipal governments are partners in the governance of Connecticut.
|
|
Ref: 2008 General Assembly Session: Summary of key proposals by Governor Rell concerning towns and cities
| 
