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May 11, 2009
Towns Need To Know State Funding - Soon
Editorial By: JAMES J. FINLEY JR.
Reprinted from the Hartford Courant
Spring will turn into summer and the start of a new fiscal year before
we blink twice. The state budget clock continues to tick away as
municipal budgets and property tax rates remain precariously up in the
air in towns and cities across Connecticut. Three state budget proposals
are now on the table as the governor and legislative leaders finally
begin negotiations.
Towns and cities, forced to be dependent on an overused property tax and
unreliable state aid, are up against the wall as they face municipal
budget deadlines. Municipalities need answers from state leaders sooner
rather than later.
Municipal officials are on the front lines, leading the way in making
hard choices in Hometown, Conn. - finding efficiencies, reducing
services, working with public employee unions to reduce costs, freezing
and eliminating positions, and grudgingly looking at tax increases. And
we know that in the end the state budget will also have to include
similar steps.
The governor and General Assembly leaders should reach an early
agreement on municipal aid - by Friday - that takes the best parts from
each of the three budget proposals. Compartmentalizing and making an
early decision on municipal aid will help struggling municipalities and
their property taxpayers.
The Connecticut Conference of Municipalities is also calling on the
legislature to pass special legislation that would allow municipalities
to amend their local budgets and property tax rates after they have been
adopted - once the final municipal-aid fiscal package finally is
approved and signed. This would give communities that have already
adopted their budgets the option to restore services and cut taxes after
knowing the certain amounts of state and federal aid they will receive.
The governor, the Democratically controlled Appropriations and Finance,
Revenue and Bonding committees, and the Republicans in the legislature
have separate budget proposals. And although they share some property
taxpayer-friendly aspects, they all differ in how much municipal aid
they would provide.
For example, all three proposals agree on sustaining present levels of
education aid. Education is the biggest piece of local budgets, so while
flat funding doesn't keep up with local costs, it's a good place to
start.
But non-education aid - used for things such as public safety, roads,
senior centers, property tax relief and service continuity - would be
cut under each proposal. Such aid should also be at least level-funded.
But there are bright spots. The Appropriations and Finance package would
inject additional aid into magnet schools, road funding, local capital
improvements, small town economic development assistance, and as much
as $100 million to promote regional cooperation, including a new initiative
to share some state sales tax revenue with regions.
The governor proposed significant funding hikes under the Urban Act for
economic development, clean water projects, and $50 million in state
bonding to encourage regional cooperation. The Republican budget
proposal would help protect funding under the Pequot-Mohegan Grant as
well as sustain current levels of education aid.
Protecting residents and businesses from property tax increases and cuts
in local services will take a combination of approaches. The Connecticut
Conference of Municipalities has presented a blueprint by which the
state can provide property tax relief in the short and long term, using
proposals before the legislature.
This plan focuses on protecting current levels of state aid, providing
real relief from onerous state mandates, providing incentives for
regional cooperation, and giving towns more flexibility to raise their
own revenues.
In a very difficult year, the three state budget proposals have all, in
different ways, made state aid to towns and cities a priority. Local
leaders appreciate the hard work it took to do this.
Legislative leaders and the governor can and should move quickly to
agree on maximizing municipal aid by taking the best elements from each
of the budget proposals before them, and giving towns and cities a
second chance to adjust their budgets and tax rates.
*James J. Finley Jr. is executive director and CEO of the Connecticut
Conference of Municipalities.
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