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Legislative Update
November 24, 2009

Governor Proposes Mid-Year Cut In Municipal Aid Another $84 Million Hit For Towns and Cities

Governor Rell today recommended a new $470 million budget-mitigation plan that proposes at least $84 million in municipal aid reductions.

The $84 million in cuts are not specified in the Governor's proposal. Rather, according to OPM, they would be proposed by a 12-member panel comprising six legislators and six municipal officials – two from large cities, two from mid-size communities and two from "rural" towns. It is unclear how those designations would be determined.

The Governor's press release states that the panel will also be asked to make proposals for "immediate mandate relief".

The $84 million does not include additional reductions that the Governor proposes to be made in several smaller programs that also provide funding for municipal purposes, such as elimination of all funding of Regional Planning Organizations, a 25% in funding of Youth Services Bureaus, elimination of funding for Neighborhood Youth Centers, a $3 million reduction in interdistrict cooperative funding and "suspension" of the After School Program ($4.9 million).

CCM will urge the General Assembly to reject this and any state budget proposal that would cut municipal aid, and thus raise property taxes.

CCM will keep members apprized as details are forthcoming.

If you have any questions please contact Jim Finley (jfinley@ccm-ct.org, 203-804-6901) or Gian-Carl Casa (gcasa@ccm-ct.org, 203-803-6901).



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