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CCM Assesses Recommendations By Commission on Fiscal Stability and Economic Growth

CCM Assesses Recommendations By Commission on Fiscal Stability and Economic Growth

Thursday, March 1, 2018

Contact: Kevin Maloney (203) 710-3486

The Connecticut Conference of Municipalities (today, March 1, 2018) commended the State’s Commission on Fiscal Stability and Economic Growth for bringing forth a wide range of thoughtful recommendations that would restore lasting financial stability to the state budget and to the critical fiscal partnership between the state and towns. CCM will fully assess each of the proposals for their local impact, yet it is important to note that in addition to the potential municipal impact, it is critical that the commission’s call for action receive full consideration by the General Assembly – this session.

Help elements back to top

On initial review, key elements of the plan that will help towns and cities include:

  • Giving towns, through their local COG, the option to raise local revenue by charging an additional 0.5 percent in sales tax. It would be authorized by the local COG and disseminated on a regional basis
  • Increase fees and taxes related to stormwater, hotels, car rentals and restaurants.
  • Require the State pay a higher PILOT payment to municipalities on the properties it owns.
  •  Provide that non-union labor be permitted on rehabilitation projects costing under $1 million.
  •  Provide towns with a single neutral arbitrator for municipal labor negotiations.
  • Protect up to 15 percent of a town’s fund balance from being used to pay for labor contract settlements.

The commission also proposes to eliminate collective bargaining for fringe benefits for state employees. This proposal should be expanded to also cover municipal employees.  

Connecticut has long been the land of steady habits, but the precarious fiscal condition that still plagues the state budget demands that Connecticut change some key core public policies – now. Much like the This Is Different Report released by CCM, the commission’s set of recommendations are significantly different and entirely reasonable. We can wait no longer for substantive change that will set the State on a sustainable economic path that will benefit hard-pressed residents and businesses.