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CCM says that the Governor’s latest budget proposal calls for nearly $120 million in state aid cuts

CCM says that the Governor’s latest budget proposal calls for nearly $120 million in state aid cuts

Monday, May 2, 2016

Kevin Maloney (203) 710-3486

Joe DeLong (203) 747-0268

The Connecticut Conference of Municipalities (CCM) today said that Governor Malloy’s latest budget proposal presented this afternoon (Monday, May 2, 2016) would cut $73 million in state aid to towns from the State’s Municipal Revenue Sharing (MRSA) Fund; $19 million in Education Cost Sharing (ECS) grants; and another $25 million in School Transportation Funds.

That is nearly $120 million in state aid cuts that would amount to over 10 percent of the state budget deficit.

“This proposal does not provide for significant and structural mandates relief to mitigate the impact of the cuts,” said Joe DeLong, CCM Executive Director. “They are simply deep cuts in current state aid programs that only serve to shift the tax burden from the State onto residential and business property taxpayers across Connecticut.”

For example, the proposal eliminates funding for towns to provide transportation for students who attend private schools, but leaves the mandate in place.

Cuts negate property tax relief back to top

The steep cuts would negate much of the property tax relief promised in the municipal revenue sharing program -- without reforming the overly-restrictive municipal spending cap.

CCM is concerned about the ability of towns to sustain such cuts and provide quality public education and maintain needed services on which the people of Connecticut depend.

“If these state aid cuts are not accompanied by significant relief from unfunded state mandates and or corresponding cuts in other required municipal expenditures, the overwhelming result will be a ‘tax transfer’ from the State to towns and cities,” said DeLong. “CCM and municipal leaders will be deeply disappointed if that is the result.”

Towns are requesting Minimum Budget Requirement and other meaningful mandates relief to accompany any cuts in state aid.