Politics & Government

Towns Hold Collective Breath, Wait for Decision on State Aid

As the deal with the state unions appear dead, Tolland and other municipalities, and their advocates, prepare to fight to retain state aid.

With more state unions rejecting the tentative agreement that could have saved the state $1.6 billion over the next two years, municipal advocates are urging Gov. Dannel P. Malloy to not look to state aid to towns as a means of balancing the state budget.

In a letter today to the governor, Connecticut Conference of Municipalities Executive Director James J. Finley Jr. told Malloy that most cities and towns in Connecticut have already set their budgets and tax rates for the coming fiscal year, which begins July 1. Local property tax bills for the coming year will begin going out next week.

Tolland is no exception; taxpayers approved the $50.43 million municipal budget on May 31 and the tax office has been preparing to send out the bills at the end of the coming week.

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In his letter, Finley hints that cutting aid to towns and cities could destroy the good rapport Malloy has forged with local officials since taking office in January.

“During the regular legislative session, your steadfast resolve to avoid balancing the state budget on the backs of towns and cities and their residential and business property taxpayers set you apart as a governor.  It was the right thing to do then, and it is the right thing to do now,” Finley wrote.

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“You have, in less than six months in office, reinvigorated and transformed the State-Local Partnership.  Your partners at the municipal level ask for your help again as you undertake the difficult and wrenching task of preparing another deficit reduction plan,” he continued

Tolland Town Council Chairman Frederick Daniels said Friday afternoon that he agrees with Finley’s letter, particularly the point that if the governor reduces municipal aid now, after local budgets have been adopted, it could create chaos.

“To go back now and revamp the budgets in light of this would be really devastating,” Daniels said.

During a meeting last week with CCM leaders and members, however, Malloy warned town officials that if union rank and file members did not accept the agreement the governor forged with union leaders all aspects of the budget, including aid to municipalities, would have to be revisited in order to close a $1.6 billion state budget shortfall.

State budget chief, Benjamin Barnes, has already sent a letter to the state department heads telling them to anticipate starting the next fiscal year without an agreement, according to the CT Mirror.

With the union all but dead as members of some of the state’s biggest unions have rejected the agreement and many local officials are bracing for what is to come.

Friday afternoon, Tolland Town Council Chairman Frederick Daniels said he assumes that the unions left to vote on the contract changes will not ratify the agreement, particularly in light of the ASFCME rejection.

According to the CT Mirror, union spokesman Larry Dorman said he hopes that Malloy does not act on the anticipated 7,500 state employee layoffs until after the union leadership is able to meet on Monday.

When asked by the CT Mirror about the possibility of a re-vote by the unions, Dorman told the online news site reporter that he “can’t see that happening right now.”

In anticipation of the death of the tentative state union agreement, Town Manager Steven J. Werbner sent a letter to town department heads Friday informing them that effective immediately there is a hiring and spending freeze, Daniels said.

“As far as the town goes, we know we’re going to have to do something, this is a first step,” Daniels said, adding that he’s “still hoping that if the unions do reject the contract that the governor will be able to find a way to keep his promise in terms of funding for the towns.”

Daniels said the town council has not discussed the option of sending out a supplemental tax bill to make up at last some of the anticipated lost state revenue from the local taxpayers.

With a special session of the legislature a called for next week, Daniels said officials will contact the local representatives and embark on their own letter writing campaign in an effort to protect municipal aid.

Tolland Superintendent of Schools William Guzman said that nearly every state official understands the effect cutting municipal aid will have on the towns and school systems. He also noted the reduction in state services if 7,500 state positions are eliminated.

For this reason he hopes that something will happen to change what looks to be an imminent change to municipal aid, including the Education Cost Sharing grant, the most significant state grant to several towns, including Tolland.

“At this point we’ll wait and see,” Guzman said. 


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