February 4, 2010

LAWMAKERS RELIEVED AT NO CUT TO TOWN MONEY

By Christine McCluskey, Journal Inquirer

HARTFORD — Several lawmakers said Wednesday that Gov. M. Jodi Rell's preservation of town funding in the 2010-11 budget was a welcome change from two months ago, when she proposed major cuts.

Cutting town aid "wasn't a very good policy proposal from the get-go," Rep. Jason Rojas, D-East Hartford, said.

Rojas and Rep. Henry J. Genga, also a Democrat from East Hartford, said cuts to the amount of money the state gives towns — particularly when some town's tax rolls are decreasing — would add too much to the burden of local property taxpayers.

"I never supported reductions in town aid," Sen. John A. Kissel, R-Enfield, said. "I think the governor understood our concern. We would simply be pushing the towns toward local tax increases."

Two months ago, faced with a budget shortfall of roughly $300 million, Rell, a Republican, suggested cities and towns help bear the burden and forfeit $84 million in promised state aid.

But then a panel of town leaders Rell had appointed to identify areas that could absorb the hit balked at the task, and the Democrat-led General Assembly refused during a special session in December to approve the cut.

For the coming fiscal year that starts July 1 — despite a projected $450 million budget shortfall — Rell didn't cut town grants. The governor's revised $18.91 billion plan would cut $27.7 million from the preliminary budget but retain $2.78 billion for cities and towns, up nearly $14 million from this fiscal year.

In addition, Rell proposed a new $10 million municipal capital investment fund and unveiled a package of proposed changes to state law designed to ease mandates and reduce costs at the local level.

"Nobody likes to cut municipal aid," the governor's budget director, Robert L. Genuario, said.

He added that besides sensitivity to municipal officials' arguments against cutting aid, other factors, such as the increase in federal aid the governor anticipates, contributed to the decision.

"She got the message" in December, Rep. John W. Thompson, D-Manchester, said. "Nobody was for it."

Rep. Edward C. Graziani, D-Ellington, said cuts to town aid simply would have shifted the tax burden onto local taxpayers, and that the state must encourage revenue sharing and regionalization of services.

"There was mutual bipartisan concern that the towns had set budgets that were tight already and could not take further cuts midyear," Rep. Pamela Z. Sawyer, R-Bolton, said.

But cities and towns should be forewarned about how bad the financial picture looks for next year and beyond, Sawyer said.

The failed proposal to cut town aid two months ago also told legislators that they have to look everywhere for savings, Sawyer said. She said the issue of cuts to town aid will return, if not this year, then in the 2011-12 budget cycle.

While Rell put off cuts to town aid, "the next governor will not have that luxury," Sawyer said.

Democrat Dannel P. Malloy, a former mayor of Stamford and one of several Democrats exploring a 2010 gubernatorial bid, contended Rell didn't do enough to preserve aid to municipalities.

Malloy said that while Rell talked about mandate relief, she also cut funds for towns to transport students to nonpublic schools. Rell cut $400,000 from the $4 million for nonpublic school transportation, to $3.6 million. It was one of two small reductions in town aid funds that she made; the other was a $4.4 million cut from a grant for machinery.

Simsbury First Selectwoman Mary A. Glassman, another Democrat who may run for governor, also argued town aid shouldn't be reduced at this time.

But Glassman added that the governor's flip-flop on town aid over the past three months shows Rell's top concern remains preserving her popularity.

"The people of this state are not looking for more politics," Glassman said. "They are looking for bold and decisive action."