Selectmen grumble about the dearth of state funds

TORRINGTON — Municipal leaders and state legislators expressed their frustrations with the budget situation at a special meeting of the Northwestern Connecticut Council of Governments (COG) and the Litchfield Hills Council of Elected Officials  (LHCO)Thursday, Jan. 21, at the University of Connecticut’s Torrington campus.

The two organizations are made up of the first selectmen from Litchfield County towns.

Barbara Henry, first selectman of Roxbury and chairman of the COG, set the tone in her introductory remarks: “If you’re tired of hearing the same old thing, we’re tired of saying it.�

The two organizations presented a handout of legislative priorities for the 2010 session. The top priority was maintaining current levels of municipal aid — Education Cost Sharing, the Town Aid Road program and other basic grants, funding for regional planning organizations, extending (or making permanent) the municipal conveyance tax, and, should cuts in aid to towns be necessary, that the cuts be distributed evenly across the state’s 169 towns and cities.

Henry continued: “Hartford is not addressing the budget or the issues. They ask us for bold ideas — we think a bold idea would be to pass these things.�

And she alluded to the upset win of Republican Scott Brown to the U.S. Senate in Massachusetts last week. Speaking to the assembled state legislators — senators Andrew Roraback (R-30) and Kevin Witkos (R-8), and representatives Craig Miner (R-66), Roberta Willis (D-64), Mary Ann Carson (R-108) and John Rigby (R-63), Henry cautioned “The seat you’re sitting in is the people’s seat. We deserve some action.�

Don’t look for revenues

Leo Paul, chairman of the Litchfield Hills group and first selectman of Litchfield, complained that the two councils identify “the same priorities year in and year out. Nothing gets done.� He suggested emphasizing one or two items, rather than a lengthy list, and then continued:

“If you’re a family with two incomes and one stops, you don’t increase spending.

“[The legislature] needs to take a better look at structuring the budget. Maybe instead of looking for new revenue, reduce spending.

“Every time we mention a problem, the response is ‘We need new revenue.’�

Bob Valentine, first selectman of Goshen, said Education Cost Sharing (ECS) grants “are crucial for balancing local budgets. Taxes in my town will certainly increase if ECS is cut.�

Towns pay for their schools with local property taxes, but the state awards additional funds, called Education Cost Sharing (ECS) grants, to some towns to cover their education costs.

First Selectman Wade Cole of Hartland, speaking about Town Aid Road and other grants, said the amounts have not even kept up with inflation and noted that when Town Aid Road began in 1967 the amount allocated was $30 million —  the same amount under discussion now.

Valentine also had something to say about spreading the pain around evenly.

“If the legislature decides to reduce municipal grants, it should be equal. If it’s 3 percent then it should be 3 percent for everybody, not 10 percent for Goshen and 1 percent for Hartford. I hope we are not penalized for being responsible. I hope that  other municipalities, who are not as diligent, don’t get to keep more of their grant. I hope it’s not disproportionate, like ECS.â€�

Conveyance tax

And Henry put the legislators on the spot about the municipal conveyance tax.

Connecticut law requires a person who sells real property for $ 2,000 or more to pay a real estate conveyance tax when he conveys the property to the buyer. The tax has two parts: a state tax and a municipal tax.

The state tax rate is either .5 percent or 1 percent of the sale price, depending on the type of property and how much it sells for. The town tax rate is either .25 percent or .5 percent, depending on where the property is located. In Northwest Corner towns, the municipal share is usually .25 percent.

“The tax was promised to ‘sunset’ [or phased out]in 2008. It’s now 2010. If you want to sunset something, sunset mandates. The .25 percent should remain as a component of state assistance. Will the legislators support this?�

Roraback said he would support extending the tax, adding that a proposal allowing towns to keep the tax in perpetuity failed in past sessions.

Miner said the tax was unlikely to be a “stand-alone bill, so to promise to support it is difficult.�

Witkos said he supported keeping the tax in place, as did Willis. Carson said she hadn’t supported it in the past, believing the issue was fairer funding, not necessarily through the conveyance tax.

As an example of the importance of the municipal conveyance tax to towns [statistics obtained from Salisbury comptroller Joe Cleaveland] show that the town realized $171,000 in conveyance tax revenues in the budget year 2006-07, $162,000 in 2007-08, $80,000 in 2008-09 and through November 2009, $42,000. Conveyance tax revenues go into the town’s general fund, and Salisbury First Selectman Curtis Rand said even the reduced revenue expected this year would be difficult to find elsewhere.

Sympathy but ...

The first selectmen moved quickly through their second tier of priorities, items like increasingly complex — and unfunded — mandates for the training of emergency services volunteers. The angst was apparent.

The legislators expressed their frustrations as well.

“We’re simpatico with these things,� said Roraback. “We don’t get anywhere with them either.

And Willis added, “We’ve heard you loud and clear on ECS.�

Miner said, “We’re in the midst of a catastrophe. We have spent every nickel in our savings account. Not a single revenue sector is performing well.

“Businesses have no incentives to hire people — or to keep them. I can’t spend a lot of time on emergency medical services mandates when I’m trying to figure out where the next nickel is coming from.�

He added that with the state facing projected budget deficits of  $ 3 billion per year in the next biennial budget, some grant cuts seem inevitable.

As for the present, he said, “I think we’ll borrow a billion. There is no stomach for a tax hike. We’re doing the best we can.�

Witkos urged the town leaders to step up their lobbying efforts. “To be brutally honest, what you’re doing is not cutting it.

“The League of Conservation Voters keeps a scorecard. Why not chambers of commerce, or the COGs? That’s the only way you’re going to get pressure on other state legislators, not just those from the Northwest Corner.�

Sharon First Selectman Bob Loucks took a slightly different tack when he said, “Stop spending. Stop promising. Let us live within our budgets for a while.�

Roraback got the last word: “I wish the people we have here were running the state. If we brought the Northwest Corner ethos to Hartford, we’d be a better state.�

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