Update: Malloy's Budget to Maintain Town Funding

Gov. Malloy has decided against cutting additional aid to towns and cities to balance the state's budget, but will instead target more state employees for layoffs, according to the Courant's Capitol Watch.

“Their decision recognizes that cuts in municipal aid would decimate vital program and trigger property tax increases or layoffs. We understand the difficult budget challenges facing the Governor and lawmakers and sincerely thank them for once again protecting our towns and cities,” said Bart Russell, Executive Director of Connecticut Council of Small Towns (COST). “Connecticut's families, property taxpayers, and municipal officials can all breathe a little easier now.”

The General Assembly, which held a special session Thursday, has given Malloy two weeks to come up with a revised budget plan to close a $1.6 billion budget gap, particularly in light of state employees failing to ratify a concession package that would helped.

Malloy also has been given expanded authority to reduce budget line items, from a maximum of 5-percent to now up to 10-percent, Whatever plan Malloy prepares will then return to appropriations committees for review, with a vote in the General Assembly expected before the end of August, the lawmaker added.

Newtown Patch editor  contributed to this report.

Original Story

Killingworth, Durham and Middlefield stand to lose a combined $175,301 under Gov. Dannel P. Malloy's latest plan to close a $1.6 billion budget gap, according to the Connecticut Conference of Municipalities.

"The proposed cuts include a 50% cut in Town Aid Road grants (TAR)," a letter from CCM sent to state legislators on Tuesday stated. " The proposed TAR cut comes on the heels of one of CT's worst winters that decimated town snow-removal budgets."

Killingworth, which has 72 miles of paved town roads according to a previous report, stands to lose a total of $69,026 TAR funds.

The cuts would reduce TAR funding in Durham by $56,716 and $49,559 in Middlefeld.

Gov. Malloy's plan also includes cuts to PILOT (payments in lieu of taxes) State Property. Killingworth would lose an additional $5,496 under the plan, while Durham ($925) and Middlefield ($471) would be less impacted.

"Any reduction in state funding is a concern for Durham. We will look to reduce our spending to compensate for any amount of revenue loss," said Maryjane Malavasi, Durham's Finance Director.

An additional $30 million in cuts to cities and towns could not be accounted for, according to CCM.

"Virtually every town and city has adopted their FY12 budget, set a tax rate, and sent tax bills out in the mail.  Hometown CT relied on the municipal aid in the Adopted State Budget," the letter said.

The Connecticut Council of Small Towns is also urging lawmakers to reject cuts to municipal aid.

“Towns do not have any way to fill budget holes resulting from last minute cuts in municipal aid except through property tax increases, municipal employee layoffs or critical program cuts.  Each of these options would undermine the quality of life and the cost of living in Connecticut’s small towns,” said Elizabeth Gara, COST Public Policy Director. 

Lawmakers will return to Hartford today to begin a special session on crafting a new budget plan.