State lawmakers warned municipal leaders this week not to rely on Gov. M. Jodi Rell’s plan to infuse $2.9 billion in state education funding to cities and towns over the next five years.
Some predicted the Republican’s massive education spending proposal, unveiled last month, will be supplanted by a modified version by the time the General Assembly adjourns in June.
“I think it’s got a long way to go and I would strongly urge you to think very carefully before you use the governor’s figures, particularly in regard to education,” said Rep. Denise Merrill, D-Mansfield, co-chairman of the Appropriations Committee.
Municipalities across Connecticut are in the middle of putting together their new budgets for the next fiscal year. Most local tax and spending plans are expected to be passed before the legislature adjourns on June 6.
Herb Rosenthal, the Newtown first selectman and president of the Connecticut Conference of Municipalities, said his organization is recommending that member municipalities use Rell’s figures for state education aid when crafting their budgets. He said they’re also recommending that cities and towns ignore Rell’s proposed $60 million in reductions to some municipal aid programs, such as payments for tax-exempt property.
“We’re certainly hopeful the level of (education) funding that is recommended by the governor will be there and the other cuts will be restored,” Rosenthal told members of the Appropriations Committee during an informational hearing. “We want it both ways I guess.”
Passing local budgets that include Rell’s state aid figures could pressure legislators as they try to reach a bipartisan deal on a new, two-year state budget. But there were indications at Tuesday’s hearing that Democrats and Republicans are uneasy about supporting Rell’s initiative as it stands.
“Assume that maybe all the good stuff won’t happen and maybe some of the bad stuff will happen,” said committee member Sen. David Cappiello, R-Danbury.
Rell stood by her initiative on Tuesday.
“Legislators can keep talking. Gov. Rell has said enough with the talk. Towns have been clamoring for this education aid for decades, and the governor has delivered in an unprecedented fashion,” said Adam Liegeot, a Rell spokesman. “The fact that legislators are warning towns not to bet on this aid speaks volumes about their commitment to education.”
Rell has called her education initiative the largest investment in public education in the state’s history. To help pay for it, she wants to increase the state income tax as much as half a percent over two years. The highest tax rate would rise from 5 percent to 5.5 percent by the 2009 fiscal year.
The largest cities would receive the most of the new education funding over the five-year period. Bridgeport would get an extra $85.7 million, while Waterbury would receive $72.6 million, New Haven $50.3 million and Hartford $49.6 million.
While municipal leaders said they applaud Rell’s attention to public education, some voiced concern about how some smaller towns appear to be penalized under her proposal. Washington First Selectman Richard Sears said his town of 3,500 people receives about $432,000 in state aid. Under Rell’s plan, that would increase by $70,000, but his residents would have to pay $1.1 million more in higher income taxes.
“The funding scheme proposed by the governor seems patently unfair to my town and the towns in the northwest corner,” he said. “We certainly have residents who are extremely wealthy by most measures, but they are in the extreme minority.”
Merrill said she and other lawmakers worry how Rell’s plan distributes the education money. Also, she said there is concern about whether it will lower local property taxes.
“What we want basically is the best way to provide education funding and property tax relief,” Merrill said. “Many of us are not convinced this is the best way to go about things.”
