Senate Leadership

President Pro Tempore Donald Williams & Senate Majority Leader Martin Looney

April 2, 2007

Williams and Looney, Mayors Perez and DeStefano Highly Critical of Governor’s Property Tax Cap

Arbitrary cap would devastate local services

photo of Senator Williams

Senator Williams discusses the impact Governor Rell’s proposed local property tax cap will have on the state’s cities and towns. (April 2, 2007)

State Senate President Pro Tempore Donald E. Williams, Jr. and state Senate Majority Leader Martin M. Looney were joined today by Hartford Mayor Eddie A. Perez and New Haven Mayor John DeStefano Jr. in criticizing Governor M. Jodi Rell's proposed cap on local property taxes.

The leaders said such a cap would have a devastating effect on local services and possibly endanger public safety.

"We need only look to our neighbors to the north to realize what this cap could do to public safety," Sen. Williams said. "When Massachusetts passed a property tax cap, the result was the closing of fire stations and cutting of other essential services. I don't think we want that here in Connecticut."

"This is clearly not a well-thought-out plan," Sen. Looney said. "It could wreak havoc with town charters and put cities and towns in a bind by not acknowledging that that the costs of energy and health care cannot be controlled by an artificial cap that would result in disastrous cuts in other budgeted services."

"The governor's proposal is fiscally irresponsible and would prevent communities such as Hartford from raising revenues necessary to maintain sound financial footing," Mayor Perez said. "Hartford has worked hard to keep government growth minimal while fully funding its pension and other long-term obligations. This proposal is a political gimmick that will harm every community in the state. The governor should sit down with legislative leaders if she truly wants property tax reform and work for a genuine solution."

Mayor DeStefano said New Haven would be hit particularly hard. "With nearly half of our grand list tax-exempt, New Haven will have virtually no ability to raise revenue, devastating our ability to provide education and public safety services. Families and children will be gravely harmed," he said.

Last week, Gov. Rell unveiled a surprise plan in which she proposes capping all local property tax hikes at 3 percent, except in four instances: any grand list growth over 1.5 percent; debt on capital improvements; by an override of the governing body and a simple majority of voters; or by an emergency declaration.

The governor's tax cap proposal is linked to her proposed 2008-2009 biennial budget, which includes a 10 percent across-the-board income tax hike and a freezing of most state grants such as Payments In Lieu of Taxes (PILOT), Town Aid for Roads (TAR), and Mashantucket Pequot Funds. The governor's proposed budget also calls for substantial increases in the state's Education Cost Sharing (ECS) grant, though it does not require cities and towns to spend that money entirely on education.

 

Senator Williams’
Press Aide

Larry Cook
860-240-8609

Lawrence.Cook@cga.ct.gov

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Senator Looney’s
Press Aide

Larry Cook
860-240-8609

Lawrence.Cook@cga.ct.gov

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