Schools are closed across Connecticut and many municipal buildings and offices are running on reduced schedules in response to the COVID-19 public health crisis, but towns may not see much in the way of cost-savings from those closures. Harwinton First Selectman Michael Criss says his town has closed most municipal ...
Governor Dannel Malloy released his executive order allocating state funds to towns and cities on Friday, zeroing out education funds for 85 towns across Connecticut. The order also eliminated payment-in-lieu-of-taxes for hospitals, colleges and state owned property, and casino revenue grants.
Despite being rejected by the state appropriations committee and denounced by municipal leaders across the state, Gov. Dannel Malloy’s plan to transfer one-third of teacher pension costs onto towns and cities is still being considered during budget negotiations. However, during a June 22 press conference, House Speaker Joe Aresimowicz, D-Berlin, and House Majority Leader Matthew Ritter, D-Hartford, floated the idea of raising the state sales tax to 6.99 percent and using the increased funds to help municipalities pay for teacher pensions.
Facing a $3 billion deficit over the next two years, Malloy appears poised to propose a budget that achieves balance without significantly raising state taxes. At the same time, Malloy's changes to education funding could result in property tax increases in some towns. Malloy's proposal has three main components: changing the Education Cost Sharing formula, creating a separate fund for special education and changing the minimum budget requirement for towns.
Gov. Dannel Malloy proposed a new way to fund Connecticut teacher pensions Friday with towns and cities contributing one third of the costs or roughly $407 million. "At a time when state government is making difficult cuts to services, we can no longer afford to exclude how we pay for teacher pensions from the conversations,” Malloy said in a statement.