Federation of Connecticut Taxpayer Organizations

As we enter this budget season, again, Donna McCalla of Hebron Dollars & Sense is doing an outstanding job on compiling information on tax and budget proposals and adoptions by the towns and cities throughout Connecticut.� Please refer to her comments below and the attachment which should be opened in Excel.� If you cannot open, contact me at fctopresident@ctact.org and I will send it to you.

Also, a special thank you to Jim Mathias and Peter Arcidiacono for inviting me to participate in their Taxpayers Meeting last week.� They and their tax group, Common Sense of East Hampton are doing an outstanding job.� Keep up the good work, Jim and Pete.�

WELCOME TO THE 28th EDITION OF

TAX TALK

Your update on what others are thinking, doing, and planning
Send your comments or questions to me, and
I will include in next week's publication.

Please note that TAX TALK is now on our Website

�Susan Kniep, fctopresident@ctact.org

Subject:� Susan Kniep to Partcipate in Forum Sponsored by New London Day on Sprawl and Property Tax Reform

April 20, 2004

The New London Day invited me to participate in a Panel Discussion on the issue of Sprawl and Property Tax Reform on April 27 at 2 PM at the Public Library in New London at the corner of Huntington and State Streets.� The Day also requested that I provide them with an 800+ word op ed piece on this issue which is scheduled to appear in their May 9 edition.� I will post on our website ctact.org following this date.� �

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Pat Spring, SpringFrnk@aol.com

Tax Group:� Taxpayers for Berlin

Subject:� Taxpayers for Berlin to Oppose Budget Increase

April 20, 2004

Hi Sue, Just wanted you to know that we had a Taxpayers for Berlin meeting last Thursday, the 15th, We voted to oppose the tax increase of 2.13 mills in the upcoming referendum on April 27th. Too much. After the near riot we had last year with revaluation and the Board of Ed. pulling all sorts of stunts, we lost by 23 votes, so we hope to win this year. Will be making phone calls to urge a "no" vote. Pat Spring--Taxpayers for Berlin

***********************************************************************Donna McCalla, CTJodi146@al.com
Tax Group: Hebron Dollars and Sense
Website: www.HebronDollarsandSense.com
Subject: Connecticut Municipal Tax Increase Comparisons for 2004
April 21, 2004

Congratulations, Thank You, Super Job to Donna McCalla who puts her time and effort into compiling valuable information on Town and Board of Education Budgets throughout the State. Please refer to Donna's comments below and the attachment which should be opened in excel. Also, if you have information on your town, you may wish to communicate with Donna directly at the email address CTJodi146@al.com.� �Susan Kniep

A Message from Donna:

Hello, all. I am attaching the first version of the spreadsheet comparing proposed Connecticut municipal tax increases for FY 2004-05. At this point, I have about half of the towns reporting; this is actually better than the data I had at this time last year.

As you will note, the spreadsheet is different from last year. I include a column for the FY 2003-04 final budget numbers, for easier comparison. Also, in the Notes section, I am trying to document actual mill rates in order to expand the data base for next year. Finally, I have included an additional worksheet showing last year's results, including all multiple referendums, also for comparative purposes.

Note that the statewide average, for the 90 reporting towns, of proposed tax increases is 6.19%. The numbers from Thompson and Preston are not sustainable, and I regressed them, for a new average of 5.78% average proposed tax increase statewide. To add some validity, I also regressed the top five proposed increases and the bottom five proposed increases, resulting in a statewide projected average tax increase of 5.76%. To further confirm, I regressed the top ten proposed increases and the bottom 10 proposed increases, resulting in a statewide projected average tax increase of 5.69%. At this point, I think that the data ultimately supports a projected statewide average tax increase around the 5.75% level. What could that mean? Historically, towns that propose a lower-than-statewide average have a far better chance of passage, although fiscal pressures are growing, especially in personal (consumer) debt, job out-migration, continued erosion of state aid to cities and towns, and those pesky unfunded mandates at the state and federal levels that are plaguing all Connecticut towns.

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The 5.75% projected average state tax increase is much higher than last year's average statewide tax increase of 4.92%, and signals a variety of factors, most importantly reduction in state funding.

I have prepared the first edition of the CT Budget Watch List, which a few weeks ago was comprised of 48 towns. Using this new data, I will reassess the Watch List and issue the first edition this weekend. I expect the number of towns on the Watch List to drop to about 30-35, using the 5.75% projected state number. Also, this is probably the most important week in terms of final decisions by funding authorities, so a lot may change between now and Sunday.

Lastly, I am finalizing the lastest CT Education Budgets Analysis, which I hope to release in a couple of days. As funding authorities finalize spending levels, you will see that the statewide average of education funding has changed from the 3.5% recommended increase in March to an average 4.54% approved increase in April. While some towns are facing challenges of "VNTL campaigns" ("Vote No, Too Low"), historically VNTL campaigns always fail. It will be interesting to follow towns in which residents pursue a VNTL strategy.

Any questions (or updates or corrections to the attached spreadsheet), please contact me at this email address. Thanks, Donna

To date, we have 7 passed budgets and 1 defeated budget (Monroe). Notice that the passed budgets are by and large equally divided between quite low tax increases and increases that follow the statewide average to date.

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Len Chaponis, chaponis2@yahoo.com

Tax Group:� CPOA, New Britain

Subject:� Hartford�s Mayor Wants Homestead Exemption or

Will Look to Unions in Budget Formation

April 16, 2004

To Susan Kniep, President of FCTO: Hartford's Mayor Eddie A. Perez has stated in the Hartford Courant that the sacred cows of education, fire and police would be on the table -if Perez did not win legislative authorization to ease the homeowners tax hike in Hartford. An Act concerning a Homestead Exemption and Differential Property Tax Bill.� Printed below is Tax Relief -The "Homestead Exemption"
Bill for the City of Hartford, CT.

REPORT ON BILLS FAVORABLY REPORTED BY COMMITTEE
COMMITTEE: Finance, Revenue and Bonding Committee

File No.: Bill No. SB-598; PH Date: 3/15/2004; Action/Date: JFS 3/29/04
Reference Change: TITLE OF BILL: NEW TITLE AND CONTENT
AN ACT CONCERNING A HOMESTEAD EXEMPTION AND
DIFFERENTIAL PROPERTY TAX ON VACANT LAND.
SPONSORS OF BILL: FINANCE,REVENUE AND BONDING COMMITTEE, SENATOR FONFARA;

REASONS FOR BILL: The substitute bill would allow municipalities with
the vote of their legislative body to establish a residential property tax relief program that would be funded by a tax surcharge on other types of property.
This bill as amended would exempt up to half the assessed value, up to $150,000, on owner-occupied housing with up to 3 units. A surcharge of up to twice
the property tax is placed on vacant land that has no buildings or structures except for public parks or land designated as open space, forest land, or farmland under Chapter 203 of C.G.S.

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Susan Kniep, fctopresident@ctact.org

Subject:� Editorial Writer for New Jersey Newspaper Looking for Information

April 20, 2004

I received the following request.� Prior to my responding please email me your comments.�� Susan

Hello,� I'm an editorial writer for The Star-Ledger in Newark, N.J., where
we are trying to cut property taxes. I wondered if you could give me some
history on how Connecticut abolished county government, and how much money
that might have saved. We are considering doing the same thing here.
Thank you,�
Paul Wyckoff, �PWYCKOFF@STARLEDGER.COM

The Star-Ledger
Newark, N.J. 07102
973-392-4159

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