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Tax Talk
From: Susan Kniep, President

From:  Susan Kniep,  President
The Federation of Connecticut Taxpayer Organizations, Inc.
Website:  http://ctact.org/
email:  fctopresident@ctact.org

860-524-6501

May 16, 2005

 

 

Review Previous Tax Talk Issues on our Website at  http://ctact.org/

 

 

WELCOME TO THE 50th EDITION OF 

 

TAX TALK

 

 

NEWS HIGHLIGHT!

 


HOUSE BILL 6447:  Although myself and others attended meetings at the Capitol and encouraged our State Reps to approve a change to Binding Arbitration (Bill 6447) which would have safeguarded 100% of the undesignated fund balances of municipalities from being factored into union negotiations during arbitration, (ultimately watered down to safeguarding 6% of municipal budgets), the Labor Committee did what it does best, protected the unions and turned it back on the taxpayers.  This Bill, even in its watered down version, was rejected as Mike informed us on May 3 (see below).    Susan

 

Mike Guarco, BudgetGuru06035@aol.com

Finance Board Chairman, Granby

Subject:  HOUSE BILL 6447 DIES IN LABOR COMMITTEE 

Date:  May 3, 2005

AN ACT CONCERNING FACTORS CONSIDERED BY AN ARBITRATION PANEL IN MUNICIPAL BINDING ARBITRATION -To require arbitration panels to disregard the undesignated general fund balance of a municipal employer in making binding arbitration awards.

 

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Donna McCalla, ctjodi@sbcglobal.net

Subject:  CT Tax Increase Comparison Worksheet Update

May 16, 2005

Hi, all.  There have been some significant changes/updates to the CT Tax Increase Comparisons Worksheet.  There are now 30 defeated budgets, 62 passed budgets, and one budget (Ashford) that actually resulted in a tie vote, and will go back for a revote.  Statistically, this 2-1 margin, at this point in the budget season, is historical.  There are 44 towns for which I have no information as yet, but quite a few of these 44 towns involve Round Two or Round Four (in the case of Monroe) new budget numbers.  The only Round Three vote taking place this week is in Plainville, but Town Council is coming in with a 3.5% increase and by charter, there will be no Round Four in Plainville.    Of the 30 defeated budgets, the average proposed (and defeated) tax increase was 6.25%.  Of the 62 passed budgets, the average approved tax increase is currently 4.44%.  Interestingly, of the 62 passed budgets, 23 were passed by funding authorities in which residents do not directly vote (i.e., a Board of Aldermen, a Board of Apportionment and Taxation, an RTM, a Town Council, etc.)  In addition, 17 of the passed budgets have been at Town Meeting, in which history has already proven that budgets pass almost automatically (Seymour being the exception.)    Of the 17 regional school districts, 9 have passed, and 8 have been defeated, which is also historically significant.  The average budget increase for the 9 districts that have passed budgets is 4.94%.  The average budget increase for the 8 districts that have failed is 7.11%.  This average defeated budget number is significantly skewed by Region 8’s defeated 12.3% budget increase.  If Region 8 were left out of the equation, the average defeated regional budget is 6.37%, which is right on the money with the average defeated municipal budget number of 6.25%.

A request was received to eliminate the blank columns, in order to make it easier to run tables on the data.  Done!  I have always used the blank columns more as a visual separation of the data, but this request made a lot of sense.  I have tried to keep the FY 2005-06 Education Budget increases tab up to date as best I can.  The “Notes” column may be useful to you.  The other issue that has come to the forefront in the past couple of weeks is that of bifurcated budgets.  The March 22, 2004 decision by the CT Supreme Court in Board of Education v. Borough of Naugatuck legally allows for bifurcated budgets in those towns with charter provisions for bifurcated votes.  I am already seeing charter proposals in two western Connecticut towns to move forward with bifurcation.  It is certainly a “cleaner” process, and gives a great deal of information to funding authorities on how to proceed in the case of a defeated budget.  This is especially true in participating towns with regional schools.    Finally, some of you have contacted me regarding "tax increases" versus "spending increases."  This is absolutely correct; I am reporting the proposed tax increase, and not the spending increase.  There is a big difference, as we all know.  Some towns have enough reserve built up to "draw down" the spending increase on a temporary basis; others do not.  I agree that I should be reporting municipal spending increases, and I will try to do that next year.  This year, I have reported Boards of Educations spending increases, and next year hope to add an additional tab for municipal spending increases. It does, however, get complicated because of debt service (and the way various towns handle debt service) and CIP budgets (and the way towns handle capital budgets.)  There are a number of budget votes this week and next week.  I will do my best to get this week’s results out to you this weekend.  History tells us that those towns that are going to pass their budgets will do so by June 15, because of the tax bill mailing issue.  Those that have not passed by June 15 are probably in for the long haul.  Thanks, Donna

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From: Theresa McGrath, Executive Director

Family Alliance for Children in Education

face0203@comcast.net

 

School Choice can happen, even with a Democrat Majority Legislature

ARIZONA ANNOUNCEMENT from Clint Bolick and Matt Ladner

With
the signing of these bills,
Arizona will become the first state
to have both a corporate tax credit and an individual tax credit
program.


Friends,  We are pleased to report that a budget agreement announced today
between Arizona Governor Janet Napolitano and Senate President Ken Bennett and Speaker Jim Weirs includes a $5 million scholarship tax credit for corporations.  The bill allows for maximum scholarships of $4,200 for grades K-8 and $5,500 for 9-12.  Only public school students transferring to private schools are eligible for aid, and 70% of funds must be spent for children with family incomes below 185% of the income limit to qualify for reduced lunches.  The credit will begin in 2006.   In addition, a bill eliminating marriage penalties in tax  credits will raise the maximum amount which can be donated to a  scholarship organization under the individual tax credit program passed in 1997.  Originally, the law allowed for a $500 donation.  In 2000, the maximum allowable credit for a couple was raised to $625 as part of a
referendum.  The new legislation will phase in an increase to the maximum credit allowed for a couple to $1,000.  The governor has announced that she will sign the school choice provisions as a part of the overall budget agreement.  This bill represents a major advancement for school choice in
Arizona, which greatly enhances the current credit while focusing funds on low-income children.  The success of the effort comes as the result of a strong collaborative effort among the Alliance for School Choice and (in no particular order) the Goldwater Institute, the Milton and Rose Friedman Foundation, the Hispanic Council for Reform and
Educational Options, the Arizona Catholic Conference, the Center for
Arizona Policy and the Arizona Free Enterprise Club all played crucial
roles in the passage of this legislation. Signed:  Clint Bolick,
Alliance for School Choice, President and General Counsel; Dr. Matthew Ladner, Alliance for School Choice, Director of State Projects

 

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Also read:   Utah governor snubs 'No Child' requirements; SALT LAKE CITY, Utah (AP) -- Gov. Jon Huntsman signed a measure Monday defying the Bush administration's No Child Left Behind Act despite a warning from the federal education secretary that it could cost $76 million in federal aid.  Continued at this website:  http://www.cnn.com/2005/EDUCATION/05/03/no.child.left.behind.ap/

 

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Jim Mathias, Seecjm@aol.com

East Hampton
Subject: 
East Hampton Budget

May 16, 2005 
East Hampton's budget referendum was defeated by 2 to 1 margin last month.  Using our top/down approach Common Sense opposed the budget believing it to be  $400,000 too high.   Following the defeat the BOF and TC reduced it by $398,000.  We are endorsing the budget for the May 18th referendum.  The main problem in East Hampton is uncontrolled residential growth resulting  in part from failure by officials to update the Plan of Conservation and  Development and no open space purchase plan. Additionally, our out of district  special education costs are 26% above our ERG average spending $1.5 million in out of district tuition.  Jim


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From:  webmaster@hebrondollarsandsense.com

Vote on Hebron Town Budget and CIP budget this Tuesday

Reply to:  owner-hebronupdates@blarneys.securesites.net

May 15, 2005

 

Dollars and Sense has received numerous calls and emails this weekend (and especially today) regarding a number of issues on next Tuesday’s vote.  We’ll try to answer those questions, but it’s a complicated situation.  Continued at the following website:  http://www.hebrondollarsandsense.com/index.php?subaction=showfull&id=1116272655&archive=&start_from=&ucat=8&





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Robert Young, ryoung0@snet.net

Wethersfield Taxpayers Association

Subject:  May 24 Special Referendum

May 15, 2005

Concerned Citizens: On May 24th 2005, there will be a special referendum on two separate citizen sponsored petitions as follows:

Petition 1.
SECTION 101-1.1. THE TOWN OF WETHERSFIELD SHALL NOT INSTALL, CONSTRUCT OR CAUSE TO BE INSTALLED OR CONSTRUCTED, ANY PERMANENT OR TEMPORARY FLOODLIGHT, SPOTLIGHT OR OTHER REFLECTOR-TYPE LIGHTING FOR ILLUMINATION OF SPORTING EVENTS OR OTHER ACTIVITIES ON ANY MUNICIPALLY OWNED PROPERTY’

This proposal is being submitted to the voters pursuant to the settlement of a lawsuit brought by the Wethersfield Taxpayers Association against the Town of Wethersfield.  A YES vote will prohibit the installation or construction of any permanent or temporary floodlight, spotlight or other reflector-type lighting for illumination of sporting events or other activities on any municipally owned property.   This ordinance will not have an impact on any currently existing lights on Town Property.  (NOTE: Town Mgr. Bonnie Therrien stated in writing on Mon. 3 Jan. 2005, "There is an agreement that any lights now in place will stay as is."  However she and The Council declined to share this information with the community at large in the Official Explanatory Text being sent to town residents.)

A NO vote means that the existing Chapter 101, Lighting, of the Code of Wethersfield, will remain as is. 

                                    ********************* 

 Petition 2. (This has been referred to as the John Miller Petition)
Pursuant to Section 312 of the Charter of the Town of
Wethersfield, the undersigned qualified electors of said Town of Wethersfield, petition the Town Council to adopt the following ordinance:Pursuant to Connecticut General Statutes $8-2, municipal property shall be exempt from regulations prescribed by the Planning and Zoning Commission.  Notwithstanding this exemption, the Town shall voluntarily adhere to regulations of the Planning and Zoning Commission unless the Town Council determines, after a public hearing, that it is in the best interest of the Town for a specific purpose not to adhere to a regulation that conflicts with that purpose”.  For additional information on this important issue Click on the following two links.   Link 1   http://www.q2no.org/maild/q2no-mail-05505-kes.html

Link 2   http://pages.cthome.net/ryoung0/map/lands-at-risk-wtxa-4-6-05.html 

Please remember to vote on May 24, 2005!    Bob Young


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Martin Lyons

Stonington Tax Association

Subject:  Praising Donna McCalla’s Spreadsheet on Property Tax Increases

May 5, 2005

Susan, Donna's spread sheet is great.  Please tell her that Stonington residents defeated the referendum on 5/4.  The next referendum is set for 5/23.  Martin

 

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Rocky Hill Council Backs Budget With No Tax Increase
Spending
Climbs By 5 Percent
By ANN MARIE SOMMA , Courant Staff Writer

May 10 2005 ROCKY HILL -- The town council on Monday approved a $48.5 million budget for 2005-06 that will not include an increase in the tax rate.

The council voted 8-1 to approve the budget, which calls for a 5 percent increase in spending for the fiscal year. The budget leaves the tax rate at 25.8 mills.

The budget includes $22.8 million for town expenditures, and $23 million for the board of education.

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From the Yankee Institute for Public Policy
Philip Gressel Center for Tax and Budget Policy
May 2, 2005

 

To download a copy of the Fiscal Focus "Connecticut's Tax Burden: An Overview," visit the Yankee Institute's website at www.yankeeinstitute.org. D. Dowd Muska can be contacted at (860) 729-1262 and dowd@yankeeinstitute.org.

 

Tax Freedom Day Arrives -- Finally
Think Tank Comments on State's Immense Tax Burden, Issues New Guide to
Connecticut Taxation

 

Hartford, May 2, 2005 -- On the eve of Connecticut's Tax Freedom Day -- the date on which the Tax Foundation estimates state residents stop working for government at the federal, state, and local levels -- D. Dowd Muska, the Yankee Institute's Philip Gressel Fellow for Tax and Budget Policy, offered the following statement:

 

When the Nutmeg State's taxpayers head off to work tomorrow, they'll finally start earning income that they can keep for themselves. Over 120 days into 2005, Connecticut's Tax Freedom Day has finally arrived -- later than it did in the other 49 states.

 

Our state's tax burden is a bipartisan scandal. For decades, elected officials from both major political parties have raised taxes and fees to the point where the Nutmeg State faces the heaviest tax burden in the nation. Politicians in Washington, Hartford, and your home town have consistently chosen to make government bigger and broader, and then passed the bill on to you.

 

The lateness of Tax Freedom Day in Connecticut is not due merely to the confiscatory federal income taxes assessed on Connecticut's high-income earners. The combined state-local tax burden for Connecticut is now the 12th highest in the nation.

 

It's outrageous that Connecticut, a wealthy state where problems such as poverty, crime, and lack of health insurance are all well below national averages, taxes its citizens to support a state budget that in inflation-adjusted, per capita terms has grown by more than 440 percent since 1970.

 

But let's not forget the local level. Connecticut's property taxpayers are burdened by both unfunded state mandates that drive up the cost of municipal government and local officials who constantly search for new ways to boost their towns' budgets.

 

Unjustified school spending, absurd bonding commitments, generous compensation packages to government employees, massive corporate welfare, and outrageous subsidies to the arts are rampant at the state and local level. Until unnecessary spending is curbed -- and unneeded programs and agencies eliminated -- tax freedom in Connecticut will continue to arrive far too late in the year.

 

If Connecticut's economy were booming, our heavy tax burden might be easier to bear. Unfortunately, Connecticut suffers from the worst of both worlds: an unfair tax burden and a sluggish economy.

 

That should come as no surprise. Research consistently shows that high taxes retard economic growth and drive companies and residents into other jurisdictions.

 

Connecticut's tax burden is not the result of evil people, but bad policies based on misguided ideas and assumptions. Happily, there are alternatives to the Nutmeg State's high taxes and stagnant economy.

 

Free-market, pro-growth policies have proven their effectiveness in other states and around the world. It is possible to lower taxes and reduce government spending, while maintaining the necessary and legitimate functions of the public sector. The Yankee Institute exists to document these ideas and reforms, and apply them to the Nutmeg State.

 

Connecticut's hardworking taxpayers deserve fundamental reform of the way governments at the local, state, and federal levels fund their activities. It's a disgrace that our state faces the heaviest tax burden in the nation.

 

Today the Yankee Institute announces the release of its first "Fiscal Focus," a new and easy-to-use tool for taxpayers, elected officials, and members of the media. "Fiscal Focus" is designed to describe, in simple language and numbers, the tax and spending policies that damage economic freedom in Connecticut.

 

To download a copy of the Fiscal Focus "Connecticut's Tax Burden: An Overview," visit the Yankee Institute's website at www.yankeeinstitute.org. D. Dowd Muska can be contacted at (860) 729-1262 and dowd@yankeeinstitute.org.

 

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Bob Green, rgreen619@snet.net

Salem Republican Town Committee

Subject:  Correction on Spreadsheet

May 5, 2005

Sue,  I have corrected Salem's line item on the tax comparison and sent it back to you.  Salem's budget is approved by referendum.  The town meeting is a final look to make changes (no $ additions just reductions) before it goes to referendum.  Bob Green  Chairman, Salem Republican Town Committee, Member, Salem Board of Education

 

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TODAY’S NEWS: A brief summary is offered below.  Understanding that our lives are influenced by world events, FCTO provides interesting news articles on global and national issues.   Is there an interesting article you would like us to include in our next Tax Talk publication?  Send it to fctopresident@ctact.org.

Fire Departments Try Fees To Cover Costs

May 15, 2005, Gregory Seay, Hartford Courant

http://www.courant.com/news/local/hc-firefees.artmay15,0,5383327.story?coll=hc-headlines-local

 

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Scathing report on IRS finally may see daylight

Robert Novak, Sun Times Columnist, 5/5/05

http://www.suntimes.com/output/novak/cst-edt-novak05.html

 

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British memo indicates Bush made intelligence fit Iraq policy
By Warren P. Strobel and John Walcott ,  Knight Ridder Newspapers

http://www.realcities.com/mld/krwashington/news/nation/11574296.htm

 

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Town Gives WFSB Large Tax Break

Station Gets $1.9 Million Incentive Package
May 4, 2005, By ANN MARIE SOMMA, Courant Staff Writer http://www.courant.com/news/local/hc-rocwfsb0504.artmay04,0,3803508.story?coll=hc-headlines-local

 

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Property taxes rising nationwide

By Ron Scherer | Staff writer of The Christian Science Monitor http://search.csmonitor.com/2004/1203/p01s01-usec.htm

 

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Testimony to stay secret: Transcript of Rowland, others on CRRA-Enron deal kept sealed

By Don Michak, Journal Inquirer, May 7, 2005

http://www.zwire.com/site/news.cfm?newsid=14486363&BRD=985&PAG=461&dept_id=161556&rfi=6

 

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