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State - Budget
Malloy contingency plan hits aid to towns

Malloy contingency plan hits aid to towns

 

By Susan Haigh
Associated Press

Published: Wednesday, April 13, 2011 9:08 AM EDT

 

HARTFORD — Cities and towns would lose one-third of their state aid under a contingency plan Gov. Dannel P. Malloy has requested in case there’s no agreement on $1 billion in union savings and concessions to help balance his budget.

The governor’s office on Tuesday released a town-by-town breakdown of how a $1 billion cut in state aid to municipalities would be distributed. For towns in this area, the cuts would be:

Andover: $897,030.

Bolton: $1.17 million.

 

Coventry: $3.35 million.

East Hartford: $15.86 million.

• East Windsor: $2.13 million.

• Ellington: $3.58 million.

Enfield: $11.34 million.

Glastonbury: $2.45 million.

Hebron: $2.56 million.

Manchester: $12.26 million.

• Somers: $3.16 million.

South Windsor: $4.82 million.

Stafford: $3.86 million.

• Suffield: $4.22 million.

• Tolland: $4.05 million.

Union: $140,144.

Vernon: $6.92 million.

• Willington: $1.43 million.

Windsor: $4.43 million.

Windsor Locks: $3.42 million.

It’s the latest in a series of contingency-related steps being taken by Malloy’s office as time runs out for a deal with state employee unions. Malloy hopes to reach a budget with the General Assembly by May 6. Closed-door talks are continuing between the administration and the State Employees Bargaining Agent Coalition, the group that represents 13 unions with more than 40,000 workers.

“There are only so many places where you can go to get large sums of money to get to $1 billion, if that number is not reached in discussions with labor,” said Roy Occhiogrosso, the governor’s senior adviser. “Municipal aid is certainly one of those places. It represents a large portion of the budget.”

Occhiogrosso said the full $1 billion wouldn’t come entirely from municipal aid if talks with labor fall apart. “There are different scenarios being looked at — municipal aid, reduction in state agencies — several different scenarios,” he said. “The governor’s been pretty clear that one thing will not happen. Taxes will not rise beyond what he has already proposed. … Everything else is on the table.”

Malloy is seeking $1.5 billion in wide-ranging tax hikes as well as $758 million in spending reductions to help bridge a budget deficit for the fiscal year beginning July 1. The deficit is estimated at $3.3 billion to $3.5 billion.

Occhiogrosso said releasing the town-by-town breakdown of how a $1 billion cut in local aid would be distributed shows how devastating such a reduction would be on local municipalities and property taxpayers.

The municipal aid contingency plan came as a surprise to Jim Finley, executive director of the Connecticut Conference of Municipalities. Malloy, a former mayor of Stamford, made it a point in his two-year, $40 billion budget to protect much of the state aid programs to cities and towns, saying he didn’t want to pressure local leaders into raising local property taxes.

“We hope this contingency is never implemented,” said Finley. “A billion-dollar cut in municipal aid will result in massive municipal employee and teacher layoffs across the state.”

Last week, Malloy’s budget director asked agency commissioners for ways to cut their spending by 10 percent beyond the governor’s budget proposal. Also, the administration sent a memo to agencies about procedures for possible layoffs.

Occhiogrosso said the administration should know “fairly soon” how many layoffs might be necessary. Malloy has said that thousands of layoffs would be needed if the labor savings aren’t realized, but added that he remains hopeful a deal can be reached.

This article contains Journal Inquirer reporting.