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tax talk
From:

From:

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

860-524-6501

December 13, 2004

 

HAPPY HOLIDAYS!

 

 

 

WELCOME TO THE 40th EDITION OF 

 

 

 

TAX TALK

 

 

Your update on what others are thinking, doing, and planning.  Send your comments or questions to me, at fctopresident@ctact.org  and I will include in next week’s publication.   

Review previous Tax Talk issues on our website at http://www.ctact.org/ 

 

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TODAY’S NEWS: A brief summary is offered below.  FCTO encourages you to read the entire news articles at the websites referenced.

 

December 14, 2004

Medicare Payment Errors Nearly $20 Billion

By MARK SHERMAN, AP

WASHINGTON (Dec. 14) - Medicare wants to cut the rate of questionable payments by more than half, to 4 percent, by 2008, administrator Mark McClellan says. "The main objective here is to pay it right," McClellan said Monday, the day Medicare reported that private companies that process health claims from its beneficiaries made nearly $20 billion in erroneous or questionable payments last year, an error rate of 9.3 percent.  Please find a continuation of this article at the following website:  http://aolsvc.news.aol.com/news/article.adp?id=20041214025809990002

 

 

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The following is a good news  source: http://www.keepmedia.com/Search.do?refinePubTypeID=0&criteria=Economy&x=32&y=1

 

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December 3, 2004

Property taxes rising nationwide

| Staff writer of The Christian Science Monitor

While fuel prices may be starting to skid, there's another expense closer to home that is upsetting many Americans: rising property taxes.   From Madison, Wis., to Bucks County, Pa., the local tax assessor is dipping deeper into homeowners' pockets as real estate prices rise and states share less of their tax revenue with local governments.  Please find a continuation of this article at the following website:  http://www.csmonitor.com/2004/1203/p01s01-usec.html

 

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 Friday December 10, 10:44 AM

Bill Moyer Retiring From TV Journalism claims “we don't have a vigilant, independent press whose interest is the American people."      I offer this article for the many taxpayer groups who believe this is a universal problem which they have experienced in our attempt to receive fair coverage of issues we are involved in.    The complete article is found at the following website:    http://www.miami.com/mld/mercurynews/living/10420849.htm?1c

 

 

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WELCOME, WELCOME, WELCOME

TO THE MEMBERSHIP OF

 

LOWER OUR TAXES

 

I am delighted to announce that Lower our Taxes which is based in New London has just joined The Federation of Connecticut Taxpayer Organizations.  Kudos to this fine group of concerned taxpayers who are astute on the issues and eager to challenge the excessive taxation imposed by local and state governments.  I was honored to be part of their one hour cable show, hosted by Jim Louziotis,  on Friday, December 3.  Jim’s email address is ledgehill@netzero.net and I know Jim and his group will offer many valuable contributions to FCTO.   Welcome aboard!   

 

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CONGRATULATIONS NEWINGTON

 

Congratulations are also extended to Bob Briggaman of Newington who is beginning the formation of a tax group for his area.  Anyone wishing to provide Bob with some insight and encouragement, can email Bob at BriggFam@aol.com.  

 

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Mike Guarco, BudgetGuru06035@aol.com

Board of Finance Chairman, Granby

Subject:  Binding Arbitration

November 28, 2004

(A Message from Susan Kniep: Please read the following.  I have met with Mike and feel confident that working together we will be successful in our attempts to change Binding Arbitration.  I will keep you posted on future developments, and know that you will, in turn, keep your membership informed).    

Susan   We have corresponded a bit before in the spring, and Edie Duncan and I did attend the June meeting.  I am Mike Guarco, and I chair the Board of Finance in Granby. I believe that your next meeting would be June 2005, but we will be seeking your aid prior to that time...as you see below. Your efforts are appreciated, and the need to work together so crucial...the opposing side is strong, pervasive, and well-funded.  Earlier this year a group of Finance chairmen in the Farmington Valley began meeting and soon found that we had the same issues, irrespective of party. The more we talked the more we were perplexed by how the state could continuously be in deficit, by always running an expenditure open buffet, primarily by feeding the unions...locally as well as state employee...at the growing expense of taxpayers. The Democrat leadership on the Hill showed its true colors when, in order to muscle money into the state budget to save the 2800 laid off by Rowland, the legislature reneged on its prior funding of a $1000 property tax assessment exemption for the disabled. That showed they represent the little guy, as long as he belongs to a union...that gives the Deems campaign money. Fed up with the shafting the towns and taxpayers take from Hartford we chose to act. Having seen that the agendas of many of the agencies..CCM,COST,CABE,CRCOG, CREC, et al...were rather similar, I asked the First Selectman and BOE chairman in Granby to join me in requesting a meeting with these group's representatives in order to unify their stances on a short common agenda to present to legislators. We met with them a few times, seeking to hammer out a common platform. We noted that even CABE's agenda calls for repeal or major reform of the farce that the state calls binding arbitration...I think that often they ,as an example, speak softly on that issue, but when we Boards of Finance speak to it, we are seen as anti-education. We discussed the fact that we need to educate folks that its repeal or major reform ARE the pro-ed position...as there is only so much money to go around, and these pro-union mandates are choking local govt and taxpayers to death, just as they are continually having the python effect on state govt...continually in the red, as costs...read that wages and benefits... proceed at higher rates than inflation..than revenues...than taxpayer incomes are increasing. Until the legislature realizes it’s in a management role, and gets its expenditure side of the equation under control, it will never solve its budget problems, and will continue to force unnecessary costs on the towns, and taxpayers.                                                           

In October, our Farmington Valley based Finance chairs group talked of asking for a meeting at the Capitol with our area state reps and senators in January, to address our concerns with them directly. As we flesh out our agenda, and given the apparent deficit position the state expects for FY06 and 07(.what should they expect, having used so much one-time, non-replenish able money to balance FY05)..,while we will press for fulfilling their revenue commitments to towns, it is relief from the mandates that push costs up on towns across the state..pro-union, but anti-services, anti-education, anti-taxpayer...that we will argue for.     We know that when the issues come up for hearings at the Capitol, typically a half dozen of the agency reps go, and a dozen or so elected local officials, to be met by 200 union bodies, and the outcome is readily decided before the first word is uttered. Our goal is then to muster a network of organizations to counterbalance the unions at those critical junctures. We intend to mobilize the agencies to speak as one...we are building a network of Boards of Finance chairs across the state to be a driving force in enlisting the numerous towns to speak out and support these actions that will flatten the curve of govt growth...flattening out tax increases while helping keep and expand program. We too have had enough of the statewide calamity of 5% property tax increases while municipal employment and services actually drop. The time is now....while the state legislature is facing its own deficits..and needs to find ways to control costs...in other words, manage the budget. 

 

Our Farmington Valley based group, originally the 7 towns of Avon, Granby, East Granby, Suffield,  Simsbury, Canton, and Burlington, has now picked up Hartland, East Windsor, Windsor Locks, and New Britain - 11 of the 13 communities with a Board of Finance in Hartford County...plus Barkhamsted and New Hartford  just along the border in Litchfield County. One of those passed word to the Norfolk chair, who we welcomed as well. We are working with the Eastern CT Regional Finance Group...Finance chairs and a couple of First Selectmen in towns without a BOF..to merge our missions...and I am participating in the genesis of another group around  Waterbury...reaching out into southern Litchfield, upper Fairfield, and New Haven Counties. The chairmen of the 3 boards - Finance, Education, and Selectmen - in Granby and East Granby are drafting a letter - signed by all 6 of us - to all the other 167 communities seeking their participation in this effort. To some degree BOF-led, its presentation will be as common interest...across the boards, across the parties, and across the state...so that when the call goes out, we can muster a couple or few hundred souls to appear when needed at the Capitol, and meanwhile lobby and wear down the legislators beholden to the unions. They need to know their  continued support for these mandates are nothing less than anti-education, anti- taxpayer, anti-local govt, and anti-working family. Time to paint them into a corner.                                                             

 

There is obviously a natural alliance between your efforts and ours. In fact, the need to spread the word..to get more local officials involved with the process..and to mobilize the groups under your umbrella organization into being part of the muscle and body count we can get to the hearings and pressing the issues with local legislators, are all functions that are necessary if we want to succeed in this effort. As the saying goes, united we stand...divided we fall. As the local budget season begins in the first quarter, we hope to enlist the municipal officials in informing the public of these matters, and would encourage taxpayers to speak directly to the issues at the budget hearings and Town Meetings across Connecticut. I would encourage your groups to work where they can with local officials and state reps to push the agenda....as there is no hope for local and state govt when the legislature spends your tax dollars like water...and where they operate under thinking of labor rather than management. We face a gargantuan task, and need to work collectively on many fronts to get the job done. It will take time, and much effort, but we know we have no choice. Your critical and supplemental efforts at the grassroots in this would be greatly appreciated, as we prepare to fight the good fight.   

 

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Robert Young, ryoung0@snet.net

Wethersfield Taxpayers Association

Subject:  State Supreme Court upholds $1.75 million award for seized property

 

Associated Press
December 4 2004

(From Susan Kniep:  We are indebted to Bob Young of
Wethersfield who has kept us current on eminent domain and property rights issues.   The following is one such article…)

 

HARTFORD, Conn. -- The state Supreme Court upheld a damages award of $1.75 million against the town of Windham and to the former owners of the Windham Mills property that was taken by eminent domain.

In the unanimous decision Friday, the justices noted a "protracted and contentious" dispute that dates to the early 1990s.
   For a continuation of this article please go to the following:   http://www.ctnow.com/news/local/statewire/hc-04183445.apds.m0017.bc-ct--willdec04,0,3217984.story

 

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Marvin Edelman, marvined@earthlink.net

Windham/Willimantic Taxpayers Association

 

Dear Susan:

 

Now we have this scandal which could bankrupt the town of Windham.  You may wish to publish Bill Rood's letter on the FCTO website.  Marvin   (From Susan Kniep:  Please note that the following is in relationship to the aforementioned article provided by Bob Young.)

COMMENTARY:

The Supreme Court of the state of Connecticut has forced the people of the town of Windham to finally confront the truth and reality about the $9 million financial catastrophe that our local politicians have foisted on us and on the backs of our children and grandchildren.     

 

The fiasco began ten years ago when then First Selectman Walter Pawelkiewicz announced to the dozen people attending a town meeting that he had a sure-fire plan for bringing new prosperity to the town.  He advocated that the town of Windham use the power of eminent domain and seize the Windham Mills for $1 from their private owners, the ATC Partnenership.  He failed to tell his audience that he would be violating the good-faith negotiations still going on with the ATC group for the purchase of the property at true, current value.  The public record reports that when James DeVivo and Frank Ereshena questioned the wisdom and legality of such radical action, Pawelkiewicz quieted their uneasiness with the unequivocal assurance that the project would regenerate prosperity in the town with 1200-2000 new jobs, that it would have the support of state and federal agencies anxious to assist an economically distressed town such as Windham/Willimantic and, as a final reassurance, that this would never cost the people in town a single dollar.  No one suggested that for such a precedent-setting action it would be prudent to secure broader taxpayer approval through a town-wide referendum.

 

Unless everyone has forgotten Pawelkiewicz then engineered the board of selectmen to transfer the Mills for another $1 to the umbrella Northeast Connecticut Economic Alliance which then morphed into the Windham Mills Development Corporation with the former first selectman among the self-appointed members of the board of directors.  Those who raised charges of conflict of interest and questionable ethical practices were maligned as negativists and obstructionists.

 

And so the ten-year saga began.  The ATC Partnership sued the town for the true value of the property.  Offers to settle were rejected by successor boards of selectmen. Upon the advice of the town’s attorney Richard Cody, rulings by Superior and Appeals Courts were continuously appealed with reckless disregard for the expenditures of the people’s money. We now know the resulting costs.  The bill comes to the $4 million which the taxpayers must pay the ATC Partnership, the $4 million bond that the electors voted to give as a gift to the Mills in the misguided effort to save the Mills from bankruptcy but which will now be auctioned off on December 15, and the $1 million in legal fees and court costs that have been paid to Attorney Cody for his role in this unholy affair.

 

If the taxpayers in Windham/Willimantic retain any belief in holding  elected officials to a moral and ethical code of behavior and that public responsibility requires public accountability, in full righteous anger they should demand the resignation from public office of every politician who participated in this travesty of public service and public trust and fire the attorney who contributed the self-serving and flawed legal advice which has brought shame and disgrace to the town of Windham.

 

 

William Rood, President

Windham/Willimantic Taxpayers Association

91 Parish Hill Road

North Windham, CT 06256

860-456-2287

December 6, 2004

 

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Tim White, timwhite98@yahoo.com
Questions:  Of the 169 CT municipalities, how many went to referendum this year? 

Cheshire, CT
203.439.4394

 

(From Susan Kniep: I received the following inquiry from Tim White for those who may wish to respond.) 

I'm curious to know...  of the 169 CT municipalities, how many went to referendum this year?  (If you happen to know.)  I'm a member of the Council in Cheshire and we managed to avoid a referendum.    We had a 6.5% residential property tax hike built in this year, as we recently went through property revaluation and the burden shifted from commercial to residential.  And largely due to that increase, we simply didn't increase spending this year.  There was great concern, but we did avoid a referendum...  which was my goal. Tim White

 

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I received this New York Times Editorial from a number of sources. 

 

Please, Sir, May I Have Some Armor?
Published:
December 9, 2004

 We're used to hearing Defense Secretary Donald Rumsfeld answer questions about things that went wrong in Iraq by saying they went right. When he does that to reporters, it's annoying. When he does it to troops risking their lives in his failed test of bargain-basement warfare, it's outrageous.

Yesterday, Mr. Rumsfeld told soldiers at a staging area in Kuwait to ignore "the doubters" who say the escalating war is not going well. Then he invited the troops, some of them headed to their second combat tours, to ask him "tough questions." They evidently thought he meant it.

A National Guard scout from Tennessee asked why there was still an equipment shortage that forced units to scrounge for "hillbilly armor": "pieces of rusted scrap metal and compromised ballistic glass that's already been shot up, dropped, busted." When the cheering died down, Mr. Rumsfeld said that, really, there was plenty of armor and in any case, "all the armor in the world" might not save you from a roadside bomb.

"You go to war with the Army you have," Mr. Rumsfeld fumed, "not the Army you might want or wish to have at a later time." He may have forgotten that the timetable for invading Iraq was dictated by politics, not military necessity. The armor shortage was also an outgrowth of his zeal to prove that a country can be invaded and occupied by a small and lightly armed force. A spokesman for the questioner's unit told reporters that 95 percent of its 300 trucks were not sufficiently armored.

Later, a woman said she and her husband "joined a volunteer army" but were serving extra tours under the "stop loss" program, a forced-duty clause in military contracts. "The 'stop loss' has been used by the military for years and years and years," Mr. Rumsfeld lectured. "It's all well understood when someone volunteers to join the service."

Mr. Rumsfeld talks a lot about supporting the troops. We wish that someone powerful would explain to him that doing so includes treating them with respect and telling them the truth.

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