Jul 26, 2014
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Are East Hampton and Portland Too Dependent on Property Taxes?

The Connecticut Conference of Municipalities says it is and that all of Connecticut's 169 towns are being shortchanged by the state.

Are East Hampton and Portland Too Dependent on Property Taxes?

 

Connecticut’s 169 municipalities have gotten little increased financial help from the state in the last five years and remain overly dependent on state aid, the Connecticut Conference of Municipalities says.     

CCM, the main lobbying group for local communities, released a bulletin Monday to candidates for the state’s General Assembly urging them to make education funding a priority in the coming year, according to the Connecticut Mirror.

In East Hampton, town residents approved a budget of $38.3 million in 2012 which included a 1.54 percent spending increase and a tax rate of 25.97 mills. During this year in Portland, voters approved a $30.4 million buget with a 2.12 percent spending hike and a tax rate of .47 mills.

State aid for towns overall stands at about $3 billion per year, while Connecticut’s 169 towns collectively raise about $9 billion annually from local property taxes, James Finley, CCM’s executive director, told the Mirror. State aid to towns has remained relatively flat over the last five years. When you factor in the rate of inflation, that means towns have actually lost financial ground during that five-year period, Finley added.

The state aid figures represent an over-dependence by towns on local property taxes, something the General Assembly should address by closing shortfalls in education funding to towns, Finley said.

"The key to property tax relief is education finance reform," Finley told the Mirror. "The overdependence on the property tax is unsustainable, and hometown Connecticut is in desperate need of revenue assistance."

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