Madison First Selectman Proposes New Measure to Help Keep Tax Rate Flat

The combined Madison schools and town budget for fiscal 2016-17 is $80.36 million or a $2.9 million increase over the current spending plan, which is in effect until June 30.

Because spending is increasing taxes will be going up too, right? Not necessarily.

First Selectman Thomas Banisch is seeking to use an $800,000 projected surplus to put toward keeping Madison’s tax rate flat next year, which is something the town hasn’t done before, the Madison Source reports.

The Board of Selectmen approved the request by a 3-2 vote. Banisch told the Source that using the surplus funds will help everyone by keeping the tax rate as low as possible.

The reason spending is increasing is because health insurance costs are spiking by 13.2 percent. The Board of Education budget request is $55.8 million or a 3.65 percent hike and the town budget is $24.6 million or a 2.53 percent increase.

Related story: Health Insurance Increases Have Huge Impact on Madison Schools Budget

Read the full Madison Source story here.