Politics & Government

Selectmen Get a Legislative Update

Sen. Kevin Witkos and Rep. Linda Schofield discuss the state budget.

It can be hard to create a budget when you don’t have all your numbers. That is usually the situation facing many towns as they pass budgets before the state has adopted one. 

That is the case this year, but with the state trying to close a $3 billion deficit there is additional anxiety in wondering what the town may receive in state aid.

At the selectmen’s meeting Monday night, state Sen. Kevin Witkos (R-8th District) and state Rep. Linda Schofield (D-16th District) presented a legislative update on the state budget and how it might affect Simsbury. The General Assembly has a constitutional deadline to pass its budget by June 8.

Find out what's happening in Simsburywith free, real-time updates from Patch.

The town has already done the bulk of its work on the proposed 2011-12 budget of $87,273,844. The board of finance will hold its public hearing on the budget April 5 beginning at 7:30 p.m. in the high school auditorium. The annual town meeting will be May 3 and the referendum on May 17.

Gov. Dannel P. Malloy has been working to close that $3 billion shortfall and, as Schofield pointed, out the governor has three ways to do that: taxes, cuts and concessions. He is working on all three.

Find out what's happening in Simsburywith free, real-time updates from Patch.

Aid to cities and towns could be one of the cuts. Schofield said that the money that goes to cities and town is second only to the cost of Medicaid in the state.

“Towns are the next biggest line item,” she said. “You guys are a target.”

On the other hand, new taxes could add to the town’s tax rolls. Some taxes come from the elimination of exemptions, such as eliminating the mandated property tax exemption for boats and planes. Locally this would affect the Simsbury Airport.

“It will basically close down our airport,” said Schofield, noting that a plane owner can move a plane somewhere where there is no tax.

Another proposal is to restore taxes on “cabarets” — in other words a levy on venues with entertainment that serve alcohol. Locally this would affect places like the Maple Tree Café.

“It would affect the [Simsbury] Performing Arts Center,” said Schofield.

Schofield said she thought some of the new taxes might not make it through the budget process.

The good news for the immediate year is that the education cost-sharing money that Simsbury receives from the state will most likely remain flat, Schofield said.

The town received $5,367,517 in an education cost-sharing grant in 2010-11 and is expected to receive the same in 2011-12.

A sheet with a list of the municipal aid to Simsbury showed few decreases and in fact a few spots where there was slight increase at this point in the budget process.

“We don’t want to cut municipal aid,” Witkos said.

Some of the new taxes or elimination of tax breaks being considered include eliminating the mandated property tax exemption on certain larger commercial vehicles; increasing the hotel tax from 12 percent to 15 percent; and creating a 3 percent surcharge on car rentals.

Other ideas: add 0.1 percent to the increased sales tax rate of 6.25 percent for retail sales and increase the municipal portion of the real estate conveyance tax rate from 0.25 percent to 0.50 percent, as a local option.

Schofield said there were opportunities that were missed to help towns. She said changes to binding arbitration rules would have made a big difference in helping towns.

Another concern she has is that none of the proposed taxes are linked to mandatory property tax relief.

Schofield said it was wise for Simsbury not to include any monies from the proposed taxes in its budget. She reiterated that the town’s aid from the state will most likely remain flat but intact this year.


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