Published March 1, 2021 •
Updated on March 1, 2021 at 8:22 pm
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The city of New Haven faces a $66 million deficit and the mayor said has two different budget proposals, contingent on the level of funding from the state as well as Yale University.
One budget is the “crisis budget,” which includes a tax increase, employee layoffs and the closing of a library, firehouse, and senior center. The mayor said the city would be forced to adopt the “crisis budget” if New Haven does not receive commitments over the next several months of significant increases in funding from the state and Yale University.
Published February 06. 2021 12:01AM | Updated February 06. 2021 9:54PM By
The pressure is on for Gov. Ned Lamont to provide a property tax relief plan for Connecticut cities and towns that face a fiscal disadvantage because of the amount of untaxable property in their communities such as colleges, hospitals, public housing, prisons and parks.
State Senate President Martin M. Looney, the unapologetic progressive, has emerged as the advocate for the municipalities, gathering bipartisan support to direct more state aid their way.
Connecticut does provide so-called PILOT payments in lieu of taxes reimbursements for nontaxable property but at only about 30% of what the municipalities would receive if the properties were taxed.
“It is completely unrealistic for anyone to think we can cut this kind of money,” said Mayor Justin Elicker. “Our city would not function.”
The pension payments continue to rise each year putting a strain on the budget. The city is researching their legal obligation to follow that $25 million suggested increase by the pension boards, and the impacts if they don’t fully meet the amount.
Elicker said he’s not considering bonds to cover those costs. The payments will have to come from somewhere in the city.
That will be tough, he said, because according to a chart shown during the meeting, two-thirds of the city’s budget are contracted items that have to be paid. They include the pension payments, employee salaries, insurance, and state-funded portions of the education budget.
Municipal leaders urge Gov. Lamont to include PILOT in next biennial budget
Hartford s PILOT shortfall is indicative of the state s level of funding of the program.
On Friday, January 15, New Haven Mayor Justin Elicker and 27 of his counterparts, executive officeholders from across Connecticut, sent a letter advocating that Gov. Ned Lamont includes in his budget the necessary funding to implement a tiered Payment in Lieu of Taxes (PILOT) program. Here is the complete text:
Dear Governor Lamont,
As you continue to guide our state through the COVID-19 pandemic your budget proposal for the next biennium will be an essential part of the economic recovery of our state and the well- being of our residents. There is an opportunity to provide desperately needed funding to municipalities, support small businesses, prevent an increased property tax burden on our most vulnerable residents, and secure future tax revenue for the state.