Fab Real Estate Blog: Proposed Connecticut State Budget to Fund Education

Proposed Connecticut State Budget to Fund Education

Connecticut's Governor recently released her proposed budget for the state.  Included are additional monies to fund education.  The plan calls for an additional $1.1 Billion to be given to towns and cities over the next five years to help pay for school costs.

Funding for these expenses will be derived from an increase in the state income tax of .25% in 2008 and another .25% in 2009.

While town leaders are pleased with the possibility of receiving additional funds to defray education costs, they are concerned that the final state budget will be probably be approved in June, which is after the local municipal budgets (which determine homeowners' property tax rates) are finalized.  As such, town mayors and selectmen must determine whether or not to account for these anticipated state funds when planning their local budgets.

Newtown, Connecticut's First Selectman has stated that his town will move ahead with their budget under the assumption that they will receive the additional funds from the state.  Should the extra state funds not be passed, then the town of Newtown - and its residents - may be faced with a budget shortfall.

Ridgefield, Connecticut's First Selectman does not expect to add the anticipated state funds into next year's budget.  It is undetermined what affect on future years' property taxes these funds will then have if they are received - will they be used to reduce taxes in the next fiscal year, or will the town government utilize them for other expenses?

Danbury, Connecticut's Mayor expects the additional funds to lower town residents' property taxes.

As proposed, local Connecticut towns can expect the following increases over the current 2006-2007 numbers:

Bethel:             2006-2007:  $7,372,181      2007-2008:  $7,743,113     2008-2009:  $7,992,825
Brookfield:        2006-2007:  $1,202,507     2007-2008:  $1,555,651     2008-2009:  $1,793,389
Danbury:          2006-2007:  $17,588,819    2007-2008:  $23,078,118   2008-2009:  $26,773,527
New Fairfield:    2006-2007:  $4,017,911      2007-2008:  $4,144,518     2008-2009:  $4,268,854
New Milford:      2006-2007:  $10,741,407    2007-2008:  $11,999,340   2008-2009:  $12,846,183
Redding:          2006-2007:  $466,523        2007-2008:  $723,556        2008-2009:  $896,592
Ridgefield:       2006-2007:  $1,381,767      2007-2008:  $2,188,710     2008-2009:  $2,731,946
Sherman:         2006-2007:  $162,023        2007-2008:  $259,975        2008-2009:  $325,916

Unfortunately, it was not disclosed as to why each town would receive a different percentage increase in funds for education.  From the current tax year to the 2007-2008 tax year, Danbury would receive a 31% increase in education funds form the state, while New Fairfield would only receive a 3% increase.  Hopefully, additional information explaining these discrepancies in funding will be forthcoming from the governor.

Comment balloon 0 commentsDon Fabrizio-Garcia • February 08 2007 08:28PM

Comments

Participate