Politics & Government

State Budget Tough on Individuals, but Better for Woodbridge and Bethany

If budget remains as-is, cities and towns will realize more funding

Gov. Dannel P. Malloy signed a $40.1 billion budget into law yesterday that included new taxes and tax hikes such as a higher sales tax of 6.35 percent up from 6 percent. The budget also adds a sales tax on some “luxury” items like manicures and pet grooming as well as storage and auto towing, and tacks on a special tax of 7 percent for cars that cost more than $50,000, boats priced above $100,000 and jewelry over $5,000.

While many residents are concerned about their budgets and wondering how they will make ends meet, cities and towns are breathing a collective sigh of relief; their funding remains intact, and in many cases, has increased.

According to Sen. Joe Crisco, “Our number-one objective was to make sure cities and towns remain whole.”

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Ultimately, he added, the hope is to help keep property taxes from skyrocketing, although it is up to each town to decide where they will use state funding.

The contentious three cents a gallon gas tax was removed from the budget.

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“Everyone has to drive their car,” Crisco explained. “If you don’t want a manicure because of the tax, you don’t get one.”

With a $4 billion problem, Crisco said, the legislature had to make difficult decisions.

“We have to have a balanced budget,” he said.

There is a catch, however; this budget hinges on the state’s labor unions making $2 billion worth of concessions over the next two years, which, Crisco said, is not as far-fetched as it may sound.

“In the past, they have made a $750 million concession,” he said.

If the unions don’t yield, the governor has a “plan B” which may include laying off up to 4,000 workers.

 

The Local Angle

“It looks like we’re going to be okay,” said Bethany First Selectman Derrylyn Gorski. “Although my understanding is the budget is dependent on concessions from the unions so we aren’t adding the funds to our budget configuration until we know what’s going on.”

Gorski said that .1 percent of the additional sales tax income would create a pool that would be parceled out to municipalities. In Bethany’s case, it means nearly $46,000 in funds, and for Woodbridge, just over $64,000.

Also, PILOT funding for manufacturing that had been eliminated has now been restored, which adds almost $55,000 more to Bethany’s budget and about $17,000 to Woodbridge’s.

While each town will use the added funds as they decide, the Bethany Board of Finance has already stated they would use it to keep the mill rate lower, keeping taxes lower.

 

In the end, all depends on union negotiations. Crisco said it’s still early in the process, and with five weeks left in the legislative session, anything is possible. Should negotiations fail, the governor will make his recommendations and the debate will continue.

If issues aren’t resolved by June, Crisco added, “We can always go into special session.”


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