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Governor Malloy's budget proposal includes meaningful mandates relief to towns and cities, below are details. We expect bills to be drafted in the near future and will provide greater detail as information becomes available.
Local Assessment of Partially Completed Structures
Identical to CCM 's proposal - would clarify the municipal authority to assess, for the purposes of local property taxes, partially constructed structures by amending CGS 12-64 to include "improvements that are partially completed or under construction".
Background: Kasica v. Town of Columbia, a Superior Court decision dated October 6, 2011, decreed that municipalities are not permitted to assess partially constructed structures until completion and the issuance of a certificate of occupancy. During the 2011 Legislative Session, CCM lobbied to defeat Senate Bill 505, "An Act Concerning the Assessment of New Construction". The bill would have prohibited towns and cities from collecting property taxes on partially-completed construction sites. CCM opposed it as an unfunded state mandate, and successfully killed the bill in the Planning and Development Committee. According to results of a survey conducted by the Connecticut Association of Assessing Officers (CAAO), not enacting this proposal could cost municipalities approximately $30 million statewide in lost property tax revenue.
Minimum Budget Requirements (MBR):
Non-conditional funding districts:
- 2012-13 MBR equals 2011-12 budgeted appropriation, except for:
- up to one-half percent reduction for an increase in resident students when comparing October 2011 and October 2009;
- up to a one percent reduction for demonstrating new savings through increased inter-district efficiencies or through regional collaboration; or,
- a reduction determined by the Commissioner for documentable savings for closing of one or more schools.
- Any increases in ECS aid may be added to the board of education at the discretion of the municipality.
Conditional funding districts (the 30 districts with the lowest District Performance Index):
- 2012-13 MBR equals 2011-12 budgeted appropriation plus any additional local funds necessary to ensure that the local share of public school expenditures is at least 20%.
- Any increases in the ECS aid will be conditional, subject to the Department of Education approval for the purpose of improving district-wide academic improvement and reduction of any achievement gaps.
Phase-out of Health Insurance Premium Tax
Identical to a CCM proposed amendment (2010 S.B. 16) - would phase out the health-insurance premium tax on municipalities by (a) cutting the tax rate by 50% beginning 2014, (b) by another 25% for 2015, and (c) eliminating the premium tax on municipalities altogether for 2016.
CCM has long advocated for protecting municipalities from the premium tax as a tangible step that the State can take to help cut costs for property taxpayers. The premium tax costs municipalities up to $9 million each year. The tax is 1.75% on fully insured municipal premiums. Municipalities that are self-insured do not pay the premium tax. But some municipalities, particularly small towns, cannot reasonably consider self-insurance as an option, because just one catastrophic illness could have a severe negative impact on a local budget.
Unemployment Exemption
Similar to CCM's proposal - would establish a minimum threshold of at least 600 work-hours of service for part-time, temporary, or seasonal municipal employees' eligibility for unemployment benefits.
This threshold would protect existing, limited funds and protect against abuse of benefits - while also offering towns and cities some financial and administrative relief.
Redaction of Certain Personal Information Under FOIA
Similar to CCM's proposal - would limit the scope of the requirement in a way that would protect both the public's right-to-know and the privacy of public employees.
A key CCM legislative proposal this year - local leaders made clear their request to seek relief from the requirement to redact certain personal information for certain individuals from public documents requested via the Freedom of Information Act.
Storage of Evicted Tenants' Possessions
A variation of previous CCM proposals - would allow municipalities to assess landlords for the cost of storing evicted tenants' possessions, and would then, stipulate towns and cities store such items for an additional 15 days.
Although some relief was provided to towns and cities by eliminating the portion of this mandate that required municipalities transport such items - the existing mandate to store items continues to drain local finances and resources. While municipalities are allowed to try to recoup some of the costs by auctioning off the items, municipalities must incur costs associated with conducting an auction (including publicizing the auction, etc.). And, usually the possessions are not sellable - ultimately, the revenue generation does not meet full reimbursement. Therefore, requiring municipalities to collect receipts from landlords and calculate the amount of reimbursement might be an added administrative burden.
Additional Education Mandates Relief ## ## ## While the proposed mandates reform proposals are appreciated, and will provide relief to hard-pressed property taxpayers, CCM will continue to push hard for relief from the most onerous unfunded state mandates -- the prevailing wage rate and binding arbitration. Comprehensive mandates reform cannot occur without significant change to these very costly mandates. | 
