Lavielle: Specter of County Government Comes Back to Haunt Connecticut in SB 1

Under this system, each municipality would remit a portion of its local property taxes to its regional Council of Governments (COG), which would in turn redistribute those funds among all of its member towns and cities, according to a formula that takes into account factors including each municipality’s population and property value.

Report by Paula Antolini
March 24, 2015 1:30PM EDT

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From State Rep. Gail Lavielle:

HARTFORD – State Rep. Gail Lavielle (R-143) has submitted testimony opposing provisions in a bill that she said would create a new layer of taxing authority and bureaucracy in Connecticut that would be similar to aspects of county government.

Rep. Lavielle’s testimony refers to certain provisions of SB 1, An Act Concerning Tax Fairness and Economic Development, which is currently under consideration by the General Assembly’s Planning and Development Committee.

Sections 51-55 of the bill require the establishment of a “regional property tax base revenue sharing system”. Under this system, each municipality would remit a portion of its local property taxes to its regional Council of Governments (COG), which would in turn redistribute those funds among all of its member towns and cities, according to a formula that takes into account factors including each municipality’s population and property value.

“Although we may never call our COGs ‘county government’, this bill is a move in that direction,” Rep. Lavielle continued. “If SB 1 passes as written, Connecticut’s regional structure could acquire the same administrative and cost burdens, bureaucratic complexity, and loss of local access to and authority over local revenues as county government – no matter what we call it.”

Rep. Lavielle noted that certain municipalities would gain revenues through the process outlined in the bill and that and would lose. Those that lose would likely face important shortfalls in their local budgets. To continue to provide essential services to their residents and local businesses, they would be required to raise local taxes, in many cases quite considerably. The result: residents would pay more in order to sustain the new layer of regional government, while also paying more just to maintain essential services in their own municipalities.

Rep. Lavielle recalled that in 2013, when the General Assembly passed legislation reorganizing Connecticut’s regions and imposing the COG structure on all regional planning organizations, there was much discussion about its implications, and many municipal CEOs expressed concerns that the new legislation might lead to regional taxation initiatives.

“On June 3, 2013,” she said, “I participated with several others on the House floor in a lively debate of HB 6629, the precursor bill to the COG/regional reorganization legislation passed a few days later. The proponents assured us during the debate that COGs would not be responsible for property taxation issues on a regional basis or at any other level. That assurance is not upheld in SB 1.

“I believe that this regional tax base proposal will create severe financial stress for individuals, businesses, and municipalities that are already struggling under one of the country’s heaviest combined tax burdens,” said Rep. Lavielle, “and I have urged the Committee not to approve it.

“If this proposal in SB 1 does pass out of the Committee as written, however, I hope that all of the proponents will characterize it accurately and with all possible transparency to ensure that members of the public and their elected officials fully understand it for what it is,” said Rep. Lavielle. “Creating a new level of government that collects and redistributes tax revenues is not a step that should be taken without widespread public support.”

Connecticut abolished county government in 1960.

For Rep. Lavielle’s testimony on SB 1, click here.

*****

ABOUT GAIL LAVIELLE

Gail Lavielle was elected in 2010 to represent Connecticut’s 143rd House district, which includes most of Wilton, the eastern part of Norwalk, and part of Westport west of the Saugatuck River. She is the House Ranking Member of the General Assembly’s Education Committee and a member of the Appropriations and Transportation Committees. Previously, she served as Ranking Member of the Commerce Committee and as a member of the Higher Education Committee. She co-chairs the bipartisan Commuter Caucus, and sits on several other bipartisan caucuses focused on Manufacturing, services for people with Intellectual and Developmental Disabilities, and protecting Long Island Sound.

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