Connecticut's cities and towns provided their take, Wednesday, on what they think the first steps should be to balancing a projected $1.5 billion shortfall in the next fiscal year.
The Connecticut Conference of Municipalities proposed two sales tax changes, collective bargaining changes, and for the state to assume all costs for special education.
The sales tax issues could prove to be among the most controversial, because it raises revenue as Republicans have gained more control in the General Assembly than they've had in two decades, and have been opposed to tax increases in the past.
Since the report includes multiple options, CCM Executive Director Joe DeLong proudly proclaimed, "This report is different."
Using the phrase, "revenue diversification," city and town leaders laid out their sales tax proposal which, at once, would raise the state sales tax, while also levying a new, one percent sales tax that would be devoted revenue for city and towns.
That creativity, some said, is what makes the approach from CCM different than in the past.
Leo Paul, the First Selectman from Litchfield said, “We’ve heard numerous times from the legislature all you communities want to do is ask for more more more more money. That’s not what we’re doing. In this report we are offering alternatives.”
CCM proposes cutting the state's sales tax to 5.60 percent, from 6.35 percent. They also propose adding one point to the lower rate that would be devoted to municipalities, making the amount people pay for sales taxes 6.60 percent.
In addition, CCM wants the state to remove sales tax exemptions on at least ten percent of goods that are currently not subject to the taxes.
The items include groceries, gasoline, prescription and non-prescription drugs, and electric and gas bills.
CCM estimates the state could raise as much as $276 million in revenue if it adopted the new approach to the sales tax.
"This is a menu of ideas," said Hartford Mayor Luke Bronin. He predicts quick relief for property taxpayers if the General Assembly adopted the CCM report as policy.
“It’s a huge burden to property owners across the state. If this were adopted it would mean property tax relief to small towns, and suburbs and fiscal stability and sustainability for our biggest cities, Hartford included.”
Gov. Dannel Malloy, when reached Wednesday, said he hadn't yet read the entire report from CCM, but wouldn't dismiss its findings. He said, "At some point everybody has to have discussions, I remain open to discussions.”
