Name: Plan would boost funding for struggling Connecticut cities with tax-exempt property, but lawmakers can’t agree on how to pay for it
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Plan would boost funding for struggling Connecticut cities with tax-exempt property, but lawmakers can’t agree on how to pay for it

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AdvertisementBy Hartford CourantFeb 01, 2021 at 2:37 pmHARTFORD — A bipartisan group of Connecticut legislators and mayors called Monday for increased state funding for cities like Hartford and New Haven, but they could not agree on how to pay for it.The largest cities would receive millions in additional state money under a multipronged plan to increase state payments by Senate President Pro Tem Martin Looney of New Haven and House Speaker Matt Ritter of Hartford — the two top Democrats in the legislature. While multiple towns would benefit, the two biggest winners would be New Haven with an additional $43.6 million per year and Hartford with an additional $22.8 million per year.AdvertisementThe money would come through increased state payments in lieu of taxes, known as PILOT, that reimburse cities because properties like hospitals and colleges are exempt from property taxes.Looney says it is unfair that the state currently pays the same reimbursement rate for tax-exempt hospitals in all 169 cities and towns. As a result, Greenwich receives the same percentage for Greenwich Hospital property as New Haven receives for Yale-New Haven Hospital and Hartford receives for Hartford Hospital.AdvertisementThe plan would cost an estimated $114 million per year in a restructuring of the decades-old PILOT program that is based on the properties in the town and not on the financial strength of the municipality.At the same time, Looney is calling separately for an annual so-called mansion tax on all homes with a market value of more than $430,000. The tax would generate $73 million per year, including $22 million paid by Greenwich residents. He is also calling for a 1 percentage point surcharge on capital gains taxes for couples whose annual income is more than $1 million. The majority of capital gains are currently paid by millionaires and billionaires in Fairfield County.Darien First Selectman Jayme Stevenson, a Republican, appeared with Looney, Ritter and others Monday during a virtual news conference and said she supports the concept of helping the cities. She said she hopes that the state’s budget surplus, currently projected at $179 million, will be large enough at the end of the current fiscal year so that the plan can be funded without any tax increases.“I most definitely oppose a statewide mansion tax,” Stevenson said when asked how the proposal would be funded. “The devil is in the revenue details.’'Wolcott Mayor Thomas G. Dunn also supported the plan, even though his small, conservative community would receive less than $1,000 per year in additional funding.“We stand with everyone. We have to work together,” said Dunn, an unaffiliated voter. “Wolcott will not benefit too much from this dollar-wise.”Under the restructuring proposal that would create a tiered system of payments, Bridgeport would receive an additional $5.85 million, while New Britain, the home of Central Connecticut State University, would gain $3.8 million. Mansfield, which is home to UConn’s Storrs campus, would collect an extra $3.7 million, while Middletown, home of Wesleyan University, would receive an additional $3.6 million.The current PILOT system has been in place for decades but has avoided fundamental change, largely because the legislature is dominated by suburban and rural towns that typically have less tax-exempt property. But change is possible this year because the legislature’s two most powerful leaders have made it a priority, lawmakers said.AdvertisementNew Haven Mayor Justin Elicker said that 60% of the property in New Haven is nontaxable, increasing the burden on the other 40% of property owners who pay taxes. Due to a lack of funding, some New Haven public schools have a shortage of librarians and guidance counselors, he said.“I can assure you it is not because cities are wasting money,” Elicker said.Rep. Holly Cheeseman, the ranking House Republican on the tax-writing finance committee, said the legislature should be focused on helping businesses that have been hit hard by the coronavirus pandemic, such as aiding struggling restaurants that are trying to keep their doors open.“Let’s look at how we’re spending the dollars,” Cheeseman said. “Are we sure we’re getting the biggest bang for the buck? We should be concentrating laser-like on things that are going to help the COVID recovery. ... Let’s be smart about this.”Christopher Keating can be reached at ckeating@courant.com Advertisement

AdvertisementBy Hartford CourantFeb 01, 2021 at 2:37 pmHARTFORD — A bipartisan group of Connecticut legislators and mayors called Monday for increased state funding for cities like Hartford and New Haven, but they could not agree on how to pay for it.The largest cities would receive millions in additional state money under a multipronged plan to increase state payments by Senate President Pro Tem Martin Looney of New Haven and House Speaker Matt Ritter of Hartford — the two top Democrats in the legislature. While multiple towns would benefit, the two biggest winners would be New Haven with...

Plan would boost funding for struggling Connecticut cities with tax-exempt property, but lawmakers can’t agree on how to pay for it

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