CONNECTICUT COUNCIL OF SMALL TOWNS 2009 LEGISLATIVE PLATFORM

COST is the strong voice of Connecticut’s smaller communities. Its members – 1st selectmen, mayors, town managers and other municipal leaders - convene annually at Connecticut’s Town Meeting to discuss and vote on a Legislative Platform. The COST Legislative Platform represents the members' highest-priority policy concerns to be advocated during the upcoming legislative session of the Connecticut General Assembly.

INTRODUCTION

The COST Board of Directors met during January 2009 to discuss COST’s possible 2009 legislative priorities based on an extraordinary response by members to COST’s online legislative priorities survey. This input helped shape what COST calls its 2009 “focus issues”.

Fundamental to its legislative action strategy for the 2009 session is the assumption that COST will have an informed and action-oriented grassroots membership of municipal leaders who will lobby their legislators and testify on these important municipal issues. Below are the several focus issues discussed and adopted unanimously by the membership during its annual meeting on January 21, 2009.

COST 2009 FOCUS ISSUES Back to top

1. Make Permanent the Municipal Real Estate Conveyance Tax

The FY 2008-2009 budget agreement extended the current municipal conveyance tax rate until June 30, 2010. If the General Assembly fails to extend the current municipal conveyance tax rate, the loss of this admittedly declining revenue source would be very difficult for towns. The real estate conveyance tax provides towns with sorely needed funds to help meet their municipal service obligations. COST advocates making the municipal real estate conveyance tax permanent at its present rate.

2. Repeal the FOI Mandate Requiring Minutes and Agendas to be Posted on a Town’s Website

Although COST and its members support efforts to increase transparency and expanded information about local government operations, mandating strict statutory timeframes for posting minutes and agendas on a town’s website has proven difficult and costly for many of Connecticut’s small towns. Many small towns do not have IT staff and rely on outside vendors to maintain their websites. In addition, many boards and commissions are staffed by volunteers who don’t always have the time to get minutes to the town clerk in time to post on the Internet. To avoid penalties and hearings associated with a violation of the FOI law, a dozen or so small towns have actually shut down their websites. To address these concerns, COST advocates repealing the FOI website posting mandate and, instead, encourage towns to voluntarily post more information on their town website.

3. Increase the Prevailing Wage Threshold on Municipal Public Works Projects to $1 Million and Index the Threshold to the Annual Inflation Rate.

The prevailing wage mandate results in significantly higher costs for local public works projects. Prior to 1991 the legislature adjusted the prevailing wage threshold on a six-year schedule to ensure that smaller projects were exempt from the mandate. However, the thresholds ($100,000 for renovations and $400,000 for new construction) have not been adjusted for more than fifteen years. Failure to adjust the thresholds for prevailing wage projects to exempt smaller town projects has cost them millions of dollars. COST advocates increasing the prevailing wage threshold to $1 million for new construction and renovations and indexing the threshold to annual inflation rates.

4. Repeal the In-School Suspension Mandate

Although well intentioned, the mandate requiring towns to use in-school suspension to discipline students for all but the most egregious violations imposes a costly burden on small towns, which must make space available and hire additional staff to monitor students in in-school suspension. At a time when towns are bracing themselves for additional cuts in state education aid, it makes sense to repeal this costly mandate. COST advocates repealing the In-School Suspension Mandate.

5. Enact a Statutory Prohibition on Unfunded Mandates

Unfunded mandates place an unfair fiscal burden on towns. Municipalities are facing staggering financial challenges because of their over-reliance on property taxes to pay for essential public services. Given the current limited levels of state aid, towns simply cannot afford any new unfunded mandates. COST advocates adoption of a statutory prohibition against any new or expanded state mandates on municipalities unless the state fully funds the costs to local government.

6. Repeal the Property Storage Mandate

Connecticut imposes a costly and unnecessary obligation on towns to remove and store personal property left by evicted tenants. There are an estimated 2,500 residential evictions per year. Storage costs average between $10 and $15 per day, per eviction, for an average of 15 days, resulting in costs ranging from $12,000 to $165,000 per municipality. Requiring municipalities to remove and store possessions for evicted tenants also involves a substantial amount of paperwork and a considerable amount of time. This is of particular concern to small towns, which often lack the staff to devote to these requirements. COST advocates repealing the property storage mandate.

7. Exempt Municipal Health Insurance Policies from the Insurance Premium Tax

The skyrocketing cost of local employee and retiree health insurance represents one of the most serious fiscal challenges facing small towns. Double digit increases in health insurance costs have begun to dominate budget growth in many communities resulting in fewer resources available for other critical services, including education. Moreover, towns are restricted in their ability to manage these health care costs by state laws and practices. To address this critical issue, COST supports legislation to exempt municipal health insurance contracts and policies from the insurance premium tax.

8. Reduce the Reimbursement Threshold for Special Education Costs

The cost of special education continues to grow at an exponential rate and places an untenable fiscal burden on many towns. Moreover, from year to year, a school district’s costs for special education can vary dramatically and are difficult to plan and budget for. The Special Education Excess Cost Grant was designed to reduce a town’s exposure to significant and unexpected special education costs. Under current law, a district is eligible for a grant for the costs associated with children whose cost of special education, related services and room and board exceed 4.5 times the previous year’s Net Current Expenditures per Pupil (NCEP). COST advocates a reduction in the state threshold for special education cost grants to a maximum of two and one-half times the average educational cost of the school district.

9. Reinstate Law Requiring Public Hearings on Unfunded Mandates

Unfunded mandates continue to drive up local costs beyond the control our small towns and cities. Too often, the real fiscal impact of a mandate is unclear until legislation is passed and towns are faced with compliance costs. In 1997, a law requiring committees to hold a public hearing on mandates referred to them by the Connecticut Advisory Commission on Intergovernmental Relations and advise leaders as to whether the mandates should be approved, rejected or modified was repealed. COST believes this important oversight mechanism is critical to reducing unfunded mandates on municipalities. COST therefore advocates the reinstatement of the law requiring public hearings on unfunded mandates.

10. Increase State Incentives for Voluntary Regional Cooperation Between and Among Municipalities

Connecticut’s small towns and cities support initiatives to encourage voluntary regional cooperation to provide programs to meet the needs of local residents and businesses in a more efficient, cost-effective manner. As Connecticut’s small towns and cities struggle to do more with less, many communities are exploring new opportunities to share resources to meet these growing needs. Programs such as the Regional Incentive Performance Grant program have been very successful in encouraging regional projects. The state should continue to fund these programs and make them more flexible to encourage even greater regional cooperation.


11. Allow Towns to Post on the Internet Meeting Notices Currently Required to be Published in Newspapers

Towns are required to publish numerous legal notices in newspapers. Unfortunately, advertising prices have increased dramatically, placing a fiscal burden on Connecticut’s small towns. In addition, many small town newspapers have gone out of business, requiring towns to publish notices in the more expensive metropolitan newspapers. Allowing towns with the staff and Internet capabilities to post such notices on their websites, will help reduce this fiscal burden.

STANDING POLICIES Back to top

In addition to targeting its efforts on the above-listed focus issues, COST will continue to advocate the standing policies contained in its Legislative Platform below:

STATE AID TO MUNICIPALITIES

Maintain Educational Cost Sharing Grants to Suburban and Rural Towns
While COST recognizes the fiscal pressures facing the State, it does not believe these pressures justify a failure to maintain funding for K-12 local education in communities where Education Cost Sharing (ECS) grants are capped, or where municipalities receive minimal levels of funding. Inadequate ECS funding of local education merely shifts the State’s fiscal burdens to municipalities, and results in untenable increases in local property taxes. COST urges the Legislature and the Governor to act during the 2009 session to significantly increase education funding to these under-funded communities. Specifically, COST recommends amending the education cost sharing formula by increasing the foundation, linking future annual increases to the foundation to the consumer price index, removing the cap on the formula and establishing an increased de minimus aid level which recognizes that all towns are entitled to a fair-$hare base level of state aid for K-12 education.

Expand Funding for Excess Cost Grants (Special Education)
The cost of special education continues to grow at an exponential rate and is placing an untenable fiscal burden on many towns. COST advocates a reduction in the State threshold for special education excess cost grants to a maximum of two and one-half times the average educational cost of the school district.

Maintain State Investments in the Town Aid Road (TAR) Program
For many smaller communities the Town Aid Road (TAR) program is one of their few sources of state aid. It provides towns with an essential source of financial support with which to make critically important improvements in the local road network. TAR funding levels are the same today as they were in 1967 when the program was established. During this period the consumer price index and the price of petroleum products have increased precipitously - yet TAR investments have not. Failure to maintain TAR at current levels of funding at a minimum ($30 million annually) will make it very difficult for towns to adequately maintain local roads and bridges.

Maintain Full Funding for the Local Capital Improvement Program (LOCIP)
Like the Town Aid Road program, the Local Capital Improvement Program (LoCIP) provides municipalities with an invaluable source of support for local infrastructure improvement projects. The State of Connecticut’s commitment to local capital improvement projects such as roads, bridges or other important public building construction activities must be maintained. COST advocates maintenance of LoCIP funding at current levels.

Fully Fund Pequot/Mohegan & Pilot Programs
Connecticut towns, which are overly reliant on property taxes to pay for essential public services, need the State of Connecticut to provide fair levels of funding for statutory aid programs including the Pequot/Mohegan and PILOT grant programs. COST advocates full funding for both programs.

FINANCE, STATE BONDING AND TAX POLICIES Back to top

Implement Property Tax Reform Initiatives
In an ongoing effort to reduce municipal over-reliance on local property taxes to fund essential local services, including education, COST urges passage of a bill that would fund a statewide build-out analysis and a tax incidence study.

Make the Current Municipal Conveyance Tax Rate Permanent
In 2007 the Legislature agreed to a one-year extension of the increased municipal portion of the conveyance tax (from the old rate of $1.10 per $1,000 to $2.50 per $1,000 of transaction sales price). This increase, scheduled to sunset on July 1, 2010, has provided towns and cities with sorely needed revenues. COST advocates eliminating the sunset provision and making permanent the municipal portion of the conveyance tax at its present rate.

Maintain Funding for the Small Town Economic Assistance Program
COST advocates institutionalizing the Small Town Economic Assistance Program (STEAP) at a minimum of $20 million per year. Such “institutionalization” is necessary to provide ongoing commitments of economic development funding to more than 130 suburban and rural towns, as is provided to the cities through the Urban Action Grant Program.

Provide Towns With Local Option For Conveyance Tax
During the past decade many towns have seen the local quality of life threatened by the rapid increase in both residential and commercial development and the decline of open space. In order to preserve prime land for the future benefit of community residents, many grassroots leaders have been seeking to stem the tide of development by purchasing such open space. However, state aid for open space acquisition has declined precipitously and prospects for increases in funding are dim. Consequently, COST supports the passage of legislation to enable towns to adopt an optional local conveyance tax as a new source of revenue for the purpose of acquiring open space.

Continue Support for the State Clean Water Fund
The legislature authorized $90 million in both years of the biennium for Clean Water Fund grants through General Obligation bonds. The Clean Water Fund provides grants and loans (from revenue bonds) to municipalities to plan, design, and build wastewater treatment plants. COST supports authorizing similar bonding amounts in future years.

UNFUNDED MUNICIPAL MANDATES Back to top

Prohibit Unfunded Mandates
Unfunded state mandates put an unfair fiscal burden on towns. Municipalities are experiencing enormous financial difficulties because of their over reliance on property taxes to pay for essential public services. Given current limited levels of state aid, towns cannot afford new unfunded mandates. COST urges the Legislature to adopt a statutory prohibition against unfunded state mandates on municipalities.

Reform Binding Arbitration Mandate
The binding arbitration mandate significantly increases the overall cost of municipal budgets. In these difficult economic times, current binding arbitration laws can no longer be justified. COST urges the passage of legislation to modify the Municipal Employee Relations Act and the Teacher Negotiation Act to give towns the right to reject arbitration awards by a two-thirds vote of town’s legislative body. COST also urges the Legislature to adopt the 2006 recommendations of the Program Review and Investigations Committee: “The Teacher Negotiation Act shall be amended to require fully stipulated awards be considered negotiated agreements and submitted to the local legislative body for review. Should the local legislative body reject the stipulated award, then the first panel arbitration process would begin anew. The opportunity for review by a second panel would not be available for stipulated awards rejected by local legislative bodies that go again into arbitration.”

Increase Prevailing Wage Thresholds on Municipal Projects
Current estimates indicate that the prevailing wage mandate increases the costs of applicable local projects by up to 20%. Municipal taxpayers unnecessarily pay millions of dollars in higher costs for public works projects. COST supports passage of legislation to establish a single-tier, one million dollar threshold for prevailing wage rates on local public works projects. The threshold would apply to both new construction and renovations and would be indexed annually for inflation.

Reform Property Storage Mandate
State mandates place heavy financial burdens on towns and cities. One such mandate requires that municipalities gather and store personal property belonging to evicted tenants. COST opposes the municipal property storage mandate and will advocate legislation eliminating the requirement that municipalities gather and store the personal property belonging to evicted tenants.

PROMOTE HEALTHY COMMUNITIES & STRONG GRASSROOTS GOVERNMENT

Preserve and Strengthen the Municipal Probate Judge System
COST supports strengthening and preserving local probate courts in smaller communities. COST opposes the mandatory consolidation of local probate courts (directly or indirectly) and opposes any financing scheme for local courts that would be unfair to small towns. COST supports the development of a fair and equitable fee structure to help relieve the financial pressures that some probate courts may be experiencing.

Ensure Balanced Municipal Ethics Requirements
The legislature passed a bill in 2007 establishing a task force to study recommendations by the Office of State Ethics for implementing a municipal code of ethics. The task force is required to report its findings and recommendations to the Legislature’s Government Elections and Administration Committee by January 1, 2009. COST is opposed to previously proposed polices that would be extraordinarily costly and which contained provisions requiring public service volunteers to file personal financial disclosure statements. The fiscal note on the original proposed municipal ethics legislation indicated that the cost to towns affected by this bill would be no less than $60,000 per year. COST will continue to advocate for fair and balanced legislation that reflect the current views of its members.

Oppose Mandated Elimination of Part Time Health Departments
The Legislature may again raise a bill during the 2009 session of the Connecticut General Assembly that would effectively force towns to eliminate part-time health departments. COST opposes proposals that mandate the elimination of part-time health departments.

Promote Affordable Housing in Small Towns
The State’s Affordable Housing Land Use Appeals Act provides that, unless 10% of a town’s housing is affordable, the town cannot deny a developer’s proposal for affordable housing without a very compelling reason. The law was modified during the 2002 session to allow a town to include “accessory apartments” as part of its 10% affordable housing count. However, under the amended Act, accessory apartments must have a 10 year deed restriction committing the owner to rent the apartment at 30% or less of the tenant’s income, and to someone whose income is less than or equal to 80% of the area, or the state’s median income, whichever is less. This onerous provision will reduce the number of homeowners willing to have their accessory apartments used to help meet the towns’ “affordable housing” obligations. COST supports legislation that would modify the State’s Affordable Housing Appeals procedure to allow existing affordable market rate units to be considered in meeting the 10% threshold and to allow existing development patterns to be a factor in determining the density of proposed affordable developments.


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Copyright 2009. All Rights Reserved by the Connecticut Council of Small Towns.