CCM, Mayors Still Concerned About Malloy Budget Impact On Local Property Taxes

Democrat John DeStefano has been preaching about the problems of the property tax for the past 20 years, and he says this year is shaping up as the worst yet.

In two decades as New Haven mayor, DeStefano says he has never seen a state budget that would raise his mill rate more.

As a result, DeStefano traveled to the state Capitol Tuesday to lobby against Gov. Dannel P. Malloy’s budget proposal by pleading his case to top legislative leaders who are now reviewing and reshaping Malloy’s fiscal plan. Lawmakers are working behind the scenes on the $21.5 billion budget plan that they hope will be resolved before the legislative session ends on June 5.

Malloy’s much-criticized car tax proposal would cost New Haven $15 million per year, and various other proposed cuts would cause even more problems, DeStefano says.

“We have been talking in this building, as Democrats and Republicans, for 20 years about the problem with the state’s over-dependence on the property tax,’’ DeStefano told reporters at the state Capitol complex. “And here you’ve got a budget that, more than ever, makes the state dependent on the property tax – a regressive tax that takes money from people irrespective of their ability to pay.’’

“Let me be very clear,’’ DeStefano said, mimicking one of Malloy’s favorite phrases. “I’ve never had a budget that increases taxes in New Haven by 4 1/2 mills from the state. That’s true.’’

DeStefano has clashed with Malloy through the years, including when they battled in the Democratic primary for governor that DeStefano won in 2006. He then lost the general election to Republican Gov. M. Jodi Rell, and Malloy won the governor’s office four years later. Since then, the two middle-aged Democrats have been on cordial terms at times, but DeStefano has sharply criticized Malloy’s budget this year as it will cost New Haven millions of dollars.

Malloy’s spokesman, Andrew Doba, said that Malloy “has prioritized middle class tax relief and education, among other issues. His proposal increases local education funding by $152 million over the next two years, and it also relieves hardworking families of the most hated and regressive tax in the state – the car tax.”

Doba continued, “Effective management is about setting priorities. To fund those priorities, the Governor’s budget also achieves $1.8 billion dollars in savings. The state is making hard decisions and setting priorities – there is no question that local governments will need to do the same.”

DeStefano and Connecticut Conference of Municipalities chief executive officer Jim Finley met Tuesday with both House Speaker J. Brendan Sharkey and Senate President Pro Tem Donald Williams in the hopes of remolding the budget.

“We hope the outcome is better for taxes and businesses than it started out at,’’ DeStefano told reporters.

Concerning a New Haven city budget that would have a property tax increase this year, DeStefano said, “That’s not smart for anybody, and the Speaker recognizes that and acknowledges that.’’

Gabe Rosenberg, a spokesman for Sharkey, said that no final decisions were made at the meeting but added that all sides pledged to work together in the months ahead.

“It was a productive meeting,’’ Rosenberg said. “The speaker understands what the municaplities are facing, and he’s going to work with them to make sure their concerns are heard throughout the budget process.’’

Adam Joseph, a spokesman for the Senate Democrats, said, “We welcome the input of Mayor DeStefano and other mayors and first selectmen.  They have raised some important points, and they continue to highlight important issues that will confront us throughout this budget process.”

Back in New Haven, DeStefano has offered three different budget alternatives – all with tax increases. One budget, which included a tax increase, assumed that the city would receive the same amount of money from the state that it received this year.

One Capitol insider was not sympathetic to DeStefano’s plight and that he should not be blaming the state for the proposed tax hikes.

“One option that he would get a candy cane wish list from the state, a pipe dream by the best of standards, and even then, he raises taxes,’’ the insider said. “Even if he gets his Sweet 16 birthday party wish list, he’s still raising taxes. There is no effort on his part to find savings.’’

But DeStefano had nothing good to say about Malloy’s budget.

“Is this the year to transfer – in my community’s case, $15 million, and in the state’s case, nearly $600 million – in what I would suggest is not as well-thought-out a program as we could have?’’ DeStefano asked. “There are two other costs to this. It’s all the folks who will lose the property tax credit on the state income tax because of this. Connecticut stands to lose $100 million of deductibility in returns from the federal government when we file our tax returns and we take car-tax deductions on it.’’

Finley said, “There’s no question that the governor’s budget proposal profoundly and negatively changes the funding relationship between the state and cities and towns.’’

But the top mayors have still not met with the governor or his budget director since the fiscal plan was presented.

“We haven’t – because it’s the legislature’s budget right now,’’ Finley said. “The governor has made his proposal. We think there’ll be an opportunity to have those discussions with the governor’’ and the budget director in the coming months.

“The macaroni,’’ DeStefano said, “is still cooking.’’