YourCT.com header image 2

Rell’s Budget: Yipes!


by turfgrrl


February 8th, 2007 · 4 Comments

This week the Berlin Film Festival is abuzz with the talk about a new film about Edith Piaf, La Vie En Rose (la mome). Piaf’s signature song could well echo the thoughts behind Governor Rell’s budget preparation. “Non, je regrette rien.”

Rell’s vision for the next 20 years is to fix Connecticut’s creaky educational system by throwing money at it. Tackling the ECS funding formulas is admirable, and elevating education to a spending priority, or as Rell puts it, as an investment, is courageous. But is throwing money at Education really going to change anything for the better? It may seem so, if you are a municipality only able to get revenue from residential property. But as long as local school boards continue unchecked spending, it doesn’t solve the issue of smarter spending and gaining operational efficiencies.

Rell’s plan is to raise the income tax. Which too the average Connecticut Tax payer would just add another burden to the already high cost of living in Connecticut. It’s not as if municipalities will lower property taxes they already collect. Sure, education spending on the part of the municipality may be less of a percentage, but its more likely that money will be redirected to the other basics of municipal spending like potholes.

Raising the income tax, while pitching the elimination of the estate tax and the car tax does seem like tax rearrangement to the order of having the middle class pay more than its fair share. Most estates, don’t pay the estate tax, it’s just the super rich ones that run out of tax shelters that end up paying it. While I’m a fan of eliminating the car tax, which is one of the most unequal taxes levied in the state, it doesn’t do any good to raise taxes off people who might not own cars as well.

Both Republicans and Democrats in the legislature will have problems with Rell’s budget plan, but it’s sure to generate debate.

Tags: Economy · In the News

4 Responses so far “Rell’s Budget: Yipes!”



  • 1 Don Pesci // Feb 8, 2007 at 8:43 am

    “…but its more likely that money will be redirected to the other basics of municipal spending like potholes.”

    Not necessarily. The additional funding will relieve pressures on municipalities to cut back on spending (no more embarrasing referendums, which is why municipalities like the plan. Relieved of the pressure, they will use the funds for usual purposes; the bulk of it will be spent on educational salaries.

  • 2 turfgrrl // Feb 8, 2007 at 10:05 am

    I suppose that depends on the municipality. In Norwalk, I suspect that spending will just be reallocated, since the burden of funding our educational system (70%) of the municipal budget, consistently causes other things to be deferred. Chiefly, sewer system and sewage treatment plant over hauls.
  • 3 GMR // Feb 8, 2007 at 9:30 pm

    I’d be very surprised if any municipality actually collected less in property taxes after this income tax goes into effect. (I’m talking about taxes collected, not mill rates, since assessments can cause mill rates to decline).

    Every municipality seems to have a long wish list of projects. In Greenwich, it’s the high school auditorium. Here in Ridgefield (highest per capita debt in the state!), people want to build an outdoor municipal pool. In other places, it’ll be new police stations, fire engines, roads, municipal parking lots, town halls, new science labs at the school, and so on. I would imagine that if municipalities get more funds from Hartford, they’ll start spending on these other things.

  • 4 turfgrrl // Feb 9, 2007 at 9:58 am

    GMR-I agree, I don’t see any municipality reducing the amount of property taxes collected.