February 19, 2007

Who would have thought that a historically conservative Republican Governor would propose such dramatic initiatives for education AND call for a 10% increase in the income tax to pay for it?  Very few Republicans, and certainly not the Killingworth Republican Town Committee, are in favor of sending more money to Hartford without an iron-clad guarantee that it would not be poorly allocated by the state legislature controlled by the big city Democrats.

While the objectives outlined in the Governor's budget are admirable, the approach she proposes is misdirected and is not what is really required.  Let us look at a few indisputable facts:

Connecticut is losing population especially the young and the old.

The truth is, most young people cannot afford to live in places like Killingworth or other suburban communities and do not want to live in our economically challenged cities.

Seniors are being driven from their homes by high property taxes, high income taxes, high estate taxes and a generally high cost of living when compared to our warmer neighbors to the south and west.

Dramatically more spending on education will not solve our long term problems with economic growth and declining cities.

The State, using our tax dollars, provides the majority (roughly 60%) of the funding for schools in our cities.  The federal government provides another 12%. Total per student expenditures in our cities are at least equal to or in some cases exceed spending in suburban and rural areas. Even with this aid drop out rates are more than twice the statewide average and academic achievement is approximately half the state average. The problem is far more fundamental.  Without economic revitalization of our cities, we are doomed to fail the children whom we seek to help.  Without hope for a job, there is little motivation to study.  A resurgent economy in our cities brings jobs, bolsters families and improves housing reversing the decline of our cities. 

With regard to the other increases in educational funding, we fear that without addressing the health of our business and industry, we will be merely educating our kids to go and work outside Connecticut where there are career opportunities and an affordable quality of life.

Burdening communities with high property taxes is bad public policy

Heavy reliance on property tax leads communities to make poor land use and zoning decisions to increase revenues.  We see sprawl, such as strip malls, higher density housing, Big Box stores and fewer open space set asides, in too many communities across Connecticut.  "Smart Growth" development is abandoned as unaffordable as these communities just try to keep their financial heads above water.  Communities that provide incentives for business to move out of our urban centers exacerbate the problem.

The incentive for supporting her plan is the hope for property tax relief.

Based on numerous media reports, you may be under the impression that the State is currently reimbursing educational costs at something approaching 40%. That is an average and a political smoke screen for being the real cause of the property tax crisis in communities like ours.  The actual percentage in Killingworth is approximately 13%.  If in fact we were getting the widely reported 40%, our mil rate would be almost 10 mils lower.  If these new taxes move the state-wide average from +/- 40% to 50% what does that mean for Killingworth?

Even if, on balance, the trading of income tax dollars for property tax was a "good" deal for the average taxpayer in Killingworth, it does nothing to fix Killingworth's fiscal problems in the aggregate.  Besides, what guarantee do we have that some future legislature will not sell us up the river AGAIN?

We have two suggestions:

Let us be clear to our elected representatives in Hartford (Mr. O'Connor and Mr. Meyer) that more taxes are not the solution. We should remember that Senator Meyer has specifically run (twice) on fixing the education/property tax nexus.

If they cannot buck their party on increasing taxes then at the very least they must get us an absolute guarantee to unwind the taxation if the State goes back on what ever formula is used to coat this bitter pill.

Will the real fiscal conservatives please stand up!

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Please send questions or comments to the Killingworth Republican Town Committee via communications chairman, Lynne Baron, at baronart@comcast.net  - www.killingworthrepublicans.org