A spokesman for the biggest municipal lobby said Monday that he doesn’t expect a proposal to eliminate the car tax this year, but it would be nice if lawmakers decided to distribute some excess revenue to cities and towns.
The Connecticut Conference of Municipalities “is calling on the General Assembly to maintain and if possible expand state aid commitment to cities and towns,” Kevin Maloney, a spokesman for the group, said Monday.
If there’s an opportunity to do more with about $940 million in excess revenues reported this month by budget analysts, then Maloney said he would like to see the money applied to the PILOT [Payment-in-lieu-of-Taxes] program or additional education aid.
Last year, Gov. Dannel P. Malloy level-funded the Education Cost Sharing grant, which is typically the biggest grant cities and towns receive from the state. However, municipalities have argued for years that the formula is underfunded to the tune of more than $1 billion.
The Connecticut Conference of Municipalities is calling for an increase in the ECS foundation level to reflect the actual cost of educating students. It also wants the legislature to phase in full funding of the formula over a period of time. Some members of the municipal organization are calling for these changes to be made through a landmark school funding lawsuit expected to go to trial later this year.
Malloy may have appeased municipalities last year by level-funding education, but he also disappointed local elected officials by proposing to eliminate the local car tax, which brings in about $700 million in revenue to municipalities.
House Speaker Brendan Sharkey later proposed phasing out the current system where cities and towns charge different mill rates and replacing it with a statewide car tax, but there wasn’t enough support in the Senate for the idea and it died.
In the meantime, Sharkey’s Municipal Opportunities and Regional Efficiencies Task Force has been meeting to discuss ways it can lower property taxes by regionalizing certain programs and services. They are expected to wrap up their work before the end of February.
But Maloney said he doesn’t expect a proposal to eliminate the local car tax this year.
He said local elected officials are calling on the legislature to postpone debate over eliminating the car tax until the Department of Revenue Services finishes its tax incidence study. The study is expected to be released in December 2014.
“We’re hearing overall what’s being provided to towns will be protected,” Maloney said. “But we haven’t seen the governor’s budget.”
Malloy will unveil his budget on Feb. 5.
During the first few weeks of the legislative session CCM is hoping the state will send the $12.7 million in last quarter payments to the Municipal Revenue Sharing Account to the cities and towns. The state budget last year inadvertently cut the program short before making the last payment.
“We have a commitment that last payment will be made, hopefully, in the first few weeks of the session,” Maloney said.
He said cities and towns also would like to see that program restored because it was one of the few unrestricted pots of money municipalities receive. The money for the grant program came from the 2011 increase in the state sales tax. It was reclaimed by the state in an effort to balance the 2013 budget.
“CCM urges the governor and the General assembly to stay the right course and continue to avoid balancing the state budget on the backs of municipalities and their property taxpayers,” Ron Thomas, CCM’s director of public policy and advocacy, said.
CCM represents 156 cities and towns.
Malloy declined to comment directly on what municipalities can expect in his budget adjustment, but he talked generally about how he goes about the process of budgeting.
Support authentic, locally owned and operated public service journalism!
Starting with his first budget, which increased taxes and asked for concessions from state employees, Malloy said Monday that he “required shared sacrifice.” But since that time things have started to turn around and those constituencies that sacrificed during those first two years, should maybe see some relief.
“We’re perhaps turning a corner and seeing some growth,” Malloy said. “Those who have sacrificed, their needs need to be taken into consideration in light of where we are. But I’ll speak to that in more specific terms in the coming days.”
More State Budget news

Lamont Signs Another 24 Bills Monday
Gov. Ned Lamont signed another 24 bills Monday, including one that changes what police have to do to inform a family after the death of a loved one, and one that increases funding for children’s mental health.
Keep reading
Stefanowski Talks Abortion, Employee Raises & Budget In First Press Conference
For a half-hour Wednesday, Bob Stefanowski stood outside the state Capitol and fielded questions on abortion rights and state employee raises in a sign the Republican candidate plans to run a more conventional campaign in this year’s rematch with Gov. Ned Lamont.
Keep reading
Lamont Signs The Budget
Alongside Democratic legislative leaders, Gov. Ned Lamont signed the $24 billion budget adjustment Monday that includes $600 million in tax relief. That’s more than they anticipated they would be able to offer Connecticut residents this Election year because revenue came in higher than expected, but it still creates about an $800 million deficit in 2024. …
Keep reading
ANALYSIS | It’s A Wrap: The Winners and Losers of the 2022 Session
It was a short legislative session, but the House and the Senate were able to move a lot of business this year, including the passage of a $24-billion budget with around $600 million in tax cuts.
Keep reading
Connecticut Acts To Help Its Lead-Poisoned Children
After decades of inertia, Connecticut is finally moving to help its thousands of lead-poisoned children and prevent thousands of other young children from being damaged by the widespread neurotoxin.
Keep reading
Bill Bolstering Contracting Oversight Board In Jeopardy After Lamont Administration Raises Concerns
It passed unanimously in the Senate, but a bill that would give the State Contracting Standards Board greater oversight over state contracting appeared stalled in the House Wednesday on the last day of session. “The governor and I have not talked about the bill,” House Speaker Matt Ritter said. “The commissioners have sent us a…
Keep reading
Senate Approves Tax Cuts, Sends $24B Budget to the Governor
The state Senate gave final approval late Tuesday to a $24 billion election year budget plan that includes around $600 million in tax relief while enabling the state to make an $3.5 billion payment on its unfunded pension debt. Senators voted 24-12 at around 10:30 p.m. to send the midterm budget adjustment to the desk…
Keep reading
House Green-Lights $24B Budget
On a party-line vote early Tuesday, the House passed a $24 billion budget adjustment package containing more than $600 million in tax cuts which Democrats heralded as “historic” and Republicans derided as temporary. Lawmakers voted 95 – 52 at around 12:20 a.m. to send the 673-page budget document to the Senate for consideration before the…
Keep reading
Budget Materials
The General Assembly is preparing to debate adjustments to the $24 billion state budget. Below are a few of the documents we’ve been provided as back-up materials. The budget, HB 5506. Town runs. Car tax impact on municipalities. Finance Committee Power Point.
Keep reading
Lawmakers May Vote for First Pay Increase in 20 Years
With legislative retirements mounting, lawmakers on both sides of the aisle were considering Monday raising the salaries of General Assembly members for the first time in more than two decades and indexing their pay in the future. During a morning press briefing, House Speaker Matt Ritter told reporters that funding for pay raises had been…
Keep reading
Amid Surging Revenue, House Prepares to Vote on Budget Adjustments
Connecticut’s House of Representatives was expected to vote Monday on a $24 billion budget adjustment package, buoyed by revised revenue predictions that exceeded expectations by more than $350 million. The revised consensus figures released Monday confirm the surge in revenues that enabled Gov. Ned Lamont and legislative Democrats to reach an agreement last week on…
Keep reading
Dems Detail Budget Deal With $500 Mil in Tax Cuts, Extension of Gas Tax Holiday
Legislative Democrats and Gov. Ned Lamont’s administration announced Wednesday the details of a $24.2 billion budget adjustment package, which they say provides around $500 million in tax relief including extending a gas tax holiday until December. Lamont and legislative leaders outlined the agreement during an afternoon press conference in the state Capitol building. Both chambers…
Keep reading
Health Care Workers Call for New Hires
After a record number of health care workers are expected to retire this year, health care staff called on Gov. Ned Lamont to commit to filling 1,000 vacant positions by August 1 of this year. A record 1,137 state workers who notified the state that they will retire this year comes at a moment of…
Keep reading
Senate Joins House And Votes To Give Raises, Bonuses To State Employees
The Senate gave final approval by a 22-13 vote on a plan to give unionized state workers a set of raises and bonuses. The plan, negotiated by Gov. Ned Lamont’s administration and a coalition of public sector labor unions, provides three years of 2.5% raises and step increases as well as a total of $3,500…
Keep reading
House Advances Labor Deal In Historic Vote
Lawmakers in Connecticut’s House of Representatives signed off on a plan to give state workers a set of raises and bonuses Thursday in a mostly partisan vote on a negotiated labor agreement. The House voted 96 to 52 in support of the deal with 1 Republican, Rep. Tom Delnicki of South Windsor, joining all Democrats…
Keep reading
Republicans Propose Last-Minute Tax Package
Legislative Republicans pitched a $1.2 billion tax relief plan Thursday which reduces state income, sales and gas taxes and proposes to join other states in suing the federal government to challenge restrictions on spending pandemic relief funds. House and Senate Republicans announced the plan during a state Capitol press conference Thursday morning. It cuts the…
Keep reading