September 22, 2008
The Honorable M. Jodi Rell
Governor of Connecticut
Executive Chambers
State Capitol
Hartford, CT 06106

Dear Governor Rell:

CCM commends you for your prompt responses to Connecticut’s growing state budget deficit. As part of your response, you have called on state leaders to convene meetings regarding the ominous budget forecast, and come up with possible state budget cuts.

The Connecticut Conference of Municipalities urges you and state legislative leaders to take municipal aid cuts off the table. Transferring the burden of a state deficit onto the backs of local governments and property taxpayers is a false economy. Such action would constitute a tax shift from the state level to the local level.

You have pledged to "not allow Connecticut to tax its way out of this year's budget deficit." As the discussion on budget cuts begins, let it be clear that reductions in state aid to municipalities would result in tax increases - local property tax increases.

As you know, towns and cities are not special interest groups. They are partners in government with the State of Connecticut. CCM asks that priority should be given to protecting our hometowns’ ability to provide the services we all rely upon. Any proposals to chop municipal aid would be smoke and mirrors – it would simply shift the fiscal ramifications of the State’s deficit onto the front steps of town halls across Connecticut, and the backs of residential and business property taxpayers.

Difficult economic times require a strong local-state partnership. Skyrocketing costs of energy, healthcare and education - coupled with suffocating state mandates - have already forced local officials to make tough taxing and spending cut decisions at the local level. Our largest and poorest cities have been particularly hard hit.

From expenditure and hiring freezes to layoffs and emergency usage of fund balances – the current economic climate is taking its toll on local budgets, programs and services.

Let's not repeat the disastrous mistakes of 2003 when municipal aid was cut in mid-year, in some cases never to recover.

CCM calls on State leaders to stand up for their hometowns and make state aid to municipalities a priority - during the good times and the bad.

Thank you for your consideration.

James J. Finley, Jr. Executive Director & CEO Connecticut Conference of Municipalities

Hon. Elizabeth C. Paterson Mayor of Mansfield and President of CCM