Town Meeting Tuesday, May 20––

 Third Budget Proposal Includes Elderly Tax Relief

By Dottie Evans

After two defeats at the polls, a third 2003–2004 budget proposal in the amount of $79,437,162 is on the table for consideration by taxpayers at an upcoming town meeting scheduled for Tuesday, May 20.

The Town Meeting will be held at 7:30 pm in the auditorium of Newtown High School.

The $79.4 million proposal was drafted by the Legislative Council May 8 after council members heard public comment and considered how and where additional cuts to the town and education budgets should be made.

If this latest budget proposal passes, the mill rate would be 23.4.

At the same time that the voters prepare for Tuesday’s special town meeting, some individuals are circulating petitions for a third machine vote or referendum. If a sufficient number of names are gathered before the cutoff date Friday, May 16, at 4:30 pm [which is after this issue of The Bee goes to press], a machine vote on the $79.4 million budget proposal would take place on a later date.

A total of 726 valid signatures are needed for a successful petition, which represents five percent of the total number of registered voters in the town.

Legislative Council Sets New Figure

The Legislative Council met May 8, two nights after its second proposal at $79.7 million was defeated by a margin of 160 votes, and they took what they considered would be significant action on two fronts –– budget reduction and tax relief for the elderly.

During the period for public comment, several residents spoke in favor of elderly tax relief.

Frank Gardner of 6 Surrey Trail asked the council to keep in mind what happens when a longtime owner of a smaller, single-family home is forced by high taxes to leave town.

“Everyone knows people who are moving down south because they can’t afford to live here anymore. For every family forced out of town, a new family moves in with two children,” he said.

That would mean, Mr Gardner said, where the town might get $3,000 in taxes from the previous homeowner without children, the same taxes would be paid by the new family but the town would have to put out $18,000 to educational support for the children (assuming an average per pupil cost of $9,000).

“It comes down to money and priorities,” he added.

“We need to have rebates, or a way to keep these people in town.”

Mike Gates asked the legislators to think about ways to “shift the burden,” so those with children in the schools could do more and those on fixed incomes who are having trouble paying their taxes could be helped.

Like Mr Gardner, Mr Gates noted, “Everyone moving into this town is moving here with kids.”

A woman living on Cornfield Ridge spoke in favor of finding a way to help the senior citizens stay in town, saying, “The seniors with their long history are what makes this town what it is.”

Mike McCabe hoped the council would keep in mind the narrow margin of defeat at the last referendum when deciding on a new bottom line. He also asked town leaders to continue to look at the open space bond referendum proposal and economic development as ways to offset growth and bring in additional revenue.

“I hope we can give tax relief to senior citizens. The reality is we need to keep them in town for diversity and balance,” he said.

A Ten Percent Increase In Tax Rebates

Legislative Council Chairman Don Studley was ready to respond to these concerns, especially after a second budget defeat.

“I assumed that it is necessary to adjust the budget downward. We must look at both the town and education sides and we also need to look at tax credits for the elderly.”

It was both a statement of the obvious and a challenge to mitigate the difficulties suffered by Newtown residents on fixed incomes who cannot afford to continue paying rising taxes, especially in a reval year and under a failing economy.

Accordingly, Mr Studley presented the council with a list of action items including proposed budget reductions, as well as increases in tax rebates for elderly residents over the age of 65 who fall in either of two income brackets: Those earning $35,000 per year or less; and those earning between $35,000 and $55,000 a year.

Currently, by state statute, residents in the lower bracket receive a rebate of $1,075 on their taxes, and those in the higher group receive $636.

 Mr Studley recommended that the rebates in both categories be increased by ten percent. This would mean raising the total cap on amount of money the town will give for elderly rebates from $401,000 to $495,00, he said.

“If we do this, we’ve just raised our taxes by $94,000,” council member Peggy Baiad pointed out, but she supported the motion made by member Amy Dent to increase rebates to the elderly. The motion passed the council vote unanimously, 11-0. The 12th member of the Legislative Council, William Meyer, was absent.

It is expected that the increase in revenues from the addition of $376,000 from the state legislature will help offset the cost of the additional elderly rebate money.

More Cuts To Town And Education 

Prior to the meeting, First Selectman Herb Rosenthal had given Mr Studley a proposed “Cut List” totaling $104,800. A part of these cuts included a $60,000 reduction from the police department account that could be realized by not filling three vacancies, a $21,000 reduction from the highway department if one vacancy were not filled, an $18,000 savings in liability insurance, and a $5,000 reduction from the town clerk’s budget if new shelving were not installed.

Council member Tim Holian moved to decrease the selectmen’s budget by $104,800 following Mr Rosenthal’s potential reduction sheet recommendations. Adding those cuts to previous reductions already made brings the total town budget to a 4.2 percent decrease over last year’s amount.

The motion to cut the selectman’s budget by $104,800 also passed unanimously, 11-0.

One member of the audience asked whether the town could expect any additional aid from the state over the $376,000 in revenues already allocated by the state legislature.

Representative Julia Wasserman, who attended the Legislative Council’s  May 8 budget meeting at the Senior Center, spoke to the audience about the state budget.

“Don’t count on any increase in support to the towns,” she warned.

“We’ve already got an $800,000 loss. We are the 12th wealthiest town in the state out of 169 and that means our revenues will drop.”

On the education side of the town’s 2003–2004 budget proposal, a motion by council member Francis Pennarola to cut $104,800 from the school budget –– the same figure as had just been cut from the town –– was defeated by 7 to 4 votes.

Mr Holian then moved that the council consider a previous motion to cut $200,000 from the education budget and this motion passed 9-2. Mrs Dent and Francis Pennarola voted against the motion.

“It’s too much!” said Mrs Dent.

Mr Pennarola said he was, “concerned with the magnitude of cuts,” already made.

The education budget had already been reduced $400,000 by the Board of Finance and $775,000 by the Legislative Council. With $200,000 more being cut on this most recent go-round, the total reductions suffered by the schools in the 2003–2004 budget proposal equals $1,375,000.

This means the school’s budget request represents a 6.7 percent increase over last year’s amount.

Before the final votes were taken, audience member Kelly Cameron of Huntingtown Road read a statement she had prepared ahead of time, asking the council not to make additional cuts to the education budget.

“Remember, every time you make a cut you are taking away something from our schools. Remember us, the children of Newtown.”

School Board Chairman Elaine McClure asked council members to remember, “the reason we are here is for the education of the children. I hope the cut tonight is as minimal as can be.”

An older student, Sarah Hemingway, responded to one audience member’s criticism of alleged support by the school board for activities and sports as a way to fill in the gap when students do not respond in an academic classroom environment.

“I don’t go to school just to play a sport. I would say that my grades are high, but [I would also say] that sports are a big part of my life at school. And if they’re not there, it’s going to make it so much more difficult.”