Date: Fri 11-Jun-1999

Publication: Bee

Author: STEVEB

Quick Words:

state-aid-budget

Full Text:

Newtown Gets More State Aid Than Expected

BY STEVE BIGHAM

Newtown will receive $6.7 million in state aid in the 1999-2000 budget --

nearly $250,000 (3.7 percent) more than what it received this year. It's also

about $300,000 more than had been expected.

The state legislature passed last Friday night a $23.78 billion, two-year

budget with more aid for schools and towns, $273 million in tax cuts and $50

rebate checks for most state residents.

Lawmakers' support for the package was helped by a strong state economy and

robust stock market, which drove the tax surplus above $550 million.

Under Gov John Rowland's original proposed budget, Newtown was due to receive

even less money than what it currently receives. However, the final state

budget saw a major increase in grant money to Newtown.

The biggest jump, $407,000, came in the form of Payment in Lieu of Taxes

(PILOT) funds -- money the town receives for hosting state facilities at

Fairfield Hills and the Garner prison. Town officials anticipated PILOT funds

would bring in $1.3 million, but they will actually bring in $1.7 million.

The total amount to Newtown would have been much higher -- another $214,000 --

had legislators opted to go along with Gov Rowland's plan to give towns money

from a recent tobacco settlement.

Nevertheless, the potential impact on revenues for the town's 1999-2000 is

$300,000 more than what the Legislative Council had expected when it finalized

the budget earlier this spring.

Newtown will also receive $3.9 million in education funds, $67,000 more than

is currently allocated and $98,000 more than the governor's proposal.

"Anytime we get more money than we anticipated it's good news," said First

Selectman Herb Rosenthal.

The proposed increase in state aid to municipalities first came up in both the

appropriations and education committees of the General Assembly.

"There was a lot of lobbying going on from what I understand," Mr Rosenthal

said. "PILOT funds went up [across the state] because they decided to fund at

the levels they funded previously. There was a big surplus."

Hindsight

In an effort to keep the tax rate at a reasonable level, the Legislative

Council was forced to make significant cuts to both the Board of Education and

library budgets earlier this spring. Legislative Council chairman Pierre

Rochman said in retrospect, the council would have probably given the school

and the library more money.

"I do want the council to look at ways we may be able to help those two

entities. Both took a decent cut in terms of what they requested," Mr Rochman

said.

In order to spend that money in this year's budget, however, the council would

need to make a special appropriation. Or, it could use the extra revenue as

audited surplus for the future.