The Proposed Budget

Is Fair

To The Editor:

As a Legislative Council member, I have listened to the discussions regarding this year’s budget and the impact of revaluation on our taxes. I believe we need to separate these two issues. Revaluation, mandated by the state every four years, serves the purpose of distributing taxes fairly based upon comparative property values. Local realtors have validated that the new property valuations reflect true market values, with the lower valued properties in Newtown having the most significant increases. This is because these homes are in high demand in the expensive Fairfield County housing market. We may not agree with this process, but we cannot change its impact on this budget process.

After the recent cuts, the total budget is up 3.2 percent ($2.4 million). State aid is down 6.3 percent ($1.07 million). The resulting average increase in taxation is 5.9 percent ($3.5 million). I developed the following summary regarding the causes of the increase in taxation and presented it at our council meeting several weeks ago.

The first significant item is the decrease in state revenues of $1.07 million. This loss alone causes a tax increase of about 1.8 percent, even if the budget had no increase. Second, salary increases structured into the contracts of both town and school employees total $2.23 million and cause a 3.7 percent increase to taxation.

The third item is the annualizing of costs for the new Reed Intermediate School. When the town voted to build the 5/6 school several years ago, we knew that operational costs for the school system would increase. Because the school opened in January, we only included six months worth of costs in the current budget. Next year we must budget for the full year of operating this school. This additional half-year of expenses totals $1.11 million, resulting in another 1.8 percent increase in taxes.

These three items account for a $4.51 million increase in taxation from the current budget (7.3 percent). Because no new programs have been added to either budget, the rest of the budget is down $870,000. Specifically, the remainder of the selectman’s budget is down $1.6 million (five percent). The remainder of the school budget is up $746,000 (1.6 percent); a modest increase considering the school system is projected to add another 171 students (3.3 percent) next year.

My message here is that although there is an increase in taxation of 5.9 percent, I want to assure you that this is a fair budget. Property revaluation has exacerbated the tax increase for many residents. To determine your total tax burden, you would multiply the assessed value of your home and cars by a new proposed mill rate of 23.6.

I believe that there was no “fat” in the budget submitted by the Board of Finance. I voted for the recent cuts of $1 million as a compromise to the much larger cuts suggested. I believe that, even in tough economic times, we must have a vision for our town and make choices to pursue that vision. I believe that these significant cuts will impact the services this town offers its residents. I understand that taxes have increased in recent years, but believe it is a result of reductions in state aid and exorbitant increases in items such as insurance, medical, and energy costs; not out-of-control spending. I will support legislation such as tax deferrals to help certain residents who need tax relief. However, these programs will not resolve today’s issues. Neither will another failure of the budget vote.

I encourage you to support this budget. Please vote Yes.

Sincerely,

Mike Iassogna

Legislative Council Member

42 Brookwood Drive, Newtown April 30, 2003