On the heels of a new report from the Connecticut Conference of Municipalities (CCM), Governor Dannel P. Malloy announced January 31 that the state budget proposal he will release next week includes substantial state mandate relief for towns and cities across Connecticut. The governor explained that these proposals will provide municipalities with greater flexibility and additional tools for making local government leaner and more cost-efficient.

This mandate relief package is designed to increase local control over budgets and contracts, keep down project costs, modernize out-of-date requirements, and remove unnecessary red tape. The news was well-received by First Selectman Pat Llodra.

"This is an excellent beginning to what I hope is an ongoing, robust, and comprehensive review of mandates followed on by appropriate modifications that reduce municipal burdens," Mrs Llodra told The Newtown Bee shortly after the governor's announcement. "Municipal leaders have been calling for action on mandates for years."

To date, there have been several efforts in the state to study municipal mandates, and recommendations offered by various municipal organizations and state commissions on the topic. Many of those recommendations will be included in the governor's upcoming Fiscal Year 2018/2019 budget proposal.

"True partnerships are built on listening to the concerns and responding to the needs of the other party," Gov Malloy said. "Given the challenges we face in balancing the budget in the next biennium, the state and local municipalities must continue to strengthen our working partnership - and in some respects, begin to redefine this relationship."

Gov Malloy continued, "My administration has heard local leaders loud and clear - they are asking for a reprieve from onerous state requirements and for the removal of burdensome red tape. The budget I will present to the General Assembly next week will provide greater flexibility in the areas cited most frequently in need of mandate relief by municipal leaders, organizations, and state commissions."

Among other mandate relief proposals, specific provisions will:

*Eliminate municipal spending cap for most municipalities.

*Provide for the random selection of neutral arbitrators and the use of a single neutral through an agreement of the parties in the binding arbitration process.*Allow towns to negotiate employee contributions under the Municipal Employees Retirement System.

*Exclude 2017 state aid increases from collective bargaining ability to pay consideration.

*Increase the prevailing wage threshold for the first time since 1991 to $1 million for new construction and $500,000 for remodeling.

*Eliminate the requirement for superintendents in small school districts and communities, and remove the three-year limitation on superintendent contracts.

*Provide that every town in a regional school district, including prospective regional relationships, will receive the Education Cost Sharing aid ratio of the town with the highest ratio in the region, under certain circumstances.

*Foster flexibility for school districts on curricular instruction and professional development.

*Ease the process for temporary certificate holders to teach in local schools.

*Allow for flexible town assessment rates, with Office of Policy and Management approval.

*Increase antique car assessment cap to $1,000 for vehicles less than 30 years old.

*Defer the Connecticut Commission on Human Rights and Opportunities (CHRO) municipal mandate.

*Allow CHRO respondents to opt out of mediation.

*Increase town clerk preservation fees and remit larger portion of revenue to municipalities.

"We all know that change is hard - many of these mandates have been on the books for quite a long time," Gov Malloy said. "But it is our responsibility to routinely review and identify what is working and what is hindering our ability to deliver the best service to the people of our state. We can provide relief to our towns and cities - and this proposal is a significant step in that direction."

Zeroing In Locally

The first selectman explained how some specific points among those proposed will be of particular benefit to Newtown.

"The spending cap was ill-conceived and needed to be abandoned. Newtown's spending plan would probably not have been affected as the cap was to be set at 2.5 percent, but the idea that the state government - which never implemented its own cap - would lay this control on municipalities while at the same time reducing state aid was unconscionable," she said "And, further, the cap would disenfranchise municipalities from their right to set their own spending plan, no matter the level of increase."

Regarding the prevailing wage proposal, Mrs Llodra exclaimed: "Finally... reason prevails! The arguments for change in prevailing wage have been part of my mantra and efforts with legislators for eight years. There is no reasonable defense to keep levels where they are - the arguments of the 'no change' group do not have merit when examined through the lens of today's economy and financial circumstances."

She also commented on the following points in the governor's proposal:

*On town clerk fees: "Again, probably not a huge financial gain for Newtown, but an appropriate change nevertheless. I would want to be careful, however, in controlling the level of increase in any such fees."

*Regarding the CHRO mandate: "Yes... absolutely. I think this mandate, although well-intentioned, cannot go forward during these times of financial stress. The true cost has never been explained or explored and the merits are questionable."

*On the issue of the antique car assessment: "Yes... appropriate to make this change. Not a huge money boost for Newtown, but the change is the right thing to do."

*Regarding flexible assessment rates: "Interesting - I will want to know more about this in terms of its impact on Newtown."

*On the collective bargaining exclusion: "Yes. Ability to pay as a factor in collective bargaining should not be influenced by state aid. State aid, in and of itself, is a measure of need; is variable; is unreliable - and should not influence negotiations."

*Regarding collective bargaining arbitrators: "Yes - controlling costs for arbitration panels is appropriate and needed. Use of a single neutral is a reasonable approach."

Mrs Llodra said Newtown taxpayers will be the ultimate beneficiaries of this relief, if the governor's proposals are ratified.

"The stranglehold of unreasonable expectations and requirements has taken scarce resources away from our towns and has added to the burden we place on local taxpayers," the first selectman said. "Finally, our voices are being heard. It is unfortunate that a state-level fiscal crisis was needed for mandate relief to get the attention it needs, but now that we are here, let's do mandate change well and thoroughly."

CCM Report Details

On January 25, the CCM released a major new report on a "new way forward" for Connecticut cities and towns that represents significantly new and different thinking by Connecticut municipalities. Some new municipal tools that the report calls for include:

*Removing service sharing arrangements as a subject of collective bargaining; state law should be changed so that interlocal agreements or service sharing contracts involving two or more municipalities will override any participating municipality's charter.

*Allowing general government more control over education expenditures and boards of education; and amending the Municipal Employee Retirement System (MERS) to establish an additional retirement plan for new hires.

*Expanding the sales tax base by repealing 10 percent of the exemptions for selected consumption categories; reducing the state sales tax rate by 0.75 to 5.60 percent; and levying a statewide local sales tax at the rate of one percent.

*Changing state law and permit municipalities to require ongoing fees for the use of the public rights of way.

*Requiring property owners of properties subject to state payment in lieu of taxes (PILOT) reimbursement to pay the difference between the state's statutory PILOT rate and the amount towns actually receive in state PILOT payments, up to 20 percent of the mill rate.

*Requiring property assessment services be consolidated and/or shared in Connecticut regions for assessment offices servicing less than 15,000 parcels.

Gov Malloy will present his full state budget proposal on February 8 during an address to a joint convention of the Connecticut General Assembly.