Date: Fri 17-Apr-1998

Publication: Bee

Author: STEVEB

Quick Words:

council-budget-state-aid

Full Text:

State Aid Windfall Eases Budget Pressure

BY STEVE BIGHAM

The Legislative Council had the rare opportunity Tuesday night to pass out

what amounts to new-found money.

Newtown is slated to get a $592,000 windfall in state aid, money town

officials had not anticipated a month ago.

In response, the council agreed Tuesday to add an additional $75,000 to the

Board of Education's proposed budget. The extra money is expected to be used

to hire two new middle school teachers, according to school board chairman Amy

Dent. Those new positions had recently been scratched by the school board

after previous education cuts by the council.

"I'm thankful we got something," Mrs Dent said this week. "I don't know if

$75,000 will be quite enough to hire the two new teachers, but we'll find a

way."

Where did all this unexpected money come from? The state has found itself with

what may amount to a $300 million budget surplus this year, a gubernatorial

election year, and has opted to pass the extra money on to the municipalities.

Newtown expects to receive an additional $437,000 from the state's Payment in

Lieu of Taxes (PILOT) program (for Fairfield Hills), an extra $72,000 for road

repairs, and another $82,000 for educational cost sharing.

Finance Director Ben Spragg said he first heard the news late last month.

Originally, the town had based its revenue for 1998-99 on Gov John Rowland's

recommendation to the General Assembly. Now, the assembly's own Appropriations

Committee has made a different recommendation, which should bode well for

local taxpayers.

Of the remaining state aid, $72,000 will go toward local road repair and

$445,000 will be put into the town's capital, non-recurring reserve account

for future use.

Last month, the Legislative Council cut $800,000 from the Board of Education's

$3.1 million proposed budget increase. The move angered school supporters.

However, the net effect of the school budget reduction has now been reduced to

about $200,000 -- the school board has agreed to lease $400,000 worth of

technology equipment with the first payment not coming until next year, the

council has agreed to fund an additional $125,000 for HVAC work at Newtown

High School through the town's capital non-recurring account, and now this

extra $75,000.

Finding Uses

The council's finance committee met in the middle school auditorium prior to

the council meeting Tuesday to discuss what to do with the additional state

aid. Selectman Joe Bojnowski suggested using the money to reduce the mill

rate, but Donald Studley argued against such a move.

"I'm not sure we should do anything with it because it is just an estimate. We

could get ourselves into a hole if we use it to reduce taxes," he said.

Melissa Pilchard agreed, saying money put in the reserve will be there

whenever the town needs it. There are projects coming down the pike.

Mr Rochman also felt the money should be moved to the reserve, although he

said it would be nice to have a "less than a mill rate increase."

"We really haven't talked about a zero mill increase in a long time," he said.

"It shouldn't necessarily be looked at as a miracle."

Karen Blawie felt the council should spread some of this "gravy" around,

especially to the school board. It's only fair, she said.

John Kortze said by giving $75,000 to the school system and putting the rest

in reserve, the town still moves "south" on its overall budget.

"I think there is merit to sharing," he said.

Mrs Pilchard reluctantly gave in. "But if you need the teaching positions so

bad, why the $16,000 for choral uniforms?" she wondered, looking down at the

school's proposed budget.

Mrs Pilchard said she had heard from State Representative Julia Wasserman that

this extra state aid is a one-time thing and that towns should not expect this

kind of assistance a year from now. However, First Selectman Herb Rosenthal

said he heard differently.

"Some of this was due to pressure from the small communities and lobbying from

CCM to give towns more assistance," he said.

The referendum on the town's proposed $59.3 million budget (representing a 1

mill increase) is slated for April 28.

(The Associated Press contributed to this story.)