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First Selectman's Report - 06/27/2011

 

 

STATUS OF THE STATE BUDGET AND ITS IMPACT ON THE TOWN OF SIMSBURY

THE BUDGET SUBMITTED BY GOVERNOR MALLOY AND APPROVED BY THE STATE LEGISLATURE EARLIER THIS YEAR WAS DEPENDENT FOR SURVIVAL UPON SUCCESSFUL NEGOTIATIONS WITH THE STATE’S EMPLOYEE UNIONS.  THOSE NEGOTIATIONS SOUGHT $1.6 BILLION IN SAVINGS OVER A TWO YEAR PERIOD.  IN ORDER FOR THE BUDGET TO SURVIVE, UNIONS REPRESENTING MORE THAN 80 PERCENT OF THE STATE’S UNIONIZED WORFORCE HAD TO RATIFY THE NEGOTIATED AGREEMENT.  LAST WEEK, AFSCME, WHICH REPRESENTS MORE THAN 30 PERCENT OF THE STATE’S UNIONIZED WORKFORCE, VOTED THE AGREEMENT DOWN, ESSENTIALLY VOIDING THE BUDGET PASSED BY THE LEGISLATURE.  IT IS BACK TO THE DRAWING BOARD FOR THE STATE BUDGET.

WHERE DOES THAT LEAVE THE TOWN OF SIMSBURY?

THE BUDGET PROPOSED BY GOVERNOR MALLOY AND APPROVED BY THE LEGISLATURE LEFT MOST OF SIMSBURY’S STATE FUNDING UNTOUCHED.  IN FACT, SIMSBURY ANTICIPATED A SMALL INCREASE IN REVENUES THROUGH A VARIETY OF NEW SALES AND SERVICE TAXES.  WITH THE REJECTION OF THE NEGOTIATED AGREEMENT, ALL OF THIS IS LIKELY TO END UP BACK ON THE TABLE.  WHILE THE GOVERNOR HAS PLEDGED TO PRESERVE AS MUCH MUNICIPAL AID AS POSSIBLE, HE NOW HAS TO FIND A DIFFERENT WAY TO CLOSE THE STATE BUDGET DEFICIT – AND NOTHING IS CERTAIN.

THE GOVERNOR HAS CALLED FOR A SPECIAL SESSION OF THE LEGISLATURE ON THURSDAY, JUNE 30 AT WHICH HE WILL ASK THE LEGISLATURE TO EXPAND HIS RESCISSION AUTHORITY (WHICH GIVES HIM THE AUTHORITY TO REDUCE SPENDING) AND ENACT LEGILSLATION TO CLOSE THE BUDGET DEFICIT FOR THE BIENNIUM ENDING JUNE 30, 2013.  HE HAS MADE CLEAR THAT EVERYTHING IS ON THE TABLE, EXCEPT THAT HE WILL NOT SUPPORT TAX INCREASES.

THE TOWN IS LEGALLY REQUIRED TO BALANCE ITS BUDGET.  THE BOARD OF SELECTMEN, THE BOARD OF FINANCE AND THE BOARD OF EDUCATION WILL CLOSELY MONITOR DEVELOPMENTS IN HARTFORD AND WILL CONTINUE TO WORK TOGETHER TO ASSESS THE TOWN’S OPTIONS AS THE FACTS DEVELOP.  IF STATE FUNDING TO THE TOWN IS CUT, THOSE OPTIONS INCLUDE TAKING MONEY OUT OF RESERVES, FINDING WAYS TO REDUCE THE BUDGET PASSED IN MAY, OR – AND THIS IS THE LEAST LIKELY OPTION – A SUPPLEMENTAL TAX INCREASE.

THE TOWN OF SIMSBURY WILL DO WHAT IT TAKES TO BALANCE ITS BUDGET.  FOR NOW, THAT MEANS FOLLOWING DEVELOPMENTS IN HARTFORD CLOSELY, WORKING TOGETHER AND NOT ACTING PRECIPITOUSLY.  AS ALWAYS, WE WILL KEEP SIMSBURY RESIDENTS FULLY APRISED OF ANY AND ALL DEVELOPMENTS THAT AFFECT OUR TOWN.
WE WILL ADVOCATE TO SUSTAIN SIMSBURY’S MUNICIPAL AID BUT I HAVE ALREADY MET WITH DEPARTMENT HEADS TO PREPARE THEM FOR POSSIBLE BUDGET CUTBACKS.  I WILL CALL A SPECIAL BOARD OF SELECTMEN MEETING IF NECESSARY ONCE THE STATE BUDGET PICTURE IS MORE CLEAR.