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New Answers to Connecticut's Property-Tax Crisis
Hartford, June 20, 2007 -- Today the Yankee Institute for Public Policy is releasing a groundbreaking analysis of Connecticut's property-tax crisis.
"Reform Spending, Relieve Taxpayers: Real Property-Tax Relief for Connecticut" examines why expenditure-oriented reforms offer the most promise to provide property-tax relief in the Nutmeg State.
Written by Yankee D. Dowd Muska, who authored last year's widely covered analysis of the failures of Connecticut’s income tax, the paper argues that public discourse about property taxes in the Nutmeg State is fundamentally flawed.
"Connecticut's taxpayers are poorly served by the current 'debate' over property-tax relief," said Muska. "Because discussions of municipal spending seldom, if ever, receive much attention from the state's political class, citizens don't get a full picture of possible solutions to their property-tax burden."
"Reform Spending, Relieve Taxpayers" explores how local-government overspending contributes to Connecticut's property-tax burden. From wildly generous pay and benefit packages to ineffective education policies to costly "redevelopment" projects, municipalities use the revenue raised from property taxes in many unsound ways.
After defining the true problem -- i.e., excessive expenditures -- "Reform Spending, Relieve Taxpayers" offers policy reforms that fall into three broad categories:
1) Mandate Repeal/Repair: Connecticut's lawmakers must offer relief from the hundreds of requirements they have placed on municipal governments. Forced unionism should be eliminated, as should the "prevailing wage" law that drives up the cost of local-government construction. In addition, parents of special-education students should be given vouchers that enable them to seek individualized care outside the government-school system.
2) "Anti-Mandates": If state law can boost the cost of local government -- and thus, contribute to higher property taxes -- then why can't lawmakers adopt requirements that lower municipal costs? The wages and benefits of local-government employees should be made to conform to comparable positions in the private sector. State aid should be denied to cities and towns that sign expensive "project labor agreements" with Big Labor. And legislators should ban public employees from serving as municipal elected officials.
3) Better Local Decisionmaking: While dictates from Hartford are a major contributor to high property taxes, they aren’t the only culprit. Much of local-government spending is in the hands of municipal bureaucrats and elected officials. Education spending should be focused on core skills, not fads and trends. Corruption in school districts should be exposed and corrected. And municipalities should pursue competitive contracting of government services.
"We've heard that the only way to reduce property taxes is to raise the income tax," said Yankee Institute Chairman Andrew Cowin. "Dowd's paper destroys that argument, showing it to be nothing more than 'bait-and-switch' from politicians. Only less spending by government will let Connecticut's working people and retirees keep more of their money."
Muska will discuss his new paper with Jim Vicevich on WTIC’s "Sound Off Connecticut" this morning at 10:30.
"Reform Spending, Relieve Taxpayers" is the latest publications from the Gressel Center for Tax and Budget Policy, the Yankee Institute's fiscal project.
The Yankee Institute is a think tank that creates new ideas for lower taxes and better government in Connecticut. As a nonpartisan, nonprofit organization, donations to the Institute are tax-deductible. It is based on the campus of Trinity College in Hartford.
"Connecticut's property-tax crisis can be brought under control," concluded Muska. "But making the necessary changes will require considerable political courage. Only when elected officials start standing up for taxpayers -- and start saying no to Big Government activists and public employees -- will our property-tax burden be lightened."
Muska is available for print, radio, and television interviews. Contact Mary Crean at (860) 881-5589 or mary@yankeeinstitute.org.
D. Dowd Muska is the Yankee Institute's Philip Gressel Fellow for Tax and Budget Policy.
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The Yankee Institute for Public Policy, Inc. is a nonpartisan educational and research organization founded more than two decades ago. Today, the Yankee Institute's mission is to "promote economic opportunity through lower taxes and new ideas for better government in Connecticut." The Yankee Institute for Public Policy, Inc. is classified by the IRS as a 501 (c) (3) public charity. Contributions are deductible to the extent allowed by law.
