East Haddam Poised to Lose $90,000 Under Budget Cuts

Gov. Dannel P. Malloy’s proposed cuts in municipal aid would mean East Haddam would see it’s state funding cut by about $90,000 next year, money the town may have to take out of its surplus funds, First Selectman Mark Walter said.

According to figures released by the Connecticut Conference of Municipalities this week, the town would lose $86,418 under the cuts Malloy has proposed. Most of that money would be from grants in town road aid.

The state legislature is meeting today in a special session to discuss the state’s $1.6 billion budget shortfall and to review Malloy’s proposals to fill the budget gap.

Walter said the state should leave municipal aid untouched and focus on ways to cut state spending as well.

He and Colchester First Selectman Gregg Schuster sent a letter this week urging their state representatives not to vote to cut local funding.

“We based our budgets on the approved state budget. Reductions in municipal aid at this point could adversely affect the services we provide our citizens,” Walter said in the letter.

On Thursday Walter said he believes the state should look at cutting state programs, including a proposed new busway and the unearned income tax credits.

“The main thing we’d like to see before you cut municipal aid is you should go back and look at new (state) spending. Cutting municipal aid is essentially raising taxes, forcing us to go into our surplus.”

Over the last three fiscal years, he said, the boards of selectman, finance and education, along with municipal employees and residents have all worked hard to trim our expenses and weather the storm of this great recession. 

"Because of our careful management of our town’s resources, we feel that we have adequate reserves to offset the recently announced reductions in municipal aid without the need to enact any layoffs, service reductions or supplemental tax bills," he said.

"For the last three years," he added. "we have dealt with steady declines in state, federal and local revenues, including interest income and anemic grand list growth. These financial challenges have been part of municipal financial planning for years now. The latest anticipated municipal aid cuts, while painful, are simply further evidence of the need for the state to finally get its financial house in order." 

Walter said it would ultimately be up to the Board of Finance to decide where to find the money the state is considering cutting. The proposed cuts in state aid to towns comes after East Haddam residents approved the town's budget last month.