Markeshia Ricks Photo
Mayor Harp Monday at a steakhouse ribbon-cutting.
Mayor Toni Harp is suspicious of the phrase “hold harmless.”
Legislators in Hartford used that phrase in passing a new state budget, which Gov. Dannel P. Malloy signed into law last week. They said it holds cities “harmless.” Meaning they’ll receive as much money as last year, and won’t have to make drastic cuts or raise taxes mid-year or see their bond ratings plummet.
But when New Haven officials looked at the details of the budget, they grew concerned, Harp said on her latest appearance on WNHH radio’s “Mayor Monday” program. She said New Haven could lose as much $10 million in the fine print.
“I don’t want to complain too much until we know for sure,” Harp said.
For instance, the state is eliminating support for its rental rebate program for low-income seniors and the disabled. It is requiring that cities now pay those rebates instead — a $2.6 million bill in New Haven, Harp said. However, it was unclear whether the state is phasing in that requirement until next year. The program sends the renters between $500 and $1,000 apiece if they pay above a certain percentage of their income for rent.
It looks as though state aid to New Haven’s schools remained pretty much constant from last year, Harp said. But the new budget canceled a plan from a previous budget to cap city car taxes at 32 mills, with the state picking up the rest of the tab for municipalities (the difference between the local mill rate and 32). The final budget made the cap 39 mills. Meanwhile, the city already sent out car tax bills at the 32 mill rate. The city’s mill rate is 38.68.
Harp said she doesn’t know yet if the city will need to send out another bill, or find savings. She also said the city needs a lot more answers from state officials before it figures out what cuts to make to this year’s budget and whether or not a tax hike will be necessary. She said the administration is working to avoid one.
The state budget includes a $36 million pot of money designed to hold cities … harmless. But it’s unclear how that money will be spent. “When we asked OPM [the state Office of Policy and Management] how the money would be disbursed, they didn’t know,” Harp said. She said it “looks like” cities “took a big hit” in cuts in the state Payments in Lieu of Taxes (PILOT) program, which reimburses municipalities for some of the revenue lost on tax-exempt properties.
State Senate President Martin Looney said in an interview Monday evening that it’s too early to come up with dollar figures for how much New Haven might lose in state aid compared to last year.
“We’re still negotiating details of the budget,” the New Haven Democrat said.
Looney said that “when the smoke clears,” New Haven will “be in a tremendous position compared to other municipalities and other parts of the budget that got cut drastically. The city of New Haven should consider itself lucky given our [state] fiscal condition.”
Looney stressed that low-income seniors and disabled people will get their full rental rebate. The question is just over “how that cost is going to be shared by the city and the state.” Legislators may take up the matter in an upcoming special session, he said.
As for the car tax, he said “everybody knew” months ago that the cap was not going to drop to 32 mills after all. he said the city “shouldn’t have” sent out tax bills at the 32-mill rate. “They’re going to have send out a supplemental bill,” Looney said of the city. “The city can tax up to 39 on the cars. They won’t lose any money on that.”
Once three State Senate Democrats and six House Democrats voted to help pass a Republican version of the budget (which the governor then vetoed), Looney noted, Democrat leaders knew that they would need to negotiate a compromise with Republicans to get a budget passed. Which is what happened.
Click on or download the above audio file or click on the Facebook Live video below to hear the full episode of “Mayor Monday” on WNHH FM.
This episode of “Mayor Monday” was made possible with the support of Gateway Community College and Berchem Moses P.C.
I don't know what's more pathetic. Harp announcing, and being surprised, that the city budget is going to be out of balance on Election Day. Or Paul Bass, her #1 supporter, reporting her free weekly advertisements on Election Day. Does this mean every 2 years its Mayor Tuesday's.
Myself and about 4 other commenters have been staying the obvious since Harp proposed this over reliant, bloated, spending spree of a budget. God forbid the zombies on the BOA actually voted in favor of that lunacy.
I still have hope Paul that one day you will reconnect with your journalistic integrity of old and actually hold Harp accountable like you used to do with the other guy.