By David Bingham
The legislature's new Municipal Organization and Regional Efficiency committee (MORE) provides a forum for reviewing how municipalities get revenue and how they can do so more efficiently in a time of economic crisis.
Connecticut is one of the few remaining states in which local property taxes are the major source of municipal funding. The result is a desperate scramble for development, seeking to raise the local grand list in an attempt to lower the local property tax rates. All too often, the result is inappropriate development that has a deleterious impact on the community's natural resources and sustainability, with minimal if any overall local tax relief.
Moreover, developments such as new shopping malls may have adverse economic impacts to a region, drawing investment out of our cities and adding energy and transportation inefficiency to the costs of society.
Unfortunately, when municipal budgets get squeezed in economic downturns, things like open space preservation, clean air and water projects, alternative transportation improvements, and energy efficiency commitments often are the first things cut, since their benefits are longer-term while the costs come up front.
Thus, our tax policy drives unsustainable development and poor planning. And conservationists should have a lot to contribute to the conversation. Alternative funding streams for municipalities will have to be available if they are to escape the scramble for property-tax revenue that is so destructive.
Fortunately, there are examples from other states that provide some exciting alternatives. They include dedicated conveyance fees for conservation funding, environmental impact fees, regionalized property tax collection, and sales and income tax options at the local and regional level. It is critical, from an environmental standpoint, that such new revenue streams don't simply bloat the local budges, but do in fact lower property taxes if they are implemented.
Moreover, it is critical that such approaches be instituted in a way that keeps the revenue stream more steady. Otherwise, future planning becomes impossible and caution cuts into the investments needed for natural resource conservation and mitigation.
Rep. Elissa Wright (D-Groton) is a good choice to co-chair the MORE subcommittee that will address these tax issues. As a committed conservationist herself with an excellent record on environmental issues and experience with local boards and commissions, she should be counted on to provide quiet but steady leadership to help aim the ship of state in a course away from its reliance on local property taxes for community services.
The committee findings and its recommendations will be of great interest and importance to all who care about the sustainability of our municipalities.
David Bingham, MD, is Co-Chair of the CTLCV Board of Directors
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