Connecticut House Bill HB05068

Connecticut 2012 Regular Session

• Introduced: 2/15/12
• Refer: 2/15/12

Caption

An Act Concerning State Grants In Lieu Of Taxes.

Impact

The implications of HB05068 extend to the way local governments are funded and their ability to provide essential services to residents. Currently, the PILOT programs serve as a crucial financial mechanism for towns and cities, compensating them for the tax revenue lost due to the presence of tax-exempt properties. Ensuring these grants are fully funded would enhance fiscal predictability for municipalities and encourage better planning and budgeting in local governance.

Summary

House Bill 05068 aims to amend section 12-19a of the general statutes to ensure that all state grants made in lieu of property taxes (PILOT programs) are fully funded by the state. The bill addresses the funding challenges faced by municipalities that rely on these grants to support local services and infrastructure. By mandating full funding, the bill seeks to alleviate financial burdens on local governments and improve their fiscal stability.

Contention

While the bill appears to have broad support due to its intent to benefit local governments, it may face opposition concerning the state's capacity to commit the necessary funding. Critics may argue that in tight budgetary times, fully funding PILOT programs could place additional strain on the state's overall budget and divert funds from other essential services. The debate may revolve around finding a sustainable financial model that balances between local needs and state budget constraints.