Connecticut Senate Bill SB00242

Connecticut 2015 Regular Session

• Introduced: 1/21/15
• Refer: 1/21/15

Caption

An Act Providing For Full Funding Of State Payment-in-lieu-of-taxes Programs.

Impact

The enactment of SB00242 would directly bolster the financial landscape of municipalities by providing them the necessary funding to cover the costs of property tax exemptions. This shift could positively impact local budgets, enhancing fiscal stability and enabling municipalities to reinvest in community services such as education, public safety, and infrastructure. There may also be a broader economic benefit as municipalities would have more resources to allocate towards community development projects and initiatives.

Summary

SB00242 is proposed legislation focused on amending state statutes to ensure full funding for municipalities participating in state payment-in-lieu-of-taxes (PILOT) programs. Specifically, the bill seeks to reimburse municipalities for one hundred percent of the costs associated with state-mandated property tax exemptions. This action aims to alleviate financial burdens on local governments that rely on these programs, thereby allowing them to maintain essential services without compromising their fiscal integrity.

Contention

While the bill's intention of fully funding PILOT programs is largely viewed as beneficial, there may be points of contention regarding the state’s fiscal capacity to sustain such funding. Discussions may arise around whether the state can absorb the costs without impacting other budgetary allocations. Some may argue that full funding could encourage municipalities to over-reliance on state funds, potentially leading to reduced accountability and management of local resources.