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    Editorials
    Monday, May 13, 2024

    Finizio's two-straight big tax hikes for New London too much

    In proposing substantial tax and spending increases in an election year — the second straight year to do so — no one can accuse New London Mayor Daryl Justin Finizio of using the traditional re-election playbook.

    Last year at this time, Mayor Finizio asked the City Council to increase municipal spending 12.5 percent. Combined with a smaller increase in education spending, it would have required a 12.2-mill tax increase.

    Recall the council toned that down some, but the budget approved still required a 10.5-mill increase. It was an unusual year, however, due to a revaluation. Assessments dropped significantly in the interior city core, due to a drop in real estate values, meaning many of those homeowners saw little or no tax increase despite the big tax-rate hike.

    In the South End, however, homes along or near the water better weathered the real estate head wind — location, location — and their higher assessments meant the burden of the big tax increase fell largely on those property owners.

    This selective distribution of the pain, along with a convincing selling job by the mayor on the need for the spending increase to maintain services, help explain why voters overwhelmingly affirmed the budget in November. Note also that Mayor Finizio had depoliticized the debate by saying he would not seek re-election.

    Having so deftly managed his spending plan, and having reinserted himself in the mayoral race by announcing he would seek a second term after all, one would have expected candidate Finizio to propose a budget that kept spending steady or close to it. Instead, his honor is asking the council to boost municipal spending nearly 6 percent and is passing along unaltered an education budget that would boost school spending at an equal rate. The budget would increase the tax rate another 4.76 mills to 42.76, meaning a $601.23 increase in the tax bill for a average-priced home assessed at $126,309.

    The spending plan left the mayor’s critics seething and provided an opening for election opponents, which so far number one.

    If Mayor Finizio is playing politics, he is playing a different game than most.

    The mayor explains this is largely a status quo budget, with the increase in municipal spending driven not by hiring, but by raises required in labor contracts and by inflation. While state aid has held roughly steady in recent years, that is effectively a cut because costs go up, said Mayor Finizio.

    Returning to the budget-fudging game plan of the last mayoral election, when at one point four of the seven councilors were seeking the mayor’s job, would be a mistake, he said. On that, we can agree. In the last budget before the switch to the strong-mayor system, spending increased $1 million while the mill-rate held steady. A lame-duck city manager did not push back against dubious revenue and spending estimates. The result was deep deficits from which the city is only now recovering.

    But there is some middle ground between reckless budgeting and slapping property owners with another steep tax increase. Mayor Finizio doubles spending for the library from $625,000 to $1.25 million. No doubt there is a need, but a 100 percent increase is simply too much. Public Works would get a plumber, facilities engineer and facilities maintainer. It can’t manage another year without all these positions?

    The budget fully funds a grants writer and risk manager, jobs that the mayor said will “reduce expenses and obtain for us new revenue.” However, the budget shows no expense reduction or added revenue associated with these jobs.

    The point is, there is room to pare this proposed tax increase.

    Mayor Finizio predicts brighter days ahead. Tax breaks for the Electric Boat property on Pequot Avenue are expiring, which will produce nearly $1 million in revenue the following fiscal year, according to the administration. Discussions in Hartford could lead to increased state revenue for cities like New London that have high levels of nontaxable government and nonprofit properties. Fort Trumbull could finally see development.

    Rather than justifying higher taxes, however, these are reasons to try to hold the line on spending until the cavalry arrives.

    In passing along the proposed education budget increase, Mayor Finizio made a valid point. Nothing can do more to attract families and raise home values than turning around the school system. If education is the priority, mayor, hold the line on city spending, don’t increase it equally.

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