Town Bracing For Possible $156,000 Cut In State Funding

Officials in the town of Clinton are prepared to meet soon to figure out how they will manage what might be a $156,000 decrease in funds to the town from the state.

The $156,000 is a direct result of a proposed move by Gov. Dannel P. Malloy to cut 2.4 percent of funds to municipalities to deal with a $1.6 billion state budget shortfall.

On June 28, the governor announced a proposed elimination of 6,466 jobs – 1,000 of which are vacant positions that will not be back-filled. Layoffs are expected to begin in September.

A special session of the legislature is slated for June 30, the last day of the 2011-2012 fiscal year.

The proposed cut of $156,000 in funds to the town of Clinton would be spread out over two years, said First Selectman Willie Fritz.

“If it happens, it starts the new fiscal year, July 1,” he said. “We will meet with the town’s Board of Finance to see where we can take the funds.”

Fritz noted that the town has a healthy undesignated, or “rainy day” fund in the $7-8 million range.

“It is where it is supposed to be,” he noted.

Financial institutions, especially those who look at a town’s bond rating, recommend that the undesignated fund be between 8 and 15 percent of the town’s total budget.

Clinton’s total budget, which includes the town and schools, is $46 million.

In tomorrow’s special session, the governor may ask for full rescission power for municipal and education aid to the towns.

“The governor currently has certain authority for rescission over state departments and state funds,” noted Fritz.

Fritz also said the State Employees Bargaining Coalition is looking to address the bylaws of votes, possibly converting it to a majority rule and not a percentage of votes to pass a motion.

Last week, even though 57 percent of union workers voted for the concessions, the vote was not ratified.