East Hartford 2010/2011 Budget Public Hearing Testimony

Here is my testimony for the public hearing on the budget.

We have problems here in East Hartford. We have problems with our municipal government, problems with our school board and problems with the State of Connecticut. All told the lack of leadership in these three arms of government have brought us to this point here tonight. The point of having to sit in front of a microphone and speak before this council on an issue of absolute lunacy, a 9.2% tax hike.

I know that the council minority will not abide such a tax increase and I don’t for a second believe that the council majority has any plans to let it stand either. The question is if not a 9.2% tax increase, what level of tax increase does the council majority have in store for us?

We cannot afford another thin dime and to force any increase on us, particularly in this time of complete financial calamity, is a despicable crime against the taxpayers of East Hartford.

Today greater than 1 in 10 East Hartford workers are unemployed according to the latest Connecticut Department of Labor data.

Adecco, one of the largest Human Resources firms in the United States, reports that 85% of large businesses could not give their employees raises in 2009 and according to George S. May International Company, a business consulting firm boasting over 500,000 clients, 77 percent of small businesses will provide no raises in 2010.

Yet at the same time we, the unemployed and under compensated private sector citizens are being told we must foot the bill for union contracted raises, which in most cases come twice per year, as well as raises for town administrators.

This recommended budget contains greater than one million dollars in new raises.

I am saying NO MORE.

When will you? Certain departments under this recommended budget, such as the fire department and parks maintenance have recommended salary increases approaching and exceeding 10%.

East Hartford has been running in the red for years and yet those at the helm have seen a steady stream of ever increasing green. This year East Hartford saw a decrease in our Net Grand List of .38% or 11.7 Million dollars.

Why is our Grand List shrinking? I suggest it is because the government of East Hartford has a long history of ensuring development of town owned property takes decades, and in some cases will never, break even on the tax giveaways and discounted property sales prices.

Take for example the development on Main Street which has a break even of over 100 years, the doctors office on Burnside which will take 20 years or more and the pending Daley Court Development which will take over ten years and by the very nature of the facility cost us additional federal and state dollars every year that it operates.

A new building in a blighted area may seem like a victory, but it isn’t when it comes at the cost of ensuring further economic harm to East Hartford.

Meanwhile East Hartford’s largest employer, property owner and tax payer, Pratt & Whitney, will see a tax increase under this proposal of over 1 million dollars per year.

Is it secretly this administration’s plan to coax Pratt out of East Hartford?

I can’t help but wonder with the ever increasing taxes and the push to use our tax dollars to complete portions of the private development of Rentschler field which will allow the Matos Group, whose principle and founder has been perhaps to largest contributor to Mayor Currey’s reelection bid, and Pratt and Whitney to profit handsomely from the development while we are left holding the bag with a promise that some decades from now we might see a return on our investment.

Looking at the capital improvement budget I am happy to see that some basic upkeep such as replacement of vehicles has returned to the budget in 2010.

This is the type of spending that cannot be avoided.

On the other hand I am disappointed to see over 200 thousand dollars being allocated for new granite curbing in the town hall parking lot. Granted the parking lot may not be the shining star of East Hartford but to date it is functional.

There are no doubt leaky roofs and other pressing needs just waiting to present us with a mid year emergency appropriation that this money could be directed to instead. Let’s leave luxuries such as granite for a time when we are not out of work and underpaid.

It is also time for this council to get serious about pushing for reform at the state.

Donald Pitkin was on the money inviting our delegation to the council. It is unfortunate that Mr. Kehoe didn’t see the wisdom in his request. I hope this council will engage our legislators.

East Hartford desperately needs relief from state mandates in two key areas of our budget. Contract Negotiation and Education funding.

Next year the Board of Education will forward a budget to the town council which will ask we the taxpayers to come up with 6 million dollars to cover the shortfall in funny money from the federal government.

This shortfall represents another tax hike of 6.3% next year.

If the Town Council does not comply with the board’s request the Board of Education will lose an additional 12 million dollars in State funding.

Additionally the same out of control cost drivers causing financial headaches this year will be back next year including spiraling employee and benefit costs.

We cannot control our budget until we control these costs. To control these costs we must be able to negotiate wage contracts that reflect the economic climate, not past practice from boom years enforced through arbitration.

We need freedom to create education budgets and employment contracts that work for the students and taxpayers of East Hartford, not arbitrary state statute and union lobbying.

Our Legislative delegation including Reps. Larson, Genga and Rojas as well as Senator LeBeau must introduce and aggressively fight for exemptions from Minimum Budget Requirements, Minimum Expenditure Requirements and binding arbitration awards for East Hartford. We need you as the East Hartford legislative body to encourage them to do so.

East Hartford is an economically dying city and with this budget the Mayor is holding the knife. We can save East Hartford, but it will require you to make difficult and painful decisions. Decisions which may not be politically popular, but which must be made.