Breaking – Malloy proposes half-baked scheme to reform education funding

Rather than address the fact that the State of Connecticut underfunds it public schools by almost $2 billion a year and the state should dramatically increase its level of support for public schools in the state, Governor Dannel Malloy went to New Britain today to announce a sham proposal that will further exacerbate Connecticut’s failed school funding policies.

Malloy’s proposal does little more than redirect a relatively small amount of existing funds from wealthier and middle income towns to Connecticut’s poorest communities.  The amount of money won’t have a profound impact for poor towns, but it will certainly ensure major cuts to local schools in a large number of towns and lead to significantly higher property taxes in the majority of Connecticut’s communities.

At the same time, in a truly outrageous maneuver, Malloy is proposing allowing those towns that received a cut in aid to reduce their minimum expenditure requirements, thereby literally lowering education quality in the majority of Connecticut’s towns.

As the CT Mirror explains;

The new pool of money – for educating physically or developmentally disabled students – would be funded almost entirely by redirecting nearly one-quarter of the $2 billion in state dollars that currently go toward the ECS grant and all of the so-called Excess Cost grant, which helps school districts pay for services for severely disabled students.

The CT Mirror added;

To accomplish the goal of redirecting education dollars to the districts most in need, Malloy would change how the state measures poverty in schools

Malloy would replace it with the number of participants in Husky A, health care provided through Medicaid.

[…]

“The concern is that you would underestimate poverty,” Daniel Long, the research director for Connecticut Voices for Children.”

As one representative for communities told CT Newsjunkie;

“The governor’s proposed changes to ECS and special education funding, coupled with his proposal to require towns to pick up one-third of the cost of teacher pension costs, will make it impossible for small towns to fund education without staggering increases in local property taxes,” said Betsy Gara, Executive Director of the Connecticut Council of Small Towns. “This proposal will divert resources away from our smaller communities in a way that spells absolute disaster for our local property taxpayers.”

You can read more about this breaking story via the following links;

CT Mirror – Malloy proposes shaking up state education aid

CT Newjunkie – Malloy Will Pitch Changes To Education Formula

Governor Malloy’s Press Release on the issue can be found here  – Gov. Malloy’s Proposed Budget Provides a Fairer Distribution of Education Aid, Allocates Additional $10 Million for Special Education

 

News Flash – Malloy moves to undermine teachers, public schools and property taxpayers yet again!

In a brazen move that will undermine local public education and increase taxes at the local level, Governor Dannel Malloy announced today that his new proposed budget will dump a major portion of the state’s obligation to fund the teacher’s retirement system onto the back of local towns and taxpayers, all while cutting the most important middle income relief program.

Malloy’s tactics would require Connecticut’s cities and towns to make drastic cuts to local education and increase local property taxes in order to make up the cost shift of $407.6 million in FY 2019 and $420.9 million in FY 2019.  His plan would also end the property tax credit designed to help middle income families who are already facing high local tax burdens.

In an article entitled, Malloy would bill towns for teachers’ pensions, cut middle-class tax credit, Keith Phaneuf of the Connecticut Mirror explains;

Gov. Dannel P. Malloy said Friday his proposed budget would shift $407.6 million, nearly one-third of the cost of municipal school teachers’ pensions, onto cities and towns next fiscal year…

[…]

Malloy also said the two-year budget he will present Wednesday to the General Assembly would propose eliminating the $200 property tax credit within the income-tax system, costing nearly 875,000 middle-class households as much as $105 million per year based on nonpartisan analysts’ estimates.

More on this breaking story can be found at – http://ctmirror.org/2017/02/03/malloy-would-bill-towns-for-teachers-pensions-hints-at-cut-to-middle-class-income-tax-credit/

and at CT Newsjunkie – http://www.ctnewsjunkie.com/archives/entry/malloy_proposes_shifting_one_third_of_teacher_retirement_costs_to_towns/

Massachusetts said NO to more charter schools, Connecticut should as well

At the same time that Governor Dannel Malloy is instituting the deepest cuts in Connecticut history to Connecticut’s public schools he is diverting more than $110 million dollars a year in taxpayer funds to Connecticut’s privately owned and operated charter schools.

Malloy and his operatives now want to expand this outrageous money grab with a plan to increase the number of charter schools in Connecticut and implement a new funding proposal that would see an additional $40-$50 million a year diverted to the private corporations that own Connecticut’s existing charter schools.

Connecticut’s elected and appointed officials should take a deep pause and look to Massachusetts for an indication of what happens when a state adopts this so-called “money follows the child” funding system.

Last November the charter school industry in the Bay State tried to push through a state-wide ballot initiative that would have allowed more charter schools to be opened in the Commonwealth.

To fund their effort the charter school industry pumped more than $24 million dollars into their political campaign.

The cash came from large corporate education reform “dark money” groups that refuse to release the names of their donors, wealthy hedge fund owners, Massachusetts corporations and out-of-state contributors including the Walton family of Wal-Mart fame and former New York Mayor Michael Bloomberg.  (See Wait, What? post Charter School Industry raised more than $24 million in 2016 record breaking defeat In Massachusetts).

But in this case, the massive outpouring of money couldn’t buy the outcome of the election as parents, educators and taxpayers successfully pushed back against those who seek to privatize public education in the United States.  On Election Day, 62 percent of voters cast their ballots against the measure and only 38 percent in favor of the provision.

Barbara Madeloni, President of the Massachusetts Teachers Assocation, summed up the significant victory saying;

 “It’s really clear from the results of this election that people are interested in public education and value that.”

Madeloni added,

“There should be no conversation about expanding charters until the Legislature fully fund our public schools.”

Media coverage of the Massachusetts ballot initiative explained the outcome noting,

“The opposition could not match the “Yes on 2” campaign on television advertisement spending. But the “no” camp had the support of prominent Democrats, including Senator Elizabeth Warren and Boston Mayor Martin J. Walsh. And it mobilized a sprawling field operation, with hundreds of teachers and liberal activists reaching an estimated 1.5 million voters statewide over the course of the campaign.”

In Massachusetts, voters realized that the charter schools were diverting scarce taxpayer funds away from local public school because Massachusetts already utilizes what is called a “money follows the child” school funding formula.  This funding system means that,

“When students leave traditional public schools for charters, they take thousands of dollars in state aid with them. And opponents focused heavily on this financial strain, raising the specter of cuts to arts education, transportation, and other services at the schools that serve the vast majority of students.”

Connecticut’s charter school advocacy groups have recently proposed just such a system for Connecticut and it is very likely that Malloy, an advocate of privatizing public education, will adopt their proposal as his own when he issues his proposed state budget next week.   See the Wait, What? Post of January 26, 2017 entitled Connecticut – Beware the charter school industry’s proposed new school funding scheme.

The question now is whether the state legislature will do Malloy’s bidding or actually step forward and do what is best for Connecticut’s students, parents, educators, public schools and taxpayers.

Stay tuned!

Connecticut – Beware the charter school industry’s proposed new school funding scheme

The charter school front groups, ConnCAN and the Connecticut Council for Education Reform, with the help of the Connecticut School Finance Project, the Connecticut Association of Boards of Education (CABE) and the Connecticut Association of Public School Superintendents (CAPSS) – the latter two groups which are funded through local school budgets and are supposed to be advocating for public schools – have proposed a set of principles for a new school funding formula for Connecticut that will undermine the state’s public school districts and drain local municipal budgets.

The new pro-charter school plan is based on the school funding formula in Rhode Island and it is a classic “Money Follows the Child” system that would mean that, in addition to collecting about $110 million a year from the State of Connecticut, the state’s privately owned and operated Charter Schools would grab an additional $40-$50 million a year in public funds from the local schools in Bridgeport, New Haven, Hartford, Stamford, Hamden, Norwich and Manchester.

The operative language in the new charter school sponsored formula reads;

“A combination of state and local funds should be allocated to schools of choice on a per student basis, so that the total per-pupil funding for these students will go to the schools or districts of choice.”

This public money “follows the child” plan is particularly appalling and inappropriate because charter schools are not accountable to elected local board of education.  Local school districts have no say in whether charter schools are created, where they are located, which children they educate or refuse to educate, nor do local boards of education have control over any other charter school policy or practice.

The operative question is why should local taxpayers pay for a school that is utterly unaccountable to the local community?

In addition, Connecticut’s charter schools are notorious for discriminating against Latino students, students who require additional help learning the English language, children who need special education services and those who display disciplinary problems.

Furthermore, charter schools in Connecticut do not face the same costs as public schools since,  among other things, they refuse to allow educators to unionize and in most cases only half the teachers (or even fewer) have been certified under Connecticut’s strict teacher preparation programs.

The truth is that Connecticut charter schools also DO NOT pay for transporting students to or from their school nor do they pay for any special education costs associated with their students – those costs are already picked up by the local school districts.

Although pro-charter school Governor Malloy will undoubtedly use this plan as his proposed formula when he announces his school funding plan next month, the plan is bad for Connecticut’s students, parents, educators, public schools and taxpayers.

His efforts to privatize public education in Connecticut know no bounds and the charter school industry’s newest proposal is simply a stunning money grab from school districts that are already massively underfunded.

A cost study conducted in 2005 found that Connecticut was underfunding its schools by approximately $2 billion a year, leaving schools without the resources they need to close the achievement gap and help all students succeed.  A new cost study – which is sorely needed and which the school funding advocates (CCJEF) are calling for —one done to reflect current costs, taking into account all our new mandates and standards,  and current student demographics and need – will undoubtedly show a similar if not even larger gap in state funding.

This incredible pro-charter school funding proposal would make the situation even worse for Connecticut’s urban districts.

The plan is being put forward by:
CT Association of Boards of Education (CABE)
CT Association of Public School Superintendents (CAPSS)
CT Association of Schools (CAS)
CT Coalition for Achievement Now (ConnCAN)
CT Council for Education Reform (CCER)

Finally, the reality that CABE and CAPSS are joining the charter school industry in promoting such a disastrous funding plan is a disturbing indictment of their failure to represent the citizens of Connecticut and a gross violation of their mission, purpose and nonprofit status.  Compounding their dereliction of duty is the fact that these two groups are part of the CCJEF coalition yet their scheme harms the very children, parents, public and schools and poorer towns and cities that CCJEF has been fighting so hard and so long to help.

For more about how charter schools are seeking to undermine Connecticut’s public schools read, Draining dollars from our students by Wendy Lecker

In her column, Wendy Lecker wrote;

Compounding the damage to public school funding, Malloy’s allies intend to “reform” Connecticut’s school funding formula to drain more public dollars from public schools — toward privately run charter schools.

As the Malloy administration recently acknowledged, district public schools are the vehicle the state chose to discharge its constitutional responsibility to educate children. Although the state must ensure adequate funding, in reality the state and municipalities share the financial burden. State education funding never covers the full cost of education. The state provides a portion and the local municipality fills in the rest, with the federal government contributing a small amount. When the state fails to pay its fair share, municipalities must to make up the gap.

Successful school funding reforms start with an analysis of what it costs to educate children. Once the cost is determined, states find they must increase school spending. Those increases have been proven to improve educational and life outcomes, especially for poor children.

To begin serious reform, Connecticut must assess what it costs today to bring an adequate education within the reach of all students.

However, Malloy’s charter allies do not want to discuss the cost of education. Their agenda is simply to get the legislature to include charter schools in any new school funding formula. Why? So local districts would be required to fund charters from local budgets.

State charter schools are considered independent districts. Local districts do not receive state allocations for students attending charter schools nor are they required pay the local contribution for children in charter schools. The host district has no say over the charter schools located within its borders. State law does require local school districts to pay for transportation and special education costs for children attending charter schools. Aside from that, charters are funded by state allocations, federal funds and private donations.

Charters are not funded like district public schools because they differ from public schools. They are statutorily created and can be discontinued anytime. They need not serve all grade levels nor provide the same services as public schools, and do not have to hire certified teachers. They are also exempt from other state mandates and accountability.

The charter lobby’s proposal would require local districts to pay for any costs for charters not covered by the state. Local taxpayers would now pay for charters like they pay for their own schools; without having any voice in charter schools and without charters following the same rules as public schools. As the state decides to expand charters, more local dollars will be drained from public schools toward these independent schools. In Rhode Island, where this system exists, districts lose tens of millions of dollars annually to charters.

Draining more money from impoverished school districts will not improve education for Connecticut’s neediest children. If our leaders are serious about school funding reform, they must start with assessing the true cost of providing every child with an adequate education. Only then can we have an honest discussion about how we can serve the educational needs of all our children.

Malloy’s austerity budget strategies are hurting Connecticut

  • Record cuts to Connecticut’s public schools and institutions of higher education.
  • Drastic and devastating cuts to vital human services
  • Continuation of corporate welfare programs and efforts to coddle the rich.

Governor Dannel Malloy, with the help of the Connecticut General Assembly, is destroying core government programs and undermining Connecticut’s economic path.

This legislative session, the Democrats in the Connecticut legislature will be faced with a choice – continue Malloy’s disastrous policies – or stand up to the bully and pass a fair and honest state budget.

In order to adopt a better budget solution legislators will need to identify new sources of revenue to pay for vital state services and programs.

To that end, Connecticut Voices for Children has released a major report – today – on Revenue Options to deal with Connecticut’s Fiscal Crisis

Providing a light for Connecticut legislators should they decided to do their job and resolve Connecticut’s massive budget crisis, Connecticut Voices for Children released a report today entitled, Revenue Options are Key to Tackling Budget Shortfalls and Supporting Thriving Communities

CT Voices writes;

In confronting budget deficits of more than $3 billion in the upcoming biennial budget, the commonsense choice for Connecticut should be a balanced approach that includes revenue, rather than a cuts-only approach that threatens an already fragile recovery. Last year, lawmakers chose an “austerity” approach, balancing the budget with $850 million in spending cuts. As a result, the Children’s Budget—a measure of the state’s investments in children and families—fell to a record low 29.5 percent of total General Fund spending.

While such cuts may offer a short-term solution, they do so at a significant cost to the long-term economic structure of the state. 

On the revenue side, there are opportunities to invest in Connecticut’s future by modernizing an outdated sales tax system, strengthening taxes on corporations, and reforming wealth and income taxes. This brief highlights revenue options discussed and/or recommended by the State Tax Panel– –a body of experts who met over the course of two years to evaluate Connecticut’s state and local taxes. While the Panel’s final recommendations were required to be revenue neutral, the policies themselves can be adapted to yield new revenue to support essential investments in our future.

 By combining increased revenue, new strategic investments, and smaller budget cuts, the Governor and the Legislature can both balance the budget and position the state for a more prosperous future. 

 

One of the key elements of the report is an effort to explore a variety of options to ensure that the state’s wealthiest residents start paying their fair share.

Looking to reform wealth and income taxes in Connecticut, CT Voices observes;

A recent report from the Center on Budget and Policy Priorities finds that Connecticut’s income distribution is the third most unequal state in the nation.7 The report cites upside down total state and local tax systems (which impose a higher effective rate on lower income taxpayers) and the growth in the share of investment income (from dividends, capital gains, and interest) to total income that goes primarily to high-income households, as contributing factors 

Indeed, Connecticut’s overall tax system (including income, property, and sales and excise taxes, minus federal deductions) allows the most powerful among us to pay a much lower percentage of their income in taxes. For example, a family making less than $25,000 a year pays an estimated 11 percent in state and local taxes while a family making over $1,331,000––the top 1 percent––pays 5.5 percent.8 If the top 5 percent of Connecticut households paid the same effective tax rate as the remaining 95 percent of households, the state could raise more than $2 billion in state revenue annually.  

Combined, the listed changes could raise more than $1 billion while also creating a fairer tax system and reducing wealth inequality: 

Increase Top Tax Rate for Top Two Tax Groups ($238 million):     A half percentage point increase on the top two personal income tax brackets would result in an estimated $283.1 million in new state revenue—more than 82 percent of which would fall on the top 1 percent of taxpayers. Over a third of this tax increase would be offset by larger federal income tax deductions typically available to high-income earners, meaning that of the $238 million in new revenue, the state would raise $150.4 million from taxpayers, while the other $87.6 million would be picked up by the federal government.   

Increase Capital Gains and Dividends Taxes for Top Three Tax Groups ($134.6 million):     Carried interest is the share of earnings that investment managers receive from a profitable return of their client’s investment. The federal government treats carried interest as investment income, or capital gains, rather than as wages or commissions. This preferential treatment results in a federal tax liability that is 50 percent less than it would be for ordinary income. This is known as the carried interest loophole. Despite bipartisan support, little hope exists that Congress will take action. By increasing the tax on capital gains and dividends at the state level, Connecticut could redress the large preferences these two types of income enjoy in the federal tax code and raise $134.6 million.

Taxing capital gains and dividends would represent a return to historical treatment of unearned income. When Connecticut’s income tax was enacted in 1991, taxes were also cut for higher-income earners by eliminating a 7 percent tax on capital gains and a 14 percent tax on dividends and interest. Thereafter, investment incomes were subjected to the state income tax at a much lower rate of 4.5 percent. While the top income tax rate has increased to 6.99 percent, it is still below pre-1991 levels for unearned income. Moreover, any increased taxes on unearned income, like any increase on earned income, would be offset in part by larger federal income tax deductions. 

Millionaires Thrive in Connecticut Thanks to Public Investments Anti-tax advocates have been inaccurately citing Internal Revenue Service (IRS) data in an effort to convince their audience that higher taxes have resulted in a “mass exodus” of residents seeking low tax states.9 They assert that the income of residents who moved out of the state is income lost to another state, therefore depleting Connecticut’s finances. It is a claim that former Tax Foundation economist Lyman Stone has written rests “on an egregiously wrong use of the data” by analysts who “have either failed to perform the most basic due diligence…or else actively mislead their readers.” In other words, the vast majority of people who leave a state hold jobs that will be filled by people joining the labor force from within the state or moving in, resulting in no “loss of income” at all.   

Indeed, a 2016 study found that millionaires were much less likely to move than the rest of the population and that there was only a very small influence of income tax rates on the probability of moving. This study, based on 13 years of IRS tax data from all millionaires in the U.S., found that millionaire mobility and the low levels of responsiveness of millionaires to taxes meant that top tax rates would only start to decrease revenue if they were significantly higher than the single digit rates of Connecticut. A half percent, one percent, or two percent increase in the top tax bracket would not have a negative impact on revenue due to migration.  

Join Regional Compact to Close Carried Interest Loophole ($535 million):  Another way in which states could act to close the carried interest loophole in light of inaction in Washington D.C. would be to form a regional compact. Already raised by the New York and New Jersey legislatures, the proposed legislation calls for Northeastern states to impose a tax rate on carried interest sufficient to capture each state’s share of the increased federal income tax liability that would be incurred if the loophole were closed at the federal level. Both states’ proposals call for a 19 percent “carried interest fairness fee” until the loophole is closed at the federal level. By definition, the compact would not go into effect until all states (New York, New Jersey, Massachusetts, and Connecticut) enacted the same provisions. It is estimated that Connecticut could raise $535 million by doing so.

And the Connecticut Voices report outlined a number of other steps that Governor Malloy and the Connecticut General Assembly could take to deal with Connecticut’s fiscal crisis.  The full report can be found at:  http://www.ctvoices.org/sites/default/files/Revenue%20Options%202017_0.pdf

Draining dollars from our students by Wendy Lecker

Columnist and education advocate Wendy Lecker writes about Governor Dannel Malloy’s attack on Connecticut’s public schools and his ongoing effort to privatize public education in Connecticut.

In Draining dollars from our students, Wendy Lecker writes;

Though the CCJEF v. Rell trial, Judge Thomas Moukawsher ruled that the Connecticut provides more than adequate school funding, his actual findings of fact, found in the Appendix to his decision, confirm CCJEF’s claims that public schools are woefully under-resourced.

The judge found that CCJEF districts had severe deficiencies in special education teachers, interventionists for reading and math, social workers, guidance counselors, school psychologists, and services for English Language Learners. Bridgeport was forced to cut 73.5 teachers, including special education teachers, social workers and psychologists in one year, even as the population grew. New Britain had to make similar cuts.

Adequate funding for all means that children who need extra support to learn get it. As the New York court said, the opportunity for an adequate education “must be placed within reach of all students.”

Moukawsher found that CCJEF districts lacked resources to provide their most vulnerable students with the extra help and support they need to access basic educational opportunities. Therefore, his conclusion that the state is providing more than adequate funding is astounding.

Because of Moukawsher’s ruling, Gov. Dannel P. Malloy felt free to cut $20 million in school aid from the Education Cost Sharing (ECS) school funding formula last week.

Districts that cannot afford teachers must scramble to fill a quarter-of-a-million-dollar hole halfway through the school year.

Simultaneously, the Malloy administration announced plans to expand publicly funded, privately managed charter schools. Austerity is only imposed on district public schools, apparently.

Compounding the damage to public school funding, Malloy’s allies intend to “reform” Connecticut’s school funding formula to drain more public dollars from public schools — toward privately run charter schools.

As the Malloy administration recently acknowledged, district public schools are the vehicle the state chose to discharge its constitutional responsibility to educate children. Although the state must ensure adequate funding, in reality the state and municipalities share the financial burden. State education funding never covers the full cost of education. The state provides a portion and the local municipality fills in the rest, with the federal government contributing a small amount. When the state fails to pay its fair share, municipalities must to make up the gap.

Successful school funding reforms start with an analysis of what it costs to educate children. Once the cost is determined, states find they must increase school spending. Those increases have been proven to improve educational and life outcomes, especially for poor children.

To begin serious reform, Connecticut must assess what it costs today to bring an adequate education within the reach of all students.

However, Malloy’s charter allies do not want to discuss the cost of education. Their agenda is to simply to get the legislature to include charter schools in any new school funding formula. Why? So local districts would be required to fund charters from local budgets.

State charter schools are considered independent districts. Local districts do not receive state allocations for students attending charter schools nor are they required pay the local contribution for children in charter schools. The host district has no say over the charter schools located within its borders. State law does require local school districts to pay for transportation and special education costs for children attending charter schools. Aside from that, charters are funded by state allocations, federal funds and private donations.

Charters are not funded like district public schools because they differ from public schools. They are statutorily created and can be discontinued anytime. They need not serve all grade levels nor provide the same services as public schools, and do not have to hire certified teachers. They are also exempt from other state mandates and accountability.

The charter lobby’s proposal would require local districts to pay for any costs for charters not covered by the state. Local taxpayers would now pay for charters like they pay for their own schools; without having any voice in charter schools and without charters following the same rules as public schools. As the state decides to expand charters, more local dollars will be drained from public schools toward these independent schools. In Rhode Island, where this system exists, districts lose tens of millions of dollars annually to charters.

Draining more money from impoverished school districts will not improve education for Connecticut’s neediest children. If our leaders are serious about school funding reform, they must start with assessing the true cost of providing every child with an adequate education. Only then can we have an honest discussion about how we can serve the educational needs of all our children.

Wendy Lecker’s column first appeared in the Stamford Advocate.  You can read and comment on it at: http://www.stamfordadvocate.com/news/article/Wendy-Lecker-Draining-dollars-from-our-students-10840529.php

Will Governor Malloy propose boondoggle for charter schools under guise of new education funding formula?

Connecticut’s existing school funding formula is unfair, inappropriate and unconstitutional.  It leaves Connecticut’s public schools without the resources they need and places an unfair burden on Connecticut’s middle income families.

The CCJEF v. Rell lawsuit, which should have been called the CCJEF v. Malloy suit, made the problem extremely clear.

The time has come to return to the fundamental principles that served as the underpinning of the Educational Cost Sharing (ECS) Formula before it was gutted by Governor Malloy and previous Connecticut governors and legislatures.

However, rather than step up and address the major flaws with the existing failed funding system, Governor Dannel Malloy made a thinly veiled reference today, in his State of the State Address, that he plans to propose a new state education funding formula, one that would likely pump even more scarce public funds to Connecticut’s privately owned and operated charter schools.

In addition, Malloy appears poised to suggest that any increase in education funding be restricted to only the poorest communities and that it come with strict new red tape and mandates, a move that will make it even more difficult for local school boards to provide students with the educational opportunities they need and deserve.

Since taking office in 2011, Governor Malloy has failed to adequately fund Connecticut’s real public schools, which in turn has translated to reduced programs and higher local property taxes – not only in Connecticut’s 30 poorest towns, but in communities across the state.

Compounding the problem, Malloy has successfully diverted more than $100 million dollars a year to Connecticut’s privately owned charter schools, despite the fact that these private companies fail to accept and educate their fair share of students who require special education services, those who need help learning the English language and those who have disciplinary issues.

Now as his time in office is coming to an end, Malloy appears unwilling to truly address the fact all public schools, not just those in the poorest districts, need additional state aid.

Instead Malloy’s speech today suggests that he is laying the ground work to further privatize public education, while saddling poorer cities and towns with even more mandates, rules and regulations.

Malloy’s flowery, but hollow, words today included the following;

 “Connecticut needs a new way to calculate educational aid—one that guarantees equal access to a quality education regardless of zip code”

It will be based on the local property tax burden, student need, and current enrollment.

The system will be designed to be more fair, transparent, accountable, and adaptable—meaning that it will provide flexibility to fit the needs of a given community.

The result will be a fairer distribution of our state’s limited funds.

And if we are successful in this effort, there will be an important ancillary benefit—we can help ensure that no Connecticut city or town will need to explore the avoidable path of bankruptcy.

To be clear, that kind of help shouldn’t come without strings attached. If the state is going to play a more active role in helping less-affluent communities—in helping higher-taxed communities—part of that role will be holding local political leadership and stakeholders to substantially higher standards and greater accountability than they’ve been held to in the past. We should do it so that increased aid doesn’t simply mean more spending on local government.

Stay tuned for what Malloy will really propose when he issues his budget next month.

You can read Malloy’s full speech here – Malloy State of the State address

Breaking News – In unprecedented maneuver, Malloy cuts $20 million in school aid in the middle of the fiscal year

As if it wasn’t bad enough that Connecticut already underfunds its public schools, under the effective darkness of the holiday week, Governor Dannel Malloy’s administration announced today that he is slashing $20 million from Connecticut’s Education Funding (ECS) Formula.

As testimony in the CCJEF v. Rell school funding lawsuit made clear earlier this year, Connecticut’s utter failure to properly fund its public schools is hurting Connecticut’s students, parents, teachers and schools.  The lack of appropriate state aid for education also unfairly shifts the tax burden onto Connecticut’s local property taxpayers … a move that disproportionately hurts Connecticut’s middle income families.

But now Malloy is making the situation even worse by cutting state aid for education to Connecticut’s cities and towns right in the middle of the school year, a tactic that will leave communities on the hook for making emergency cuts to programs or trying to come up with alternative revenue to maintain existing programs that are designed to benefit Connecticut’s public school students.

It was only a few weeks ago that Malloy and his operatives were intentionally misleading Connecticut voters by claiming that the state budget was balanced when a growing deficit was actually taking shape.

Now, rather than target wasteful spending, Malloy is aiming his budget ax directly at some of the state’s most important and vulnerable citizens.

By dumping his fiscal problems on local property taxpayers, Malloy continues his warped approach of coddling the rich at the expense of everyone else.

In addition, Malloy’s state department of education announced earlier this week that it is seeking proposals to fund even more charter schools, a strategy that will divert even more scarce funds away from public schools and to the private sector.

Check back for more on this breaking story in the days ahead.

NEWS FLASH – Malloy, State Employee Unions DROP KICK $13 billion plus onto the backs of our children

Governor Dannel Malloy, in concert with Connecticut’s State Employee Unions, have joined forces to shift a major portion of Connecticut’s massive unfunded pension liability onto the backs of Connecticut’s children and those yet to come.

Call it an outrageous effort to kick the can so far down the road that no one will be around to remember what today’s elected officials have done to the economic well-being of those who aren’t yet voters and those who haven’t even shown up on this earth.

Worse yet, the action will probably be taken without a vote of the Connecticut General Assembly.

Warning that such a disastrous deal would be forthcoming, Wait, What? published two recent commentary pieces on the topic.

Don’t shift Connecticut’s unfunded liability problem onto our children.   (Via CT Mirror 12-8-16)

And

Warning – Malloy likely to propose shifting State’s massive unfunded liability problem onto our children  (12-1-16)

But the warnings fell on deaf ears as Connecticut’s governor now seeks to duck significant responsibility for paying down Connecticut’s unfunded state employee pension fund.

As CT Mirror explains in a breaking story entitle, Malloy, unions strike deal to stretch out spiking CT pension costs;

Gov. Dannel P. Malloy announced a deal Friday with state employee unions that would allow Connecticut to dodge a fiscal iceberg by holding down annual pension costs otherwise set to spike over the next 16 years.

But to get that relief, Connecticut would shift at least $13.8 billion in estimated pension expenses owed before 2032 onto a future generation.

[…]

For now, though, the agreement shifts a heavy burden to a future generation on the argument that this one simply cannot afford to pay the full burden it faces.

The CT Mirror adds;

Under the new agreement, this year’s $1.6 billion annual cost essentially would remain flat next fiscal year. It originally was supposed to increase by about $84 million. But after that it would rise steadily until it reaches $2.2 billion in 2022.

It could remain there — depending on how pension investments fare — until 2032.

It would drop below $1.8 billion in 2033 and, from there, it would remain close to $1.7 billion through at least 2046.

[…]

The Malloy administration did not release an estimate Thursday of that lost investment opportunity. But a spokesman said the cost could be calculated in the coming weeks after an actuarial analysis of the new pension funding plan is completed.

This plan could be approved, under current legislative rules, without a vote from lawmakers, provided neither the House nor Senate vote to reject it within 30 days after the 2017 session begins on Jan. 4.

For more on this developing story go to: http://ctmirror.org/2016/12/09/malloy-unions-strike-deal-to-stretch-out-spiking-ct-pension-costs/

Don’t shift Connecticut’s unfunded liability problem onto our children (via CT Mirror)

A special thanks to the CT Mirror for posting Don’t shift Connecticut’s unfunded liability problem onto our children.  You can read and comment on this important issue at: http://ctviewpoints.org/2016/12/08/dont-shift-connecticuts-unfunded-liability-problem-onto-our-children/

Don’t shift Connecticut’s unfunded liability problem onto our children

Eroding revenues, red ink and poor fiscal management continue to undermine Connecticut’s state budget.  Unaltered, the present approach will make it increasingly difficult, even impossible, for our children and future generations to have a state government that fulfills its fundamental and constitutional duty to provide for a healthier, safer and more equitable society.

But the problem is about to get far worse.

The fiscal crisis facing Connecticut is severe, but rather than step up and truly address the crisis, Gov. Dannel Malloy and many state legislators continue to turn a blind eye to their responsibility, especially when it comes to addressing the failures of the past.

Since he took office in January 2011, Malloy’s fiscal policies have been based on a reckless strategy of coddling the rich, outrageous acts of corporate welfare, record cuts to Connecticut’s public colleges and universities, reducing the availability of vital public services and undermining public education … all while shifting more and more of the burden to pay for public services onto Connecticut’s regressive and anti-middle income property tax system.

Denying the very real fiscal problems that are facing the state, Malloy and his political operatives have bounced back and forth between denying the very existence of state deficits and lamenting the arrival of a new economic reality.

Many will remember that upon his arrival in the governor’s office, Malloy whined about the fact that he had “inherited” a $3.7 billion budget shortfall following the fiscally irresponsible policies of Gov. M. Jodi Rell and the Democratic-controlled Connecticut General Assembly.

However, rather than use his time in office put the state back on track, Malloy’s irresponsible budget tactics have further exacerbated Connecticut’s fiscal problems.

Proof of this growing disaster can be found in the reality that as the Malloy administration prepares to propose Connecticut’s next state budget, the state is faced with a projected biennial budget shortfall in excess of $3.3 billion and growing.

And by failing to resolve Connecticut’s year-to-year budget problems, the situation facing the state’s pension and retiree healthcare obligations has become particularly severe.

Now, having squandered the opportunity to institute a special income tax surcharge on Connecticut’s wealthiest taxpayers to pay down some of the massive debt and unfunded liabilities, the options are fewer and the problems are bigger.

If history is any lesson, Malloy’s “solution” to Connecticut’s fiscal crisis will be to propose another state budget plan full of gimmicks, but this time the issue will be compounded by a plan to dump even more of the responsibility for dealing with the state’s catastrophically high debt and unfunded liabilities onto our children and future generations.

It is certainly no secret that behind closed doors Malloy and his team are developing a proposed FY18-FY19 state budget built on more cuts to vital services, shifting even more of the burden for a college education onto the backs of Connecticut’s students and their families and significantly reducing the amount of municipal aid, thereby further increasing property tax rates on Connecticut’s middle income families.

What is less understood is that Malloy will likely propose walking away from Connecticut’s near term obligation to confront the state’s $74 billion debt and unfunded liabilities.

The truth is that for decades Connecticut state government has refused to properly fund its state employee and teacher pension and benefit plans.

Making matters even worse, Malloy and the legislature have been using the state’s credit card in inappropriate ways, including his decision to use borrowed funds to pay for his failed, but much heralded, corporate welfare program designed to pick winners and losers and reward companies he favors.

Now, all of these “chickens are coming home to roost.”  Yet rather than step up and take action to reduce state debt and adequately fund Connecticut’s pension and benefits funds, Malloy may propose “kicking the can down the road” by shifting even more of the burden onto Connecticut’s children and future generations, a maneuver that will dramatically increase the cost to taxpayers over time.

The harsh reality is that when faced with the critically important obligation to do what is right, Connecticut’s elected officials – Democrat and Republican – have remained committed to a motto that reads, “Don’t do today what you can put off until tomorrow.”

The result of such a tactic is not only exacerbating Connecticut’s fiscal problems, but condemning our children and future generations.

If Connecticut voters are not outraged, they aren’t paying enough attention.

Once again, weigh in on this important issue at: http://ctviewpoints.org/2016/12/08/dont-shift-connecticuts-unfunded-liability-problem-onto-our-children/