The most recent state budget proposal, the “compromise” bill proposed by Governor Dannel Malloy, will phase in payments by towns to the teachers pension plans, impacting local budgets.
In Branford, the proposal would see the town pay $619,270 in the 2017-18 fiscal year, and that increase to $1,278,792 in fiscal 2019.
Aid to the town would also drop from current levels, although much less than Malloys past proposals.
Total municipal aid would drop to $2,876,579 in fiscal year 2018, and see a slight overall increase to $3,006,890 in 2019. The current year aid was $3.6 million.
When the new pension payments are combined with the decreases in aid, Branford’s total state impacts see it go from just over 3.6 million in the 2017 fiscal year down to $2.257 million in 2018 and down to 1.728 million in 2019.
The plan also sees sales tax increased to 6.5%, which is still less than neighboring towns, but restaurant tax pushed up to 7%.
Branford is well prepared to cover the changes due to proactive budgeting, but the numbers still represent a decrease in overall town aid, and a new charge for teacher pensions annually, which will significantly impact budgets moving forward.