Governments in Connecticut stand at a crossroads. For over a decade prior to the Great Recession, governments in the state benefited from a strong economy and stable revenue. But this stability depended on reliable, adequate state aid and the local property tax. The lack of diversity in revenue sources and uncertainty at the state level are now eroding the capacity of local governments to meet their obligations to the public.
Fundamental changes are needed to ensure that local governments can meet the future needs of the state. The purpose of this report is to outline and recommend a set of changes intended to both improve the performance of local governments and diversify their revenue sources.
Acknowledgement: This report was prepared by Dr. Lawrence Walters (Emeritus Professor of Public Management, Romney Institute of Public Management, Brigham Young University). Appendix B was drafted by Dr. Gary Cornia (past-President of the National Tax Association and Dean of the Marriott School of Management, Brigham Young University). CCM staff were extremely helpful in providing valuable insights, identifying key resources and arranging important interviews without which the report could not have been completed.