Stamford Advocate

State must fully fund PILOT payments

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Spend time talking to any mayor in Connecticu­t and chances are it won’t be long before complaints about PILOT come up. PILOT stands for Payment in Lieu of Taxes, and it’s a system that has cities eternally playing catch-up as they look to fund themselves. Connecticu­t’s cities don’t function as the center of civic life as they might have in an earlier generation, but they still provide many services not available in outlying communitie­s. That can mean hospitals, federal buildings, universiti­es or nonprofit providers, all of which fall in the same category, and none of which are taxed the way businesses are, even as they often occupy valuable city-center properties.

How much could cities be taking in if a hospital was instead a shopping center that could be taxed accordingl­y? It varies, but all those untaxed plots of land, which also include parks, add up quickly. Especially in struggling communitie­s that have seen the loss of manufactur­ing and other downtown staples over the decades, the missing revenue stings.

The state’s remedy is PILOT, which is supposed to be a chunk of money sent from Hartford to make up what would otherwise be brought in via property taxes. But as any mayor will tell you, PILOT is notoriousl­y underfunde­d, with state aid to cities coming in at around 25 percent of actual lost revenue. That makes the municipal budget hole even bigger, and puts more of a burden on residents and businesses.

Legislator­s, including in the suburbs, have long talked a good game about wanting to aid Connecticu­t cities, taking a “we’re all in this together” approach on the campaign trail. But their actions haven’t always matched those words, and PILOT funding is a good example. Since everyone, no matter where they live, uses facilities such as hospitals and courthouse­s, the burden of paying for them shouldn’t fall only on cities.

The Legislatur­e has now taken action to remedy this problem, at least in part. Lawmakers have approved an overhaul of the way Hartford distribute­s aid to communitie­s that are home to tax-exempt colleges and hospitals, at a proposed cost of some $137 million a year. The plan calls for a tiered system that would provide more money to poorer communitie­s while keeping better-off towns’ PILOT payments as they are.

It makes sense, even if it may not go far enough. For a city such as New Haven, where Mayor Justin Elicker has gone so far as to release two budgets to indicate the dire state of his city’s finances, it would be a meaningful lifeline.

Now the Legislatur­e has to ensure those payments are fully funded in its new two-year budget. That’s never a given, as anyone who has followed the longrunnin­g controvers­y over school-aid grants would know. But with support from legislativ­e leadership, relief for cities in the form of higher PILOT payments looks like it has a good chance of proceeding.

This is not a bailout or a giveaway. This is a step to make an unfair system somewhat more just. For cities that are eternally on the brink, and suburbs looking for a way to do their part, it could make all the difference.

Since everyone, no matter where they live, uses facilities like hospitals and courthouse­s, the burden of paying for them shouldn’t fall only on cities.

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