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East Haddam board weighs how to use $177,000 in new state aid as guidance from OPM remains unclear
Summary
Town finance staff told the Board of Selectmen that Connecticut’s Office of Policy and Management is offering roughly $35,000 in supplemental town aid and about $142,000 for schools; the board agreed to consult town counsel and the Board of Finance before deciding whether to amend budgets or lower the tax levy.
The East Haddam Board of Selectmen on Wednesday discussed how to handle roughly $177,000 in supplemental state aid after Finance staff said guidance from the Connecticut Office of Policy and Management (OPM) leaves room for interpretation.
Valerie Bellas, the town’s finance director, told the board the funding arrives in two tranches: “the supplemental town aid is, 40 35,000 and change, and the supplemental education aid is a 142 and change.” She explained OPM’s letter offers two choices for each tranche: amend the adopted budget to increase expenses and revenues by the grant amount, or adjust the tax levy to reduce collections.
The options carry different operational effects. Bellas said, for an example property assessed at $250,000, the town-side adjustment would lower annual taxes by about $6.38 — a modest per-household reduction — while using the money to restore a vacant staff position could preserve municipal services. “It seems to me it’s more practical to use the $35,000 to provide a service,” the chair said.
Board members pressed staff for clarity on the vehicle for the education funds and whether the town’s prior decision-making — including a referendum and the timing of a governor’s signature — affects options. Bellas said OPM advised the town to consult counsel and that the Board of Finance will need to set a mill rate promptly to meet processing deadlines. “We need to make a decision quickly by Monday,” she said, urging the selectmen to coordinate with board of finance members and the Board of Education.
Members noted the money is a one-time payment and cautioned against relying on it for ongoing expenses. One selectman asked whether restoring a staff position would be wise if the funding does not recur; the board discussed using the funds for one-time needs or temporarily maintaining positions while tracking long-term implications.
Next steps: staff will prepare visuals and options showing how each approach — budget amendment or tax-levy adjustment — would affect the mill rate and public services, and the selectmen asked the town attorney, the Board of Finance and the Board of Education to review the OPM guidance before the board considers resolutions at its next meeting.
