By CHRIS POWELL
Despite the claim made by former Hartford Mayor Luke Bronin’s congressional campaign that he had “straightened out” the city, his successor, Arunan Arulampalam, has found himself with a lot more straightening out to do. Hartford’s financial condition remains dire even after the $500 million state governor bailout enjoyed by Bronin’s administration.
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Arulampalam fears that the city’s property revaluation, due to take effect in October, will devastate what’s left of Hartford’s homeowners, whose numbers city government is striving to increase.
The problem isn’t Arulampalam’s fault. It’s mainly a matter of inflation, technology, and state government’s mistaken policies.
Inflation has driven up residential property valuations, which homeowners like in theory until they realize that they can’t benefit from a higher valuation until they sell their homes, until which time they must pay more in property taxes.
State government’s long failure to facilitate enough housing construction has also driven up residential property values. After all, everyone who owns residential property has a financial incentive to keep housing scarce.
Then there is the simultaneous collapse of commercial property values as white-collar workers increasingly work from home. Downtown Hartford’s office towers are now half empty and while demand for housing is high, converting office buildings to housing is difficult and expensive.
The collapse of office building valuations might not be so bad in Hartford if the Lamont administration hadn’t just defaulted again to the state employee unions about “telework,” failing to achieve a new master union contract that would have authorized state agencies to require employees to come back to their offices. The Lamont administration’s nominal policy is that state government employees are so efficient that they don’t need in-person supervision. The administration’s real policy is that it must capitulate to the unions on anything important to keep them supporting the Democratic Party in an election year.
Then state policy — collective bargaining for state and government municipal employees and binding arbitration of their contracts — makes it almost impossible for Hartford city government and all municipal governments to economize with their biggest expense, employee compensation. In effect state government policy is that when times get tough economically, financial sacrifice must fall exclusively on taxpayers.
When he was Hartford’s mayor Bronin tried to get financial concessions from city employee unions, and he was denounced for it by his rival in the recent primary campaign for Democratic nomination for Congress in the 1st District. Bronin was called an enemy of organized labor for seeking those concessions, as if the only labor that counts is members of government employee unions, not people who work in the private sector, unionized or not. Bronin easily survived the charge and won the primary.
Quite apart from the impediments in state labor law, Hartford city government doesn’t try too hard to reduce its own expenses, as shown by the recent scandal in City Hall, where the recently resigned treasurer spent tens of thousands of dollars on luxury junkets.
But Mayor Arulampalam’s solution to the looming disaster of Hartford’s property revaluation is just to delay it by a year. State government has authorized the delay and now it’s up to the City Council. This would perpetuate the unfairness to owners of business property, risk more real estate bankruptcies, and discourage business relocations to city properties whose valuations remain artificially high.
Since business owners are a minority, they are easily sacrificed to solve the political problem. But sacrificing them won’t solve the city’s financial problem. The city always operates at a loss, dependent on frequent bailouts from state government through increased financial grants, often euphemized as “aid to education.”
Arulampalam seems to think that if the revaluation is postponed a year, safely past this November’s state election, the city will get more bailouts from state government without having stirred up controversy and taxpayer fears and resentment during the campaigns for governor and the General Assembly, thereby helping the Democrats to retain power. The mayor may be right, if not courageous or imaginative. But then no hardly anyone in authority in Connecticut is.
Chris Powell has written about Connecticut government and politics for many years. (CPowell@cox.net)