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Newtown First Selectman speaks out against teacher pension contribution plan

As the state budget process moves forward, The Council of Small Towns is urging the legislature to take off the table Governor Malloy's proposal to have municipalities pay a third of teacher pensions.  Newtown First Selectman Pat Llodra says it would have a devastating effect on their budget and on taxpayers.  She called on lawmakers to take a thoughtful, comprehensive approach that will address the issue fairly and without overburdening municipalities.


Llodra says the proposed budget would pass on a tax increase of almost 6-percent without taking into account local needs.  She says they will be forced to cannibalize their own programs. 


She called the idea a tipping point to disaster.


Small town officials question the legality of the proposal saying it may violate pension obligation bonds.  The Governor's office disagrees.  Because the Teachers' Retirement System is a state-run, state-managed pension fund, officials question if this proposal is legal. 


Teachers pay 6 percent of their salaries into the fund.  The state pays 100 percent of the employer's share.


The proposal requires cities and towns to contribute $407.6 million in fiscal year 2018 and $420.9 million in fiscal year 2019.

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