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.