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State Aid to Cities Can Spur Growth
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Business New Haven
4/20/1998
By: Jennifer M. Gangloff
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New Haven State Sen. Toni Harp (D-10) is lately in the news for becoming embroiled in partisan political squabbles which threaten to deny the three-term lawmaker the Democratic nomination for her own seat. BNH spoke to Harp about state aid to urban areas, especially following Gov. John G. Rowland's recent proposal to provide a record $350 million as part of a state-assisted development plan for Hartford over the next decade.
Where do you stand on government spending for cities?
In a state like Connecticut that relies so heavily for funding of municipal services through the property tax, it's really important to give aid to some of its cities. I'm thinking of New Haven in particular. New Haven is almost 300 years old [Ed. note: 361 years old] so most of the property has been developed, so it has less ability to expand its property tax base. It's a catch-22 in many ways. Large cities require a lot of services, which costs a lot in terms of resources. But we only have one strong way to raise funds to pay for those services, and that's the property tax. That makes our property tax disproportionately high vs. our suburban neighbors, which have more free land for development, and so companies are moving out to suburbs with a lower mill rate.
Where does private enterprise factor into the equation?
Private enterprise has to be a participant in the development. No one would expect the state to foot the entire bill. Actually, the state is doing this so it can attract private enterprise, so they become partners.
What kind of public-private funding split makes the most sense generally?
It depends on the project. In one case it might make sense for the state to put in 30 percent and private enterprise 70, or the state ten in another project and private 90. There needs to be flexibility to look at what will make it a viable project.
What about public input?
The public has a role to play in making a determination about how resources are spent and what they're spent for. A prime example of that is the UConn football stadium, where the public is being asked to invest millions of dollars in a stadium that has all kinds of access issues and, according to some people, would have a negative impact on communities around the campus. It has to be a project that has the critical mass of support because we're using everybody's money to do it.
Do you support state funding for a Long Wharf mall?
I'm very excited about the prospect of having a mall in New Haven. Connecticut can't allow its cities to die. If we build a mall in competition with the mall in Milford, and use state resources, some say that would be unfair competition. On the other hand, people argue that if we have an upscale mall in New Haven, it would have very little impact on the type of mall they have in Milford.
How can government tangibly help urban neighborhoods?
We need jobs, and thriving business and industry can provide those - but we have to be able to attract the companies. Basically, what government is doing is providing a more level playing field so that cities can actually be considered by private business as good sites to locate.
What are some other ways government can revitalize cities?
I think cleaning up brownfields is very important and would be helpful to cities. Connecticut is moving a little slower on this. We're just coming out of an economic recession; we've only been out for maybe a year, and we've been really focused on trying to get our economic house in order. We can look at different sales tax initiatives, like the tax-free day in New York City and special tax districts. And we shouldn't have Bradley or New York airports as the only ones really serving Connecticut. We need to expand Tweed-New Haven Airport and make it more functional to meet business needs.
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