Governor Rell a Hit at Chamber Lunch in Old Saybrook, CT

OLD SAYBROOK - Cars quickly filled the parking lot as residents representing businesses across the shoreline came out to the Jan. 22 Old Saybrook Chamber of Commerce luncheon at Saybrook Point Inn which featured a presentation by Republican Governor M. Jodi Rell.

Along with business leaders, local officials attending the event included Old Saybrook First Selectman Michael Pace, Old Saybrook Selectwoman Velma Thomas, Old Saybrook Police Department Chief Edmund Mosca, and Old Lyme First Selectman Timothy Griswold.

After enjoying a salad, rolls, chicken, and chocolate cake, Rell promised those in attendance that she had two goals for the budget this year: to not exceed the constitutional cap on spending and to not raise any taxes.

On a day when the Dow Jones plummeted more than 500 points, Rell said she previously met with economists who predicted that the country will face a recession between now and the end of March and Connecticut will follow that trend.

"While across the nation home prices have been falling, in Connecticut they have been holding steady but sales declined because not a lot of people have been selling homes," Rell said.

Optimistically speaking, Rell explained that state revenues from income and sales tax remain steady while revenue from the state corporate tax was the only one seeing a decline.

Unemployment hit five percent in Connecticut, Rell said, but is still below the national average.

While some jobs have been created in Connecticut, other companies have laid workers off.

"I know I need to be careful in spending this year," Rell said, after explaining that supported she an increase in the Education Cost Sharing fund in 2007 while signing off on a $2 billion transportation package in 2006.

Rell then spoke of her proposal to cap the ability for municipalities to raise property taxes to a maximum of three percent per year. Under Rell's proposal, municipalities would be able to raise property taxes higher than that in case of emergency or by a municipal referendum. "I'm more than willing to be flexible in my proposal; I'm the only one to put an offer on the table. If you don't like it, craft another," Rell said. In Massachusetts there is a two and a half percent property tax cap while New Jersey has a four percent cap. In all, Rell said 42 states have property tax caps or limitations on what towns can do regarding property taxes.

"If we don't do something people will leave," Rell said, referring to many overburdened residents who already have relocated to other states with lower taxes.

While Rell said she understands the concerns of towns and cities which are asking for more state funding, she said, "I promise if I had more money I would give it to you."

Currently, both the UCONN Health Center and the Department of Corrections face multi-million dollar deficits.

Rell praised recent legislation that provided tax cuts aimed to encourage film companies to do more production in Connecticut which would create more jobs.

Just recently, Blue Sky Studios announced that it will soon be moving into Greenwich.

State funds have funded various performing arts theaters across Connecticut including the Warner Theater in Torrington, the Palace Theater in Waterbury, and Old Saybrook's Katharine Hepburn Cultural Arts Center, which is expected to open this summer.

"I don't mind helping businesses or corporations with capital funds such as a new boiler or a new building as long as they meet us part way. Some organizations have exceeded that and asked for operating funds," Rell said, adding that there is not enough money to provide operating funds for everyone and that providing it for some and not others would be unfair.

At the end of her presentation, Rell was given a Hepburn Cultural Arts Center sweatshirt, hat, and porcelain pin in appreciation of the more than $800,000 in capital funds that came from the state through various grants.

Pat Schneider, Marketing Chair for the Hepburn Theater, said she is selling those items along with other sportswear, colorful tote bags, umbrellas, and copies of the autographed best seller "At Home with Kate" written by Ellen Considine-Meara whose mother was Kate's housekeeper.

Schneider said those items will be sold at a table outside the second level conference room of Old Saybrook Town Hall on Tuesdays between 11 a.m. and 3 p.m.

Funds raised will go toward the theater and those interested in purchasing items outside of those hours should call 860-395-3139.