“Councilor Wants Hooksett To Join Suit Against State”
Budget: Towns, school districts object to state reducing its contribution to employee retirement funds.
HOOKSETT - Hooksett Town Councilor David Boutin says the state is passing its costs onto the towns and he, for one, doesn’t want to stand by and let it happen.
What has him concerned is that the state, in its new budget, will decrease its contribution to the statewide police, fire and teacher retirement fund by 10 percent over the next two years.
The state has traditionally matched 35 percent in funding since the retirement program began decades ago. By the end of the 2011 fiscal year, that contribution will drop to 25 percent.
Judy Silva, the government affairs counsel for the Municipal Association at the Local Government Center, said it adds up to about $27 million that local governments and school districts will have to make up on their own over the two-year period.
“It’s a lot of money in these difficult times,” Silva said. “It’s a cost that the cities and towns did not pay because the state had always paid.”
Boutin, also a state representative, said he thinks that shifting the economic burden to the towns is unconstitutional.
He said he will urge his fellow Hooksett town councilors to join a lawsuit organized by the Municipal Association to protest the cuts.
“The state is not allowed to pass unfunded mandates against the local communities,” Boutin said.
“I’m going to argue what the state is doing is unconstitutional. It’s downshifting an unreasonable burden to the town of Hooksett.”
Hooksett could join the lawsuit that more than 100 towns and school districts have already signed onto for about $2,200, Boutin said. He thinks it’s a small price to pay considering the amount the town stands to lose.
“I want to stress to the concil that this legislative action is a catastrophe for local budgets and the property taxpayers are going to have to pay for it,” he said.
“I hope that they (vote to join the lawsuit) because ultimately the downshifting of state responsibility to towns is going to shift a disastrous burden to the property tax payers.”
In the meantime, while Silva says towns and school districts are contributing a larger chunk into the retirement pool under much protest, Boutin said he wants Hooksett to take it one step further.
“The second part of the conversation is do we want to consider establishing an interest bearing escrow account until the litigation is resolved?” Boutin asked.
Hooksett taxpayers would have to make up about $170,000 over the next two years to fund the portion of the police, fire and teacher retirement pool that the state has traditionally paid. Boutin wants the town to freeze that amount in an account until the lawsuit is settled.
“In the unlikely case - because I really think we have a very strong case - that the court rules in favor of the state, the money would be in (the account) with interest and we would just send the money,” he said.
The Hooksett Town Council will discuss this issue among others at its next regular meeting at 6:30 p.m. Aug. 5 in the Hooksett town offices, 35 Main St.
Sausser, Lauren. Councilor wants Hooksett to join suit against state. New Hampshire Union Leader. 2009 Jul 25;Sect.B:2(col.3)
