Harp Not Anxious To Tax Hospital

New Haven may win the right to tax Yale-New Haven Hospital’s real estate, but Mayor Toni Harp isn’t so sure New Haven should take up the offer.

In his new budget proposal, Gov. Dannel P. Malloy proposed allowing cities like New Haven to tax the real estate of not-for-profit hospitals like Yale-New Haven.

At first glance, that would provide a windfall for the city. Mayor Harp said Monday the city would be able to collect $33.8 million a year in taxes if Yale-New Haven’s $1.3 billion in exempt property comes onto the rolls.

That money would particularly come in handy if a second part of the governor’s proposed budget passes: a new requirement that cities and town pay a third of the cost of teacher pensions. That would hit New Haven with a $14 million new burden, Harp estimated.

But the governor’s proposals were just the opening round of budget negotiations that will last through the spring. The final reckoning — including how to patch a $1.7 billion projected deficit while also responding to a judge’s order to fund schools more fairly — is expected to look far different.

In the meantime, Harp argued that the hospital-taxing idea might not work out as envisioned.

For starters, she argued, it depends on the hospitals being able to recoup the lost money through new Medicaid reimbursements from the federal government. Harp predicted that, especially given the stated determination of Republicans in Washington to dismantle the Affordable Care Act, that money may never materialize.

“I think it’s precarious,” Harp said during an appearance on WNHH radio’s ​“Mayor Monday” program. ​“It might be something that would be very difficult for us to hang our hat on. If we had a different administration in Washington, perhaps. But even there, I’m not really sure that given the way that the state already taxes hospitals, that we can make an argument that it would be prudent to tax them even more.”

Harp said she prefers a proposal advanced by the advocacy group Connecticut Voices for Children. It would institute a statewide property tax from which proceeds would fully fund the Payment in Lieu of Taxes (PILOT) program that reimburses cities for revenues lost on tax-exempt state, university and hospital properties. New Haven currently receives less than 40 percent reimbursement under that program, Harp said. Under full PILOT funding (which would amount to 70 percent reimbursement), the city would collect another $95 million a year, she estimated.

Hospitals statewide, including Yale-New Haven, have vowed to fight Malloy’s proposal, saying the state already taxes them enough. Yale-New Haven’s group of four hospitals pays over $200 million a year in state taxes, according to Vice-President Vin Petrini. He called the idea of adding new taxes ​“a non-starter.” (Click here to read a CT Mirror story detailing the proposal and the statewide reactions.)

Gov. Malloy has for years argued that hospitals like Yale-New Haven can well afford to pony up more money to budget-strapped governments; in its tax return for the fiscal year ending June 30, 2015, Yale-New Haven reported earning $138.56 million more in revenues than it spent. Petrini Monday said that money gets reinvested in new equipment, recruitment of physicians and creation of new jobs. He said that the state has been progressively squeezing hospitals on reimbursements for care for the poor: Whereas Yale-New Haven used to receive 70 cents on the dollar back for Medicaid services, the state has cut the figure to 35 cents — even as eligibility for Medicaid has expanded under the Affordable Care Act.

Niko Redux

Also on ​“Mayor Monday,” Harp said she believes city public works crews did a good job clearing the streets after last Thursday’s 14-inch snowstorm. More people than ever have been getting the message about moving their cars from the odd sides of residential streets so plows can get through, for instance. She noted that public works crews worked double shifts, and were able to continue picking up trash on schedule in addition to plowing the streets.

People defying the odd-side parking ban made it impossible to clear some narrow streets, especially in East Rock and the Hill. Harp suggested that the city might flyer those streets when the next storm hits warning drivers that their cars will be tagged and towed unless they’re moved. (The city tagged and towed 268 cars Thursday night into Friday morning.) Harp also said crews may have gotten to a few spots, like Chapel Street, too late to remove an initial layer of packed, slippery snow. Overall, though, she said, she’s pleased with her team’s response to Winter Storm Niko, and looks forward to continuing to make improvements.

Click on or download the above audio file to hear the full episode of WNHH radio’s ​“Mayor Monday.”

The episode of was made possible with the support of Gateway Community College and Berchem, Moses & Devlin, P.C.

Following is a status report on bills of particular interest to New Haven before the state legislature this session:

The 2017 Agenda

Bill #	Status	Summary	Sponsors
SB11/ HB5539	Committee Denied	Would legalize, tax recreational use of marijuana.	Candelaria Dillon Lemar Walker Porter et al
SB 17	Committee Approved	Would make certain undocumented immigrant students (DREAMers) eligible for state college financial aid.	Looney
HB 5434	Committee Approved	Would have CT join with other states to elect the President based on popular, rather than Electoral College, vote.	Winfield, Porter Albis Elliott D’Agostino et al.
HB 5458, HB 6058	Committee Approved	Would establish electronic tolls on state highways.	Genga
HB 5575/HB 7126	Passed Senate	Would regulate companies such as Uber and Lyft.	Scanlon
HB 5589	Passed House	Would expand disclosure requirements for contributions to campaign funds.	Dillon Lemar D’Agostino Elliott et al.
HB 5591	Passed House	Would require equal pay for employees doing comparable work.	Dillon Walker Lemar Albis D’Agostino Elliott et al.
HB 5703	Committee Denied	Would have CT enter into an agreement with other states to limit ​“poaching” of each other’s businesses.	Lemar
HJ 13/HJr 95	Passed House	Would amend the state constitution to permit early voting.	Lemar
HJ 16	In Commitee	Would amend the state constitution to permit absentee voting for all voters.	Lemar
SB 1/HB 6212	Committee Approved	Would require employers to provide paid family and medical leave for their employees.	Looney
SB 2	Committee Approved	Would make the education funding formula more equitable.	Duff
SB 8	Committee Denied	Would allow municipalities to adopt a 0.5% sales tax.	Looney
SB 10/HB 5743	Passed Senate	Would strengthen hate crime laws.	Winfield
SB 13/HB 6208/HB 6456	Committee Approved	Would increase the minimum wage.	Looney Winfield et al. Albis Candelaria D’Agostino Elliott Lemar Paolillo Porter Walker
SB 137	Committee Denied	Would expand birth-to-three and provide universal pre-school, among other things.	Gerratana
SJ 5/HJ 1	Passed House	Would amend the state constitution to create a ​“lock-box” for transportation funding.	Duff
HB 5588	Committee Denied	Would limit certain bond allocations.	Dillon Lemar Albis Walker Elliott et al.
HB 5912HB 6127	Committee Denied	Would establish a 1‑cent/ounce tax on sugared beverages.	Lemar Elliott et al.
HB 6554	Committee Denied	Would tax carried interest as ordinary income.	Porter Albis Lemar Elliott Winfield Candelaria Dillon D’Agostino et al.
HB 5831	Committee Denied	Would provide bonding for transitional housing for NH female ex- offenders.	Porter Candelaria Lemar Winfield Looney Paolillo
SB 631	Committee Denied	Would provide bonding to make structural improvements to the Shubert Theatre.	Winfield Looney Walker Porter Lemar Candelaria Paolillo
HB 6863	Committee Denied	Would authorize bonds for renovating the Barbell Club as a youth/ community center.	Canelaria Porter Paolillo Lemar Winfield
SB 649	Committee Approved	Would allow local building officials to impose fines for building w/o a permit.	Looney Winfield Walker Candelaria Lemar Porter Paolillo Et al.
SB 590/591	Committee Denied	Would limit police ccoperation w/Immigration and Customs Enforcement (590); establish an immigrant’s bill of rights	Winfield
SB 20	Committee Denied	Would require affordability to be considered in reviewing proposed health insurance rate hikes.	Looney
HB 6352	Committee Approved	Would establish a deposit system for car tires.	Ritter Gresko McCrory
HB 6901	Committee Denied	Would impose a surtax on large employers that pay an average wage less than $15/hour.	Elliott
HB 7278	Passed Senate	Would convey various parcels to New Haven, among other things.	Gov’t Administration and Elections