August 25, 2017

Report: Municipalities already seeing PILOT payment declines

The front entrance to Hartford Hospital, Hartford HealthCare's flagship campus.

As Gov. Dannel P. Malloy pushes to remove property tax exemptions for hospitals, the amount the state has been reimbursing cities and towns that are home to nonprofit care providers, and colleges, has been dwindling.

Payment in lieu of taxes (PILOT) funding to municipalities for colleges and hospitals combined has been in decline since it reached a peak of nearly $125 million in fiscal 2015. In fiscal 2017, that funding was reduced to just under $115 million, according to new data released in a report the governor commissioned, which asserts that municipal aid has grown 21 percent over the last five years.

The PILOT program provides payments for real property tax losses due to exemptions applicable to eligible private colleges and hospitals.

In February, Malloy proposed that cities and towns be allowed to levy a property tax on nonprofit hospitals while offsetting hospitals' liabilities with new state and federal funding, a step hospitals roundly criticized.

In the report, with respect to healthcare providers, funding for the city of Hartford, which is home to the St. Francis Hospital and Medical Center and Hartford Hospital, among other nonprofits, declined to $23.6 million in fiscal 2017 from $25.3 million in fiscal 2015. In 2011 Hartford received $25.6 million.

In New Haven, home to Yale-New Haven Hospital and Yale University, PILOT funding dropped to $40.7 million in fiscal 2017 from $43.5 million in fiscal 2015, the report shows.

Smaller towns like New Britain, home to the Hospital for Special Care and Central Connecticut State University, show varying degrees of declines and increases. In New Britain's case, the dropoff was slight, to $2.5 million in fiscal 2017 compared to $2.7 in fiscal 2015. In most smaller towns, the declines have been small but consistent over the past three fiscal years.

Free E-Newsletters

Sign up now for our daily and weekly
e-newsletters! Click Here

Today's Poll Should the state of CT eliminate its tax-free week to save money?<>
Most Popular on Facebook
Copyright 2017 New England Business Media