CANTON BUDGET FAQ

So, what is happening?

On May 14, a $55,089,729 budget failed at referendum by a vote of 1,447 - 796. As a result, the Boards of Finance, Selectmen, and Education have passed a new, reduced budget that will go to referendum on June 2.

We understand why voters said no. The economy is squeezing all of us right now – from the gas pump to the grocery store – and a budget increase of 8.41% with a mill rate increase of 4.81% was more than many Canton families felt they could absorb. The Boards heard voters and responded, making very significant cuts and applying additional funding sources, while trying to minimize the impact on Canton residents. The revised budget is lean and responsible – and it deserves your YES vote on June 2.

How is the new budget different?

The new budget is $53,784,729, representing a 5.84% increase in spending and – critically – only a 1.32% increase in the mill rate. For the median Canton homeowner, that translates to approximately $121 per year. You can use the Town’s online Mill Rate Calculator to estimate your specific household impact.

Each of the three Boards made significant cuts to achieve this reduction:

• Board of Finance: $430,000

• Board of Selectmen Operations: $43,000

• BoS Capital Improvement: $457,000

• Board of Education: $375,000

• Total reduction: $1,305,000

In addition, this budget budget applies funds from new state aid authorized by the legislature in May and from municipal cannabis tax revenues to further reduce the tax increase.

Wait – if the budget increase is 5.84%, why is the tax increase only 1.32%?

The tax increase is much lower than the budget increase because Canton’s Grand List (the town’s total taxable property value) grew by 6.8%. That means more property value to spread costs across, so the per-taxpayer impact is smaller than the raw budget number. Also, the State has authorized substantial additional aid to towns, and the Board of Selectmen has made new use of cannabis tax revenues. That’s why, while the budget increase was reduced by more than 30% (from 8.41% to 5.84%), the tax increase was reduced by almost 75% (from 4.89% to 1.32%).

Either way, is this a reasonable increase?

It is, and here’s why:

This is a stability budget, not a growth budget. Most of the remaining increases are driven by factors largely outside local control:

• Healthcare costs are up 20% this year. This is the single largest cost driver across both the town and schools.

• Regional inflation is running at 3.6%, which puts upward pressure on everything from utilities to supplies.

• Contractual salary obligations for teachers, police, public works, and other employees are required under collective bargaining agreements, which in turn are affected by the same inflationary trends.

• Special education costs continue to rise, driven by state and federal mandates, and even with the new state aid continue to be underfunded by the state.

Also, while greatly reduced, this budget continues to make long-term investments in our roads, buildings, and other infrastructure, as well as rebuilding our depleted fund balance (which affects borrowing costs), all of which is designed put Canton on a sound long-term footing and avoid having to pay more later for a small tax decrease today.

What was cut after the first referendum failed?

The largest discretionary increases in the original budget have been reduced substantially. The capital improvement budget – which had originally been increased to address more than a decade of deferred maintenance – was cut by $457,000. The Board of Finance cut $430,000 from its own budget, reducing the amount it was setting aside to rebuild the Unassigned Fund Balance. The Board of Selectmen cut $43,000 from its operating budget, and the Board of Education cut $375,000, which is on top of the $200,000 it had already been required to cut before the first referendum.

Why did the original budget increase so much in the first place?

In addition to the non-discretionary increases noted above (rising costs for health insurance, energy, and numerous other town purchases; contractual salary obligations; state and federal mandates), two items drove the increase:

First, the Capital Improvement budget went up by $900,000 to begin addressing well over a decade of deferred maintenance that was leading to leaking roofs, crumbling roads, and aging infrastructure. This was ultimately the right thing to do, but increasing capital spending by that much in one year, especially given the current economy, was more than voters could accept.

Second, the Board of Finance budget increased by $700,000 in an effort to restore the Unassigned Fund Balance to the 15% level recommended by bonding agencies to maintain Canton's AAA bond rating and thereby reduce Canton’s long-term borrowing costs.

Each of those figures has been reduced substantially, as the Board of Finance takes a more gradual approach to restoring Canton’s physical and fiscal infrastructure.

What does this budget fund?

The budget still supports most of the services Canton residents rely on every day:

• Roads and infrastructure improvements

• School safety and facility upgrades

• Library services and senior programs

• Public safety (police, fire, EMS)

• Community services, including contributions to the Roaring Brook Nature Center and Interval House

The Board of Education is still the biggest part of the budget. Are our schools worth the cost?

Absolutely. Canton’s investment has supported an excellent school system. Canton High was named one of only seven Schools of Distinction in Connecticut by the State Department of Education and ranked the 23rd Best High School in Connecticut by U.S. News & World Report. Cherry Brook Primary was also recognized as a School of Distinction, scoring in the top 10% of schools statewide. On state science exams, 89.9% of juniors scored at or above proficiency – the number one score in the entire state.

Canton spends $23,946 per pupil, which is below the state average of $24,270 and ranks at just the 15th percentile in its peer group. In other words, Canton delivers outstanding results at a below-average cost. That doesn’t happen by accident. It reflects years of steady, responsible investment in our schools.

Strong schools are a major reason people choose to live in Canton, and they help protect property values and make Canton a great place to live, which benefits all of us.

What happens if the budget fails again at referendum?

The cycle would repeat itself with a further round of cuts and a further referendum until a budget passes.

If necessary, the Board of Finance has authority to set a temporary mill rate, and we would pay taxes based on that figure. If the figure that ultimately passes is different, the town would calculate the difference and either issue refunds or collect additional amounts owing. All of that would, of course, involve administrative cost.

It is also possible that multiple failed referenda could have a negative effect on our bond rating, meaning it could cost us tax dollars in the long run (even beyond the effect of additional cuts to the Unassigned Fund Balance that would likely be necessary if this budget fails).

What would be cut if this budget fails?

That would depend on the new budget limits set by the Board of Finance and the specific line items cut by the Boards of Education and Selectmen. While we don’t know for sure what will be cut, it is safe to assume that each round of cuts will be more painful than the last.

I keep hearing complaints about the phase-in of the property revaluation and how that is increasing taxes for town residents. Is that true?

No. This is the third year of the four-year phase in of the 2024 revaluation. The phase-in was approved in 2024 by vote at a public town meeting and continues its intended purpose of reducing taxes for town residents, although how it affects each individual taxpayer depends on their specific property valuation. In all, about 73% of residents have experienced and will continue to experience reduced taxes because of the phase in. Since the phase in is now ¾ complete, the average tax savings will be less than last year, but most of us will still see savings. Next year, the phase in will be complete, and it will have no effect (either up or down) on the taxes that any of us pay.

The bottom line:

A YES vote maintains town and school staff and the current level of services. A NO vote leads to deeper cuts with real consequences for every Canton resident, including significant service cuts and/or irresponsibly returning to the days of deferred maintenance and underfunding the Unassigned Fund Balance.

I have other questions and concerns about the budget.

We want you to understand the issues involved and feel comfortable voting YES. If you have a question about the budget, you can write to Brian Miller, Board of Finance Chair, at cantonbofchair@gmail.com, or Zoe Peak, Finance Director, at zpeak@townofcantonct.org. For questions about the education budget, you can also write to Lou Daniels, Board of Education Chair, at ldaniels@cantonschools.org.

I am convinced that it is important to vote yes. Where and how do I vote?

The Budget Referendum is on Tuesday, June 2, 2026, from 6:00 a.m. to 8:00 p.m., at the Canton Community Center, 40 Dyer Ave., Canton, CT 06019. Absentee Ballots are available from the Town Clerk. Please make your voice heard – vote YES on June 2!