Tuesday April 20, 2010 7 p.m.
Present: Chairman E. Bernard Plante, Joseph Coggans, Kenneth Schold, Francis King, Brian Stowell, Town Manager Bob Spain
School Committee members: Chairman Jane Brady Pojani; Thomas Clawson, Arthur Corey, William Borowski; Superintendent Susan Hitchcock (Absent: Leslie Vigneau)
Finance Committee members: Chairman Michael O’Connor, Donald Gauthier, Albert Kupcinskas; John Bartosiewicz
Finance Director Brian Turbitt; Donna Boynton, Worcester Telegram; Tom Reilly, Millbury-Sutton Chronicle; Edd Cote; Brian Ashmankas, Kevin Plante; Allison Uccello; Jennifer Nietupski; and concerned citizens.
Chairman Plante opened the meeting at 7:00 p.m. and noted that the boards need to work together; as they always have in the past they try to work together going into Town Meeting and this year its more imperative than in the past.
Finance Committee Chairman Michael O’Connor read a statement from the Finance Committee. They appreciate the opportunity to inform as to its position on the current state of affairs. It is the business of FinCom to analyze and recommend, not negotiate. As of now there is no agreed balanced budget for next year between the school department and the municipal services department. FinCom performed an analysis of the projected deficit after submission of the initial budgets, and a level services budget calls for the school to spend 63.78% and the municipal departments side 36.22% of Millbury’s property tax dollars. This spending pattern has remained unchanged for a number of years. There is a projected deficit of $823,668 which would require level service budget reductions of $525,335 from the
school department and $298,333 from the municipal departments. Neither party submitted an override request to spend beyond the levy limit even though both were aware there would be a deficit. The Town Manager has reduced his level services budget 36.22% of the deficit; the school committee has not provided FinCom with any spending reductions. The Town Manager offered to accept 40% of the projected deficit in his budget presentation on March 3rd. FinCom believes that tonight’s meeting is about $82,000.00; it is an argument of less than ¼ of 1% of projected budget. If a balanced budget agreement is not reached tonight FinCom will present a budget to Town Meeting that will include a reduction of $525,335 in the Millbury schools budget.
School Committee Chairman Jane Brady Pojani stated that this time of year we always come together - there is never enough money for both sides of government. They (School Committee) share the same concerns that some of the parents have over the tiers and over the proposed cuts; some of them do not agree with some of the tiers the Superintendent came up with. They realize that cuts have to be made from this budget, but she is not going to get into whom or what services are more important.
School Committee member Tom Clawson said they are looking at 8.7 positions (Superintendent Hitchcock corrected this saying 11 positions total), and looking for how many positions they can save by making cuts in other areas. They have a list of cuts totaling $220,000, which include School Committee conferences and dues ($5000), general supplies ($19,000), principal supplies, programs with other schools and general maintenance accounts.
Board of Selectman Chairman Plante noted that the Selectmen have not left here in 20 years; the Board cut conference attendance years ago.
Town Manager Bob Spain spoke to clear up some misinformation. The Superintendent was made aware of the deficit as early as February 18th via an email sent by the Town Manager; the second issue is that budget cuts will not put us near net school spending. The third issue is free cash; to use an analogy it is like a tax refund. Every year the town has raised more tax dollars than what was needed in that fiscal year. He has stated on numerous occasions that is a bad way to do business. The perception that free cash is somehow the town side is hiding money has been out there and that is a false rumor. Another false rumor is that the town side is not cutting people. Yes, we are cutting people. Every dollar in the next round, dollar for dollar, is going to come against people on this
(town) side. Also, the last issue is the belief that there is a “town side”- there is no “town side” we are all the town of Millbury. It hurts the cause and is not helpful to what we are trying to do.
Senator Moore went to the School Committee meeting and discussed the municipal relief package.
It deals with what is called the overlay account – the amount of our tax dollars that we reserve for certain abatements that are granted by the Board of Assessors or by the Appellate Tax Board. When somebody appeals the valuation of their property, that money, if the abatement is granted, comes out of the overlay account. The Municipal Relief Act would exempt what monies we put in the overlay account. For this year the current proposed amount is $325,000. Whatever money we put into that overlay comes out of the tax dollars that we raise. The bill would exempt that money from Proposition 2 ½ and would give us the ability to raise an additional $325,000. Mr. O’Connor shared a few ideas with the Manager, and Mr. Spain began thinking of ways to try to resolve some of the issues.
Even if we come to some agreement tonight we are still going to be cutting a significant number of people. The $82,000 that Mr. O’Connor mentioned is the difference between the 2 numbers, the 50/50 split vs. the 60/40 split; $494,201 (60% of the total deficit) and ~$411,000 (50% of deficit) is $82,367.00.
The problem the Manager and the Board of Selectmen have is that the municipal side is responsible for everything other than the school and it takes people and resources to do that. In the school budget approximately 75 cents of every dollar is spent on personnel; it is not that high on the municipal side. The town side pays for liability insurance and retirement for the entire town including the school. His goal is to try and find a way to vote a budget that everyone can live with without getting into a Civil War. He’s seen that before; hopefully we here in Millbury will rise above that. Mr. Spain has a proposal that will get us to the 50/50 split with a 60/40 split going forward.
Chairman Plante wants the people to understand that the free cash number is not derived at by the Selectmen. The Department of Revenue certifies it and sends the number. It is all done by the DOR and has nothing to do with the internal workings at Town Hall or at the school.
Mr. Spain presented a spreadsheet with the current analysis of the overlay account (see attachment). The first column is the original amount since 2004 to 2010, year over year figures put into the overlay. This year it’s $325,000; it won’t be an even amount. Every year we set an even, exact tax rate amount; it is to the nearest penny. In order for that to happen the fraction of the penny that it comes to is taken care of in the overlay. In 2010 we put in $294,023.71; in the budget it is $300,000. We don’t know the amount until the day we’re putting in the recap sheet. Currently in second column there are negative numbers – the year to year amount of money that is up to this date approved by Board of Assessors in abatements; that is money that will reduce the overlay.
It is amounts we have spent. The third column is what is remaining. The fourth column is the problem; our Board of Assessors has denied an abatement and the people have appealed it to the Appellate Tax Board. In fiscal year 2010 there is a potential deficit of $88,000. Mr. Spain’s proposal is based on the bill that Senator Moore is confident will pass – if it does this is moot as there is $325,000 more available. If the bill doesn’t pass, take a risk and put $82,367 less into the overlay account, which would leave ~$244,000 in the account and based on the negative balance would put $155,000 into the overlay this year. That wouldn’t be enough, however Mr. Spain is willing to do this because he believes that the Senator is probably right and the bill will pass. If it does pass, this point is moot. If the bill does pass the 60/40 is a correct split; split $325,000 60/40 (between school and municipal).
If Town Meeting comes after our ability to affect the tax rate then the $82,000 would go against the school’s 60% share; if it doesn’t pass the school gets the entire $82,000; we will be taking a risk. Mr. Spain believes, historically, not all that money will be granted as abatements; some of that money will come back. The bottom line is that both boards would be taking a risk (what the Town Manager thinks is an acceptable risk). He stated that he would not propose this in different times.
M. Pojani asked how much the overlay will cost the tax payers. Mr. Spain said it is currently figured into the regular budget; it would cost about 7 cents on the tax rate per $100,000. She wants the taxpayers to understand that there are a couple of issues in front of us at town meeting, this one and the meals tax and she hopes the School Dept will share in that profit as well. Mr. Spain said if the bill passes as the Senator described it - it is in effect a defacto 2 ½ override. If it does pass everybody’s tax bill is going to be higher.
Ms. Pojani asked about the Fire Department warrant articles; she wants to make sure they are not part of the budget. Chairman Plante clarified that those articles are separate from the budget; we are not buying fire trucks and laying off teachers; they will be a debt exclusion if passed and has nothing to do with the budget itself. Mr. Spain added that whether you pass the article or not it will not affect the budget at all, and yes, the trucks will fit in the fire station; he urged people to support the increase in the meals and rooms tax; if not would have a further town-wide hole of $155,000 hole on top of everything we talked about tonight.
School Committee Bill Borowski thanked the Town Manager and the Finance Director for coming up with some innovative solutions. However, he does not believe in a 60/40 split and believes in a 50/50 split. He is under no illusions that anyone is hiding money. He wants to take a short term hit on municipal services.
Superintendent Susan Hitchcock thanked the Board for the opportunity to speak, and to speak to Mr. O’Connor’s comment, the administration team has been working on the budget since the beginning of March and are trying to have the least impact on the students. With further reductions it is up to tier 6. Mr. Spain asked if there are still no raises in the budget; the Superintendent said that is correct. Mr. Spain asked for an explanation of the increase in the salary line for the Principal at Shaw; the Superintendent said that the Principal earned more money coming in this year than the person who left had earned. Mr. Spain asked when the psychologist at Elmwood came on board; the Superintendent said the new psychologist was a replacement for a position they lost through retirement and a new one started
this year.
The Superintendent wanted to dispel a rumor that there are more FTEs (Full time employees) in the budget; it looks like the school is adding positions. It was made aware last year that they needed to add a Classroom Imagine class at the Shaw school, which needs a teacher and a nurse. In addition it was understood from last year that they needed an additional preschool; those 3 positions were not added to the budget. It is in the federal stimulus money, which will not be available beyond the 2011-2012 school year.
Selectman King asked if someone could explain what the school mandates are, where are we as far as funding them, and how much over are we. The Superintendent said she doesn’t have enough time to give all the mandates from the state, but gave an overview of the major categories. Mr. Bedard is compiling a list of all the state mandates – there are over 100. The school is meeting its mandates with regards to Special Ed (SPED).
Chairman Plante concluded the meeting by stating that we have to keep going forward and work together, and strongly suggests the 2 chairman speak, make things simple and work together. At Town Meeting a vote to increase something will take away from something else - there are ramifications all over the place.
ADJOURNMENT
Motion made by Selectman Coggans, seconded by Selectman Schold to adjourn the meeting at 8:00 p.m.
Motion carried unanimously.
Respectfully submitted,
Joyce Ostrowski, Secretary
Board of Selectmen
E. Bernard Plante
Joseph F Coggans, Jr
Kenneth I Schold
Francis B King
Brian W Stowell
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