Minutes of the Special Joint Meeting of the Legislative Council
With the Board of Selectman, Board of Education and Board of Finance
Held in the Auditorium at the Newtown High School,
12 Berkshire Road in Sandy Hook, Connecticut
Wednesday, April 29, 2010
Chairman Jeffrey Capeci called the meeting to order at 7:13 pm.
PRESENT: George Ferguson III, John Aurelia Sr., Chris LaRocque, Richard Woycik, Benjamin Spragg, James Belden, Gary Davis, Daniel Amaral, Jan Andras, Kevin Fitzgerald, Mary Ann Jacob and Chairman Jeffrey Capeci
ABSENT: Richard Woycik
ALSO PRESENT: First Selectman Patricia Llodra and Selectmen William Rodgers and William Furrier; Superintendent of Schools Janet Robinson and Board of Education members – Christopher Lagana, Kathryn Fetchick, Richard Gaines, Debbie Martha Leidlein, and Chairman Lillian Bittman; Board of Finance members James Gaston, Joseph Kearney, Harrison Waterbury, Michael Portnoy and Chairman John Kortze, three members of the press and over 145 members of the public.
VOTER PARTICIPATION:
Gael Lynch, 72 Mile Hill Road South, a resident for 25 years, told the council it was tough to pay the bills in this economy but she was willing to pay extra to have a good school system. She noted that officials are faced with making a blind choice after the budget failed not knowing the real reason why it failed. Ms. Lynch indicated that most people who favored the board of education voted yes out of fear that if they voted no more money would be cut from the budget. She reminded the Council that the voters elected them with the belief they would be doing the right thing.
Joan Piscitelli, 5 Butternut Road, charged the Legislative Council to put the budget back to the public as it is because the Council was right and the voters who voted it down were wrong.
Mark Muckuak, 3 Nelson Road, informed the Council that he moved back to Newtown in 2001 primarily because of the school system. He noted that by not having a question on the ballot they missed the opportunity to determine what the voters want. Mr. Muckuak told the Council he will vote “No”, if the school budget is not raised. He believes that that the voters perception is that the Board of Education did its job and he believes the Board of Finance simply pulled a number out of the air.
Charles Hepp, 4 Winter Ridge Road, told the council that the amount of money Newtown is saving in a tax increase by cutting $2.5 million from the school budget is “nickels and dimes” per person in Town
Priscilla Jones, 5 Meadow Road, stated that she has lived in Town for 20 years and works in Westport as a teacher. She said she voted no because she is not going to deny the children what is their right – to have a good education. Mrs. Jones noted that the Board of Education does not spend excessively, but spends in wise ways and hires good people. She added that the teachers pay and compensation in the district isn’t excessive, bit said they stay because it’s a good school system. Mrs. Jones concluded that the roads can be fixed at a later time but her son’s and daughter’s school years can’t be.
Jerry Nolan, 16 Honey Lane, said this was the worst recession since the Great Depression and told the Council that there are a lot of elderly people in Town that deserve a break. He suggested that the Town should put off raising taxes until the economy is better.
Donna Monteleone Randall, 4 Erin Lane, Sandy Hook, told the Council that people moved back to Newtown because it has a great school system. She noted that cutting the school budget is a sin against the people and children of Newtown. She also said the children’s education and preparation for the SATs cannot be repeated. She concluded that it was sad that the Board of Education’s budget was not approved as recommended.
Jennifer Lynch, 21 Butternut Ridge, told the Council that everyone vote against the budget. She said she wants a budget for the kids and noted she was curious if everyone who voted “No” was as confused as she was about the budget that was sent to referendum.
Bob Merola, 22 Ashford Lane, informed those present that he goes to a lot of meetings and has spoken many times. He said that the things that have gone on really disturbed him and he noted that the $2.5 million cut from the Board of Education budget is not a cut there is an increase. He said researched the Board of education budgets since 1998/99 when it was $32 million to its increase to $60 million two years ago. Mr. Merola emphasized that he is pro-education but with current economy decreases should be kept to a minimum and added that the Board of Education budget is actually above what it was.
Karen Pierce, 10 Chestnut Hill Road, said she loves numbers and loves debates, but question why the Council didn’t put back $700,000 into the budget.
Keith Alexander, 8 Fawnwood Road, reminded the Council he sent a letter to them and noted that they all said they would be interested in what the public wants, but that kind of information can’t be ascertained in a yes or no vote. Mr. Alexander suggested that the council start at the top and put the $2.5 million back into the budget and if the budget is voted down take more out to find out what the voters are comfortable with.
Carla Kron, 4 Clapboard Ridge Road, told the Council she looked at what she values in an elected official and said she values individualism such as characterized by Mr. Amaral. She said she values people who will try to work with others. She said she does not agree in increasing total budget but favors putting more money back into education side. Mrs. Kron said she believes money can be moved from the Town budget to the Board of Education.
Po Murray, 38 Charter Ridge Road, defended the Board of Education’s original budget noting that the budget increase was due to the huge increase in enrollment. She noted that the school isn’t prepared to meet the needs of that increase in enrollment. She concluded by stating that unless the Council increases the education budget it will be difficult to have a successful referendum.
Bob Sabin, 9 Knollwood Drive, said he is very concerned and will vote “No” if money isn’t put back into the school budget. He asked that the Council add part of the money back into the Board of Education budget.
Keith Jacobs, 93 Poverty Hollow Road, told the Council that the problem starts before the budget and before the elections it starts with the committees and boards. He believes voters want change but that they need to have choices at election. Mr. Jacobs concluded that if voters put the same officials into place every year, the officials will do the same thing again and again.
Discussion with Board of Selectman, Board of Education and Board of Finance Concerning 2010 Town of Newtown Budget -
Since Finance Director Bob Tait could not be present due to the death of his father, Mrs. Llodra indicated she would share some of their conversation. She noted that the Town budget was as “actual” as she could make it and said she had found some additional areas of savings totaling $503,000:
- $125,000 from the insurance A.I in savings from what was budgeted
- $60,000 from reduced Police Salary Account and $18,000 in health benefit line (medical)
- $100,000 can be moved from contingency because Town can manage with less
- $200,000 from modification of Debt Service
Mrs. Llodra referred to Mr. Spragg to best describe the modification of Debt Service.
According to Mr. Spragg, the Town financed the “portables” (portable classrooms) at the High School for $1 million. Next year they will be selling the “portables”. He noted that the discussion was to use $200,000 of the proceeds or Debt Service. Mr. Spragg added that proper use of such money is to reduce debt that has occurred.
Mr. Kortze stated that when they presented the budget to the Legislative Council they suggested the Council look at any other revenues generated.
Mr. Rodgers said the boards put their budgets to the Council based on knowledge they had. He added that they are no more skilled at reading “the voter tea leaves” than the Council. Mr. Rodgers said he hopes the school forces learned a lesson in that in action there is reaction. He noted that since there wasn’t a school budget vote the vote failed and surmised that if people had come out in significant numbers that would have sent a message. Mr. Rodgers went on to say that questions on a referendum rob compromise. He added that if budge questions are used the budget fails the first time and suggested that there must be a more efficient way of getting that information.
Mr. Portnoy noted that the Board of Education is doing an enrollment study and that their study may tell the Boards and Council enrollment will be going down. He noted that the Town may have to close a school and suggested that they may need the “portables” for another year. He suggested they rethink selling the portables next year and wait a couple of years.
Mr. Furrier said the town is at a place where community is not happy. He noted that Town officials are going to walk away not knowing anything more than when they started. Mr. Furrier emphasized that the Town officials’ job is to the people not their personal preferences. He concluded adding that people should have a voice on how their tax dollars are allocated.
Mrs. Bittman thanked everyone for coming and for the joint meeting. She said that the four elementary schools don’t have space for the portables. She noted that the Board of Education offered early retirement to teachers and staff as a way to save money, but she noted that any additional cuts will push the Board into a worse scenario.
Mrs. Robinson noted that the board had uncovered an insurance savings of their own. She told the Council the original budget of $2.5 million could actually be reduced by $1.3 million. In addition, Ms. Robinson noted that the experience rate dropped from 7.8% to 2.05% which she indicated was a savings of roughly $400,000.
Mr. Davis did some quick math citing that the original budget request of $2.5 million less the $1.3 million and the $400,000 meant the Board of Education only needed another $800,000 to close the gap.
Mrs. Jacob asked the first selectman how additional cuts could be made to the police department.
Mrs. Llodra noted that one of the officers had been accepted into the State Police and she is proposing that the salary line and benefits for that position be cut. She added that she is prosing this but the position itself might not be cut.
Mr. Kortze reported that he had contacted CCM regarding “Excess Costs” and has fax on impact to municipalities when it was started. He explained that when the Board of Education made their budget they assumed 50% reimbursement while he assumed it would be 75%. He added that its possible even 75% reimbursement is conservative. Responding to a question by Chairman Capeci, Mr. Kortze indicated that a 50% reimbursement is approximately $400,000.
According to Mr. Kortze, this is why the Board of Finance made a motion (after recommending the budget and cuts) to look at all revenues. He noted that the Board of Finance doesn’t have all the data, but said it would be great if they did.
Mrs. Robinson added that the Board of Education won’t know what they are getting as a reimbursement until January 2011.
Mr. Portman said that the portable classrooms should be kept for use at the Elementary School level and that the Town should be flexible regarding when they sell the portables.
Mrs. Robinson indicated that the portables will be used in the Fall Semester and then after that they will be vacated. She told the Council that the Superintendent of the Danbury Schools has been looking at them because their school system is so overcrowded.
Mr. Gaston did some quick math and said that the Board of education had already noted $1.4 million in savings - plus an additional $400,000 in insurance savings - off the original $2.5 million cut, leaving them short $700,000. He added that if the Town gives them $400 they would have $300,000 to work with.
Chairman Capeci suggested everyone take a quick minute break at 8:47 pm at which time members of the Boards of Education, Finance and Selectman, left the auditorium. He reopened the meeting at 8:57 pm.
UNFINISHED BUSINESS:
Discussion and possible action: 2010 Town of Newtown -
Mrs. Llodra explained to the Council that the there 3 time requirements in the Charter regarding the next referendum.
- The Town has 7 days to act on a new referendum after the previous one has failed.
- Once the new budget proposal is made they must file the proposal
- Notice must be made in a major publication five days in advance of the referendum
Mrs. Llodra said that if the new proposal is filed tomorrow (Friday, April 30, 2010) it must be noticed the next Friday (May 7, 2010). She added that the earliest date for referendum would be Wednesday, May 12, 2010; Thursday, May 13, 2010, Friday, May 14, 2010 or Tuesday, May 18, 2010– no sooner than 10 days, no later than 14 days, after the previous referendum has failed. Mrs. Llodra informed the Council that it is the responsibility of the Board of Selectmen to set the date and time of the referendum. She noted that the Board of Selectmen meet Monday, May 3, 2010.
Before the First Selectman left the meeting, Mr. Davis asked her if she believed the $503,000 she offered to reduce from the Town side of the budget was a reasonable amount. Mrs. Llodra responded that “everyone has an impact and we will find a way to meet the challenge.”
The First Selectman left the meeting at 9:07 pm.
Mr. Spragg moved that in the selectmen’s budget the Council make the following reductions: Contingency $100,000, Police Salaries $60,000, Police health plan $18,000, Debt Service $200,000 and Health plan savings $125,000 for a total of $503,000. Mr. Ferguson seconded the motion.
Mr. Spragg said he wants the budget to get passed as quickly as possible.
According to Mr. Spragg, the Town and School health insurance quote was $13,500,000 which is in the current budget. The Town has $3,500,000 and the School Board has $10,000,000. Mr. Spragg indicated, that on April 27, 2010, the health insurance consultant revised the quote with more up to date information and lowered the quote by $500,000 to $13,000,000. He added that the Town’s portion was reduced by $125,000 and the School System portion was reduced by $375,000.
In addition, Mr. Spragg reiterated the other areas of savings Contingency $100,000, Police Salaries $60,000 & Health Insurance $18,000, and Debt Service $200,000.
Mr. Spragg explained the Debt Service savings. He noted that the Town financed the portables that are here at the High School for about $1,000,000. Next fiscal year, he said the Town will be selling the portables. He proposed that the Council use $200,000 of the proceeds for debt service as that would be the proper use of the proceeds from the sale of the portable classrooms to reduce the debt that was incurred.
In summary, Mr. Spragg said there would be a reduction to the Town Budget of $503,000. Health Insurance $125,000 and $18,000; Contingency $100,000; Police Salaries $60,000; and Debt Service $200,000. He added that the School System would have $375,000 restored to their budget by way of the lower Health Insurance Quote and another approximately $50,000 to $60,000 restored from the additional revenue the School Board will receive from the Excess Cost state grant for a total of $435,000 that will be restored to the School Board budget. He concluded by stating that taxes will be reduced by ½% to a 2.44% increase from the current 2.99%.
Mr. Davis believed this was a good start noting that the Council has clearly heard the desire by people for more money being put back into education, however he indicated that the people they haven’t heard from are the ones who are feeling the pinch and don’t want any tax increase. According to Mr. Davis, the actual numbers have come a long way since the reduction was made to the budget. He added that originally the Board of Education was going to be short $2.5 million now they are short approximately $700,000. Mr. Davis recognized the need for a tax reduction but doubted the Town could reduce the budget down to a 1% increase with causing a significant problem to Town services.
Mr. Davis offered an amendment to the motion asking that, with the reduced Town side of the budget that $450,000 be added back into the Board of Education side of the budget.
Mr. Davis believed this would move to those who want more money for education. He said that after this the Council needs to find a way to pay for all its services in Town. Mr. Davis believed the Council could find solution but said “we” would have to start thinking differently. He concluded noting that he had confidence in the Chairman’s leadership.
Mr. Aurelia believed that a small number of people voted no because they felt the budget was too low. He said he has voted on every referendum since 1960, but said he voted no every time he thought taxes were going up to high.
Mrs. Jacob thanked everyone for writing and said that many wanted an advisory question. She said that she knows what people want but said they know what they want because of the vote and thinks this is contradictory. Mrs. Jacob explained that this vote was a very low “No” vote. She said she didn’t think the Council needs to take out the amount of money Mr. Davis suggests but does think they should take out what Mrs. Llodra proposed.
Mr. Fitzgerald said it’s important that the Council recognizes they don’t know why the budget failed the way it did and said it’s important to acknowledge this because the Council can’t use tools such as advisory questions. Mr. Fitzgerald noted that Mr. Rodgers said an advisory question is useless but he considers it very valuable because would enable the Council to decide what to do now. He noted that without an advisory question makes the 2nd round and possibly a 3rd and 4th round useless. Mr. Fitzgerald emphasized that the Council should not be guessing. He noted that with $503,000 available on the Town side it provides the Council with the opportunity to address the issues and he believes in reducing the Town side further because
inequity still exists.
According to Mr. Ferguson, Newtown is struggling with budget problems just like every other state. He question if the $503,000 in the motion was too much with the concept of a need for the portables in the future. Mr. Ferguson emphasized that he does not want to cut the education budget additionally.
Mr. LaRocque conveyed that the Council can’t accurately discern why the vote failed and said he doesn’t feel that increasing the taxes is helping. He said he’s going to support taking some money from the Town side and noted that this type of cut will not increase the burden on tax payers. Mr. LaRocque emphasized the importance of compromise – between the Town and the school system - and noted that there is disagreement on the extent to which it is done.
Mr. Belden said he still felt the same way he did a few weeks ago. He noted that the Council is presenting a budget to the public that’s divided and added that the Council is not doing what they need to be doing to pass the budget. Mr. Belden said the Council does have the ability to swing the vote to a “Yes” but added that the question was does the Council cut money from the Town side and give it to the Board of Education or cut to get a nominal increase in taxes. Mr. Belden said the Council can get a whole lot of yes votes by compromising with the Board of Education in the future, but he doesn’t feel the motion does enough.
To provide his personal input, Chairman Capeci momentarily passed the gavel to the Council’s Vice-Chairman, Mrs. Jacob. According to Mr. Capeci, the Town side agreed to make cuts, but the money from Debt Service bothers him because he thinks the schools might need the portables. He noted that the additional $200,000 of revenue troubles him but it does reduce the increase to 2.6%. However, Mr. Capeci added that if the Council reduces the $200,000 and the portables don’t sell the Council may be significantly impacting town services.
Mr. Capeci moved an amendment to reduce the $200,000 in Debt Service from the original motion. Mr. Ferguson seconded the proposed amendment.
After Chairman Capeci had received his gavel back, Mr. Fitzgerald reminded the Chairman that the First Selectman said there was an impact but she can manage, while the Superintendent of Schools said she can’t deliver with the proposed cuts.
Chairman Capeci replied that he thinks that just like the Town, the school system will be able to manage with cuts.
Mrs. Jacob offered a friendly amendment to the original motion leaving the reduction at $503,000 in and taking the $200, 000 labeled as Debt Service and labeling it as “unassigned.”
After a brief discussion, the amendment proposed by Mr. Capeci failed in a roll call vote 4-7. Mr. Ferguson, Mr. Aurelia, Sr., Mr. LaRocque and Chairman Capeci voted in favor of the amendment. Mrs. Jacob, Mr. Davis, Mr. Mr. Spragg, Mr. Amaral, Mr. Belden, Ms. Andras and Mr. Fitzgerald voted against the proposed amendment.
Mr. Davis moved to amend the original motion to reduce the $503,000 from the Town side and cut an additional $450,000 from the town for a total of $953,000 and proposed transferring $450,000 of that reduction to the Board of Education side. Mr. Fitzgerald seconded the proposed amendment.
According to Mr. Davis, during the Council’s discussion the Capital Improvement side of the budget, money for bridges was transferred to Capital Budget. He noted that as a Council, they voted unanimously to put $450,000 into Capital Improvement plan, but when it came to Operating Budget they didn’t make any adjustment to that. Mr. Davis added that the $450, 000, that was moved from the Capital budget and was not in the operating budget, should be moved to the education budget to help further reduce the $800,000. He said that with this amendment there would be no increase in taxes and answers the voice of public that wants more money for education.
Mrs. Jacob disagreed stating that looking at the Highway Department’s request inputted $2 million to the Capital Road Improvement and $896,000 to bridge repairs. She said it was her understanding that the $896,000 request was reduced to $450,000 and put into Capital Road Improvement Plan and then the Capital Improvement Plan was reduced from $2 million to $1 million.
Mr. Spragg said he doesn’t support the amendment proposed by Mr. Davis’ and asked the Chairman if it requires a majority 2/3 vote. Chairman Capeci said yes.
After some discussion and disagreement over whether Mr. Davis’ proposed amendment to the motion would reduce the tax increase, the motion failed in a roll call vote 3-8. Mr. Fitzgerald, Mr. Davis and Mr. Belden voted for the amendment. Ms. Andras, Mr. Aurelia, Sr., Mr. Ferguson, Mr. LaRocque, Mrs. Jacob, Mr. Spragg, Mr. Amaral and Chairman Capeci voted against the amendment.
Subsequently, Mr. Fitzgerald moved to amend the original motion and move $250,000 of the $503,000 reductions on the Town side of the budget over to the Board of Education side of the budget. Mr. Davis seconded the amendment.
Mr. Ferguson reminded the Council that when all the cuts made to the Board of Education budget hit home “it’s going to be pretty ugly” and says he wants to minimize that as much as possible. He told the Council that this amendment would reduce taxes, keep increase to close to 3%, and restore funds to the school system for those who support education and those who vote yes because they fear further cuts will see it’s not that bad.
Mr. Spragg said he was not going to support the amendment and noted that handing $250,000 over to the school system will affect the Mill Rate. He reminded the Council that they are missing the portion of “No” votes who want lower taxes.
Mr. Fitzgerald said that there is still a big inequity issue. He reminded the Council that the Superintendent of Schools says she will be struggling while the First Selectman says she can work with it.
Mr. Ferguson proposed a friendly amendment reducing Mr. Fitzgerald’s amendment to reduce the $250,000 he proposed to $100,000 and add it to the school budget so it wouldn’t affect the Mill Rate. Mr. Davis seconded the friendly amendment.
Mr. Ferguson suggested that this would be an olive branch that keeps everyone talking and would still reduce the tax rate.
Mr. Spragg said he would not support the motion and said they were already giving insurance cost.
Mr. Davis said that based on the friendly amendment of $100, the $403,000 would still reduce the tax burden.
Mr. Fitzgerald’s amendment together with Mr. Ferguson’s friendly amendment failed to pass in a roll call vote 6-5. The Chairman explained that the vote failed because it needed a 2/3 super majority vote to pass since it was affecting a budget line item. Mr. Ferguson, Mr. Aurelia, Sr., Mr. Fitzgerald, Mr. LaRocque, Mr. Davis and Mr. Belden voted in favor of the amendment. Mr. Amaral, Mr. Spragg, Mrs. Jacob, Ms. Andras and Chairman Capeci voted against the amendment.
Following the vote on the amendment, the main motion passed unanimously in a roll call vote.
Ms. Andras made the motion to recommend the referendum be held on Tuesday, May 18, 2010. Mr. Spragg seconded the motion. After a brief discussion, the motion was withdrawn.
Mr. Spragg moved that the Finance Director be authorized to make any mathematical corrections that may be required a summarily report back to the Legislative Council. Mr. Fitzgerald seconded and the motion was unanimously carried.
VOTER PARTICIPATION:
Mrs. Gavel, 14 Willow Drive, told the commission that it is known the less the education the higher the unemployment rate. She added that the Newtown students will be competing for jobs with students from surrounding towns. Mrs. Gavel said that these are unprecedented financial times. She noted that the adults 30 years ago believed in her and her education and we should do the same. Mrs. Gavel said she will always have her education and that can’t be taken away by a recession.
Sue Zimmerman, 20 Pine Tree Road, told the Council she is very frustrated and asked, “When do we get a voice that is heard?” She said that the kids won’t get an education and added that the Council says it’s ok to have the kids in class sizes of 30. She concluded by telling the Council that she will tell her friends to vote “No”.
Bob Sabin, 9 Knollwood Drive, said he wrote emails to District I individuals on the Council. He said he got 2 responses saying “Thank you”, 2 that didn’t respond and 1 that’s going public. Mr. Sabin said he is very frustrated and very disappointed that the Council isn’t listening to them.
Chris Smith, 22 Wills Road, said he is concerned the Newtown is going to get a “No”
vote again.
ADJOURNMENT:
Mr. LaRocque moved to adjourn the meeting at 10:55 pm. Mr. Davis seconded and the motion was unanimously approved.
Ted Swigart, Clerk
* Minutes are not finalized until approved at the next regularly scheduled meeting.
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