TOWN OF SOUTH WINDSOR
MINUTES
TOWN COUNCIL/BOARD OF EDUCATION JOINT BUDGET WORK SESSION
ROOM ALT. 6 DATE: MARCH 28, 2005
TIMOTHY EDWARDS MIDDLE SCHOOL TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Havens called the meeting to order at 7:00 p.m.
2. Roll Call
Town Council
Members Present: Mayor Edward Havens
Deputy Mayor John Pelkey
Councillor William Aman
Councillor Thomas Delnicki
Councilor Deborah Fine
Councillor Judith Paquin
Councillor Elizabeth Pendleton
Councillor Matthew Streeter
Councillor Roseann Williams
Also Present: Town Manager Matthew B. Galligan
Absent: Town Attorney Barry Guliano
Board of Education
Members Present: Chairman Robert E. O’Connor
Kathleen Soucy Daugherty
Anthony J. Fornuto II
David S. Joy
James Katz
Janice A. Snyder
Keith Yagaloff
2. Roll Call (Continued)
Also Present: Superintendent of Schools Dr. Joseph Wood
Asst. Superintendent Dale Vannie
Business Manager Donald Neel
Absent: Board Member Victoria S. McCulloch
Board Member Thomas Reale
3. Public Participation - None
4. Items for Discussion
A. Board of Education and General Government Proposed Budgets for Fiscal Year 2005/2006
Mayor Havens explained that the distributed Memorandum regarding the Target 2005/2006 Budget and Tax Rate from Town Manager Matthew B. Galligan was at the request of the Mayor.
Mayor Havens recommended a target figure of a 2.5% increase in the Town Budget. He made it clear that the budget was not being set during this meeting, but this is a figure that they are going to increase or decrease after they hear from the public. Mayor Havens gave a target figure this year because he wanted the public to have something to work with.
At the request of Mayor Havens, Town Manager Galligan gave an overview of the Memorandum and the attached worksheets. He explained the Summary of the Prior Five Fiscal Years worksheet (Exhibit A), which included information on the Proposed, Council Approved, Reduction to Requested Amount, Requested Increase in dollars, Requested Increase percentage, Actual Increase in dollars, Actual Increase percentage, and the effect on taxes.
Town Manager Galligan then proceeded to explain the next worksheet, Board of Education Budget Projections (Exhibit B). This projection is strictly for the Board of Education as to the budget increases at certain percentages, the Board of Education budget in dollars, the amount to be reduced, and the effect on taxes. He also discussed the effect of a 6.88% budget increase. Town Manager Galligan also spoke regarding the tax increase on the last fiscal year, and the Board of Education and Town budgets increases for the preceding year.
The third worksheet that Town Manager Galligan explained was the Target 2005/2006 Budget And Tax Rate (Exhibit C). He stated that the Mayor expressed
4. A. (continued)
to him that this was strictly a target and that it is a number to be put out there for the public to be aware of it.
Town Manager Galligan then gave an overview of the last worksheet, Board of Education Budget Projections 2005/2006 Fiscal Year (Exhibit D). This projection was done using the same numbers. This is a layout of the different scenarios as to what the increases and reductions would be and what the impact on the taxes is. This is preliminary.
Mayor Havens asked Town Manager Galligan to prepare this and he felt that when he prepares something for any Member of Council that all Members of Council should be aware of it.
Town Manager Galligan said that this is something that they hope will generate discussion.
Councillor Matthew Streeter presented his plan. To try and open the general discussion, he came up with a 2% tax increase, which would be a 5-¼% increase on both the Town Government and the Board of Education budget. He stated that they have been following the budget since it has deliberated between the Board of Education and with what is happening with the Town. They were aware of where they were going to come in.
As he mentioned last week, the Council has talked about the impact of economic development between the abatements and Evergreen Walk. The Council has always thought that when the time came for Evergreen Walk and some of these economic developments to take place, that they should not spend all of the money but look at reducing the taxes or at least relieving the burden of the tax paying businesses and residences in Town. So, he has encouraged, by the direction the Mayor has taken with the 2-½% target, that hopefully they can continue to work towards their number of 2% or even lower, but he doesn’t want to get ahead of themselves. This is just for discussions sake that 2% is attainable. This would still be a larger increase in dollars and percentage for the Board of Education than last year,
which is also one of the largest increases in the history of the Town.
He presented the 2% tax increase, which would be on the Board of Educations operating budget of $51,800,000, which is a 5.23% increase and a General Government operating budget of $21,700,000. This would bring the total Town budget to $79,852,480.00, which would be a total increase of 5.21% but a net tax increase of 1.99%.
4. A. (continued)
Mayor Havens opened the meeting up for any discussions, questions, or proposals of their own.
Deputy Mayor John Pelkey said that last week he said it was too early to speculate on the bottom line until there was some dialog. He said that he is glad that the Mayor has underscored the target area, and he believes that they really need some public input and that his final decision does not take place until he hears that public input.
Deputy Mayor Pelkey said that after talking to people that were in the audience last week, he thinks that the concept of throwing numbers out to the public like 8 ¼ or 10 ¼, brings the wrong dialogue to the table in that, realistically, the number will be in the 6 range for the Board and an overall target for the Town. He hopes that more people attend future budget meetings and provide their input.
Councillor Thomas Delnicki asked Town Manager Galligan if the budget that he presented to the Council last week was calling for $1M in fund balance. Town Manager Galligan said that that was correct.
Councillor Delnicki asked if historically they have been looking at $1.3M. Town Manager Galligan said that it went from $800,000.00, to $900,000.00, to $1.1M, and the last few years at $1.3M.
Councillor Delnicki said that when Councillor Streeter prepared the budget information, they had factored the $1M the Town Manager had talked about. He said that by a realistic standpoint, regardless of which budget proposal is looked at, $1.3M is what should be figured in, and that he would hesitate to go any higher than that.
Town Manager Galligan said that using the $1.3M is strictly up to the Council. He said that he brought it down because they haven’t used $1.3M in a while. Councillor Delnicki said that it makes sense to return to the $1.3M because of the fact that they received $522,000.00 after they closed the budget process out for this year. He said that they attempted to put it back in and give the taxpayers some relief, but that didn’t happen, so he thinks that the $1.3M would be the more realistic number to be looking at. Town Manager Galligan responded by saying that the Council has to remember that $1.3M was already appropriated from an accounting standpoint.
A Councillor said that they spoke with Representative Aman and that it looks like the Town is going to see another $300,000.00 in additional funds this year, but that is preliminary. Town Manager Galligan was not aware of that.
4. A. (continued)
Dr. Joseph Wood asked the Council to go back to the original proposal that they presented for the 8.62% increase. He wondered if the Council could tell them and the public what their rational is for having to cut down the budget immediately. Mayor Havens said that he thinks that the public this year expects a lot more from the Town in what they get in their tax load. He personally thinks that the public deserves some of the revenue that the Town has come about in the last year. He hears that they want a tax break, and that this may be the year that they can do that. He said that he wishes he could fund the Board’s budget as it has been proposed, but he represents the Council and the Council represents 25,000 people. Mayor Havens said that he thinks that the public will be happy with
a figure between 2 and 3% as Councillor Streeter proposed.
Mayor Havens said that it is impossible to keep everybody happy, so they have to come to some kind of a consensus that sounds reasonable.
Councillor Delnicki said that they did a fiscal analysis historically from the 1995/96 budget to present. If it is looked at historically, the Board of Education has received on average, about 5% increases over that period of time. Both proposals on the table exceed that 5%. Among the community, many people are struggling and they can’t take that kind of a tax increase. He said that the Council has to hold the line and business has to be done differently. Councillor Delnicki said that a 2% increase is a significant amount of money.
Ms. Kathleen Soucy Daugherty said that with all of the information in front of them, she is wondering as a Board Member and also a member of the public, even though there is an increase in the budget, there is a reduction in the proposed budget on the Board’s side and the Town’s side and what does that reduction mean to the public.
Ms. Daugherty said that there should be an understanding between the Board and the Council that if they did work towards this reduction that there would be an honest list, one that the Board would truly believe in, so that once the numbers come about, it would be a true list. She then said that the Board and the Council should regroup and listen to what the impact is so that an intelligent decision can be made. She said that she doesn’t know one person there that could say that a 2, 2 ½, or 3% is acceptable, when they don’t know what that means to the public. She is in favor of hearing what everybody has to say, getting an idea of where they stand, and then regroup before a public hearing.
Chairman Robert O’Connor thanked Councillor Streeter and the Mayor for coming up with target numbers to work with. He said that this is something that the public wants to hear. He invited the Council to give opinions on what they would like to
4. A. (continued)
see happen. For instance, he said that there is a $250,000 line item for computers. A lot of the increase that is built into this budget is for support for IT. What he said he is looking to hear from the Council is what kind of future do they have for the school system and what value do they see as education for the Town.
Councillor Deborah Fine asked if they were operating right now at a deficit. The Board said that after the reimbursement from the State for “Special Education”, they are still at a deficit. Councillor Fine said that maybe if the Council had a better understanding of where, how, and when the money is being spent; it might give the Council a different perspective. She then asked for a copy of their line item budget. Dr. Joseph Wood said that he would send a copy over to Mr. Galligan and he can decide how much he wants to produce.
Councillor Fine also asked about the reimbursement. Dr. Wood confirmed what Chairman O’Connor had said – the $28,000 projected deficit assumes the reimbursement for “Special Education;” and it assumes it at a certain level. Mr. Don Neel said that it is originally assumed at 80%. He said that the last information he had from the state, based on initial filings from Districts, they anticipate being at 73-½%. There was further discussion regarding education reimbursement.
Councillor Fine asked if there were any more anticipated reimbursements that are not reflected on the Revenue side of this Budget. Dr. Wood said that there were not. That the financial projections or the budget projections they provided to the Mayor, Town Council, and to the Town Manager on a quarterly basis assumes their best estimate at that point of their expenditures, offset by whatever, and all reimbursements they could anticipate through any kind of revenues.
Councillor Cary Prague said that the Council has to put on two hats. One a citizen hat and the other a financial hat. He pointed out that it is very important for the public to attend all of their meetings and talk to the Council about whether or not they are for or against an increase.
Councillor Prague explained that he had to look at this very dispassionately and force himself from being a citizen for a moment. He has been watching the meetings for several years. The one thing that bothered him this year was that on the box was several increases; one was a foundation budget; and the other was a budget to put back what was taken away. In all of the six weeks that the Board of Education has discussed the budget, the focus was only on what would be cut out of the budget, and that the whole school’s needs were never really discussed. He discussed this further with a pie chart that he displayed.
4. A. (continued)
Councillor Prague complimented Dr. Wood by stating that he is one of the finest Superintendents in the State and that South Windsor has one of the best school systems in Connecticut. Councillor Prague agreed with Councillor Delnicki when he said earlier that the Town has averaged about a little more than a 5% increase in the Board of Education budget over the last 10 years. That increase keeps becoming a larger number. Ten years ago a 5% increase was $2M, today it is $4.5M.
Councillor Prague said that he apologizes and he is not trying to attack any credibility. He feels that a 5% increase is sufficient, based on past years. He said that the fact that the Town received an additional $1.9M for Evergreen Walk, it does not give them the authority to go out and spend it; it gives them the opportunity to give back to the citizens who have paid higher taxes for years.
Mr. Keith Yagaloff asked how the ECS Funding and the reimbursements for “Special Education” flow into the budget? Does it go back to the school or to the Town? Mr. Galligan answered that as far as “Special Education;” that does not flow through the Town’s budget, it is handled strictly by the school. What flow’s through the Town’s budget is the ECS Funding and the school transportation.
Mr. Yagaloff said that part of their budget this year, along the line item of “Special Education,” was done differently than in the past.
Mr. Yagaloff wanted to make a point about the 2 or 3% range. The minority is proposing 2%. He said that a 3% number does not shock him, but the 2% number does. The 2% number is the $1.5M reduction from where they are now. He said that 3% is being fiscally conservative, but 2-½% is extremely fiscally conservative and the 2% proposal is taking it too far. He hopes that the numbers creep up rather than go down. He said that he appreciates the Council’s efforts for trying to balance the needs of the community.
Mr. James Katz suggested to the Town Council that all of the citizens that flow through them with their comments, he asked that the Council make sure that they also flow through the Board. He also asked the Council what the Board should do to cut over $1M from a budget that they feel is strapped right now. He said that he honestly doesn’t know what he is going to say to the citizens. He also represents 25,000 citizens so to speak and especially 5,000 that don’t go into the voting booth.
For this day’s meeting to be meaningful to Mr. Katz, he wants to know where the money is going to be taken from; is it “Special Education,” IT, or reducing teachers.
4. A. (continued)
He said that he needs help from the Council and all of the citizens that flow through the Council.
Councillor Roseann Williams said that they appreciate the dilemma that the Board is in. Over the last 10 or 12 years she has heard all of the arguments, that they are not new. What is new is the tremendous Capital Projects Committee; Evergreen Walk, which is bringing in a lot of extra money for taxes; and Shared Services, which is saving money. Because of all of those things, money is being saved. That money should be put back to the taxpayers, not increase the taxes.
Councillor Williams appreciates the Board’s dilemma as to what they are going to do and what services should be cut. She can’t answer that. They are the experts in their Board’s budget. Councillor Williams said that the Council will give them feedback once they come to the Council, but they can’t prioritize for them.
Mr. David Joy said that regarding Councillor William’s point, there are things new and different this year. One of them being a $4.2M increase; with the proportion of personnel cost expense increase to program cost expense increase being quite different than in the past years. This year 62% of their requested increase is due to personnel and 38% is due to programs.
Mr. Joy asked to be corrected if he was inaccurate, but to his recollection, this is an extraordinary year in terms of the rate of increase in “Special Education” and the fact that the increase comes from the program side of the budget, not the staff side.
Mr. Joy said that the Board can find a way to make it work at whatever increase is provided by the Council, but he is starting to see cracking and crumbling in the system, and there will be more next year if the budget has to be reduced. Because there are certain things that don’t have a lot of flexibility like; “Special Education,” contractual increases, and energy costs, it will be the staffing levels of the core programs that will be affected.
Mr. Joy thanked the Mayor for the commentary tonight, but if these targets are anywhere near reality from the Council’s point of view, the Board’s work is just beginning.
Councillor Judith Paquin asked Dr. Wood if he had an average figure for salaries for teachers. A Member of the Board said that the average salary for a teacher is about $60,000 and a little more than that for “Special Education” teachers, but that salary includes about $14,000 for benefits.
4. A. (continued)
Dr. Wood discussed various areas that have had to be cut back over the past few years because of budget reductions. He said that his point is that just because the buses show up every September and the kids get on it and go to school, it doesn’t mean that things haven’t changed when these kinds of reduction are taken. He said that he thinks it is important for the Town Council and the people to debate so that everyone can make an informed decision. There is an impact when some of the requests can’t be funded.
Dr. Wood distributed and discussed a 2005-06 Budget Summary (Exhibit E). He pointed out that the single biggest increase is for salaries and benefits. The next biggest increase is for “Special Education” programs. He also pointed out that by using Shared Services for health insurance, there is a savings of $1.6M. Dr. Wood stated that the $4.2M is absolutely explainable.
Councillor Elizabeth Pendleton thanked Dr. Wood for the print out. Councillor Pendleton asked what the definition of programs was when it was said that “Special Education” was driven not by staff but by programs. Dr. Wood said that the majority of the increase is for programs, which is the tuition for students who have been found to need programs that don’t fall within the system and therefore they have to find programs that meet their educational needs under the law. Dr. Wood also said that some of that increase is due to deficit spending.
Councillor Pendleton also asked if it would be more affordable for the Town if the Town had its own “Special Education” school within the community. Dr. Wood said that the Town does within the school system. He also said that there are some children that require highly specialized environments that the Town just can’t provide on a one on one basis that those children need. The Board is always looking for ways to bring children back into the schools system. At this time, he said that the Town wouldn’t have a sufficient number of students with the same program needs that they would be able to accommodate as one group of kids, but it is looked at every year.
Councillor Pendleton said that she is concerned with the State reimbursement. State and Federal law mandate Towns to do particular things by law, but they are lacking the reimbursement. She said that she was looking at the Town having its own “Special Education” school as an option, because the Town still has to supply for its own, even if the State and Federal governments aren’t giving reimbursements. Dr. Wood understands that the more money that flows to “Special Education” is that much less that goes to the other percent of students that aren’t receiving “Special Education” services.
4. A. (continued)
Councillor Streeter asked if it was possible to get a list of the off budget revenues. One of the Board Members said that it was on page 25 of the Summary Budget book.
Mr. Fornuto talked about looking at dollars and cents and looking at value. He said that he doesn’t agree with every cent that is in the budget because sometimes value has to be looked at rather than dollars and cents.
Deputy Mayor Pelkey asked where the “Special Education” students go when they are sent out of South Windsor for the help that they need. Dr. Wood explained that the law requires them to evaluate students with “Special Educational” needs and each year they have to progress with their individual education plan. He explained that as the child gets older their needs may become more involved, and then they have to look at if there are programs outside of the school system that can meet that child’s needs. This is a very individually driven, specific needs based, programmatic review that they do. Dr. Wood said that the placements vary.
Deputy Mayor Pelkey asked if children from other towns have come to South Windsor for “Special Education” programs. Dr. Wood said that they have done that in the past.
Ms. Janice Snyder said that the Board of Education needs to be education advocates and feels that 2% is extremely low and will cause an impact on the school system and the Town, but 3 or 3-½% is more reasonable. She said that most people that move to South Windsor move here for the school system and quality of life that the Town gives.
Councillor Fine asked if POP (Preschool Outreach Program) is part of “Special Education”. Dr. Wood confirmed that it is. Dr. Wood gave a brief explanation of the program.
Councillor Fine asked if there have been any serious thoughts or discussions regarding the idea of the sidewalks within the mile range of the schools to eliminate that many school busses. She asked if this was a viable solution to the overcrowding on the busses. Dr. Wood said that there has been serious consideration done, there might be some savings, but not significant. The major driver of the expense of the busses is the amount of students at the middle school.
Dr. Wood then explained why the current sidewalks have, at this time, been determined unsafe for students to be required to use to walk to school.
Councillor Delnicki spoke about an article that was published in the Journal Inquirer regarding school administrators spending about $120,000 on advertising
4. A. (continued)
for new hires this year, which is about $40,000 more than what was budgeted for. He said that he had received 5 or 6 calls from residents regarding this article. Dr. Wood explained that advertising is expensive, that they had 2 vacancies that they didn’t plan on having to fill, and that some advertisements had to be run more than once.
Mr. Yagaloff explained that the budget that the Council now has is the Board’s budget, not Dr. Wood’s budget anymore. The Board already went through the budget and made cuts where they thought it would be appropriate. They reduced the budget by about $700,000 or $800,000 from the original budget.
Mayor Havens said that in the past he has sat through some of these Work Sessions where they didn’t have an issue or topic to start a discussion. He said that they did find a topic of discussion very early in the process and now they have to listen to the citizens and see what they want of the Council and Board of Education.
Mayor Havens thanked the Board of Education and said that they truly do a terrific job and they work hard and he compliments them.
Mr. O’Connor thanked the Mayor and the Council for meeting with the Board in this form.
5. Executive Session - None
6. Motion to Adjourn
A motion to adjourn was made at 8:50 p.m.; was duly seconded; and approved, unanimously.
Respectfully submitted,
Vanessa Perry
Assistant to the Clerk of the Council
Attachments (Exhibits A, B, C, D, and E)
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