FY2000 budget is passed after discussion on audit
Published on May 5th, 1999
STONEHAM,MA - The presentation of the Fiscal Year 2000 budget at Monday's initial session of the Annual Town Meeting quickly turned into a question and answer period focusing on the audit ordered by the School Department in late February of this year, a report which is currently in the hands of the District Attorney's Office.
Article 7 of the Town Meeting requested that voters approve the $40,898,430 budget which, members of the Finance and Advisory Board determined, would offset the projected cost of services in the municipal and school departments for the coming fiscal year.
Beacon Street resident Alexander Janko questioned whether voters should make any appropriations to the School Department due to the ongoing investigation of Dr. Frank Gagliardi, former director of Stoneham's Special Education Department, who resigned from his position in early March after an investigation into a possible misappropriation of funds was begun. Janko asked why voters should approve the $17,575,000 for schools when some residents aren't confident with how the money has been managed.
"That has no bearing whatsoever on the budget that's before you," Town Administrator Jeffrey Nutting told Janko. Nutting explained the process by which the audit was undertaken.
According to the town administrator, when Superintendent Joseph Connelly assumed his post in August 1998, an initial audit was conducted and turned up some questionable numbers in the Fiscal Year 1998 budget. Once this information was relayed to members of the School Committee and later to Nutting, himself, $25,000 was appropriated to undertake a full-fledged audit. This audit was received by the School Department and then was turned over to the Middlesex County DA's Office. According to Nutting, decisions are now being made as to whether charges will be pressed against Dr. Gagliardi and/or other individuals.
Charles Street resident Thomas Noonan supported Janko's opinion, however, and asked that Article 7 be tabled until further information was released to the public.
"I think that money misappropriated in the past lessens our integrity... Why should I trust (in the town government)?" Noonan asked.
Nutting reiterated his statement that the ongoing investigation focuses solely on monies from the Fiscal Year 1998 budget. He also stated that the DA's Office will likely not allow the public release of the audit for another three weeks.
"You need a budget by July 1 by law, otherwise you have to shut down your government," the town administrator told the gathering. "To wait to vote on the town budget beyond this evening does not serve your best interest.
"There's no reason not to trust. I can only assure you that I have the full faith and confidence in the School Committee and in the superintendent of schools."
Board of Selectmen Chairman Al Conti also pressed for a vote, but noted that the concerns of residents are valid. One of the biggest reasons he felt comfortable with the appropriation, Conti stated, is the fact that the alleged misappropriated funds were recovered after the investigation began.
"The Board of Selectmen, frankly, are just as concerned as you are," he stated. "If there's concern on the behalf of the town that some of the monies have been lost, then I assure you we've recovered all of it. All of the money has been properly accounted for in this budget."
School Committee Chairman Jeanne Craigie further stated that the integrity of neither the School Committee nor the education of the children of Stoneham had been compromised by the alleged misappropriation and resulting investigation.
"I think the integrity of the School Committee is being challenged here," she stated. "Believe me, there is no one in the town who wants to release this information more than I do ... Not one child was hurt or will be hurt with the distribution of that money."
After nearly an hour of debate, the motion to table Article 7 was voted down. A motion to accept the budget as presented was passed by a large majority.
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