Compromises on the table for 2003 town budget
Published on April 24th, 2002
STONEHAM, MA–The May 6 Annual Town Meeting booklet went to print Monday with the Finance Board’s budget recommendations and the unofficial approval of most Selectmen.
The Town budget will be around $53 million, but town officials are still working out the multi-thousand dollar details.
Ten members of the Finance Board, four Selectmen, three School Committee members, Town Administrator (TA) David Berry and School Superintendent Joseph Connelly got together April 16 to work toward a final, balanced town budget for fiscal 2003.
The TA has proposed a $53,617,125 budget, drawing on everything from Overlay Surplus to legal settlements. Town Meeting voters have the final say on May 6, but what people will be voting for remains uncertain until Selectmen approve department budgets this week.
But the Finance Board voted on April 16, and Chairman Richard Gregorio expects Selectmen to stick to the compromises proposed at that joint meeting.
From salaries to stipends
Selectmen were going to give themselves a raise from $2,500 to $3,000 a year, but this idea has been scrapped, Selectmen Chairman Kennedy said.
The Finance Board also voted to recommend paying elected officials with stipends, not as salaried employees. Thus, elected officials would no longer acquire pension benefits. As a compromise the Finance Board proposed grandfathering current officials as employees.
Last week Kennedy said Selectmen needed time to think about the proposal. Selectmen were scheduled to meet Tuesday night, April 23.
Reserve Fund empty
The Finance Board voted to put nothing in the Reserve Fund. Traditionally, the Finance Board recommends depositing $50,000 in the spring and $100,000 in the fall. This is an annual account used to cover emergencies. The Town can draw from this account without a Town Meeting vote, but at year’s end the balance reverts into free cash.
Police
Selectmen and the Finance Committee agreed that the Police Department should get $31,674 more than the TA recommended in his balanced budget proposal. The funds would make a part-time secretary full time and add hours to the janitor’s schedule. The Selectmen have wanted this for weeks. The Finance Board was on the fence until Chief Gregory O’Keefe convinced the Board that the position impacts public safety.
“The Chief said that increased paperwork has required taking officers off the streets to do clerical work,” Gregorio said.
Some of this paperwork is from paid details, but the Police did have a full-time secretary in the past before previous cuts.
Fire
Both boards also recommended hiring two new firefighters, but slashing overtime to pay for the salaries, altering the overall Fire Department budget by zero dollars.
“We can address any shortages in overtime in the fall,” Gregorio said.
Capital Account slashed
The Finance Board also recommended putting only $10,000 in the Capital Account. Berry had recommended $35,000.
This account pays for things like police cruisers or a DPW tractor. Berry had recommended a conservative $35,000. But department heads do not have any immediate capital needs, and times are tough, so the Finance Board decided to recommend cutting closer to the bone, leaving just a little, just in case. The Town can always put more in come fall.
Schools get more $
The Finance Board voted to recommend giving the School Department $21,293,847 this spring, which is $147,000 more than the TA’s recommendation, plus $113,000 in projected free cash next fall.
The free cash figure represents free cash generated by items in the schools 2002 budget. Usually all free cash goes into the same pot and is shared by all. But Kennedy said Selectmen support giving the schools the additional $113,000 in the fall even if the free cash projections are wrong because under this proposal teachers would not be cut.
Voke gets less, for now
Selectmen and the Finance Board agreed to recommend making the minimum payment to the Northeast Regional Metropolitan Vocational High School in Wakefield. Stoneham is one of the 12 member communities. If a majority of the communities vote down the Voke’s budget, the school must come back with a reduced proposal. If not, Stoneham has to pay up, but either way, this buys time.
Something for the muni’s
Selectmen and the Finance Board have recommended adding $44,646 for town employee raises, which would translate to 2.5 percent raises beginning July 1 plus additional one percent raises from Jan. 1. This was done to ease mounting tensions between the schools and other town employees. Teachers will receive a four percent raise this year under an existing contract.
The TA’s budget with these additions and a slightly more optimistic view of projected excise taxes and investment income will balance on paper and should work, barring any big, ugly surprises.
Trouble on the horizon
House Speaker Tom Finneran (D-Mattapan) made a comment this week that state aid to education could be cut by 10 percent across the Board. If this happens, things could get ugly.
The fear level has risen so high that elected officials are talking about getting rid of the Proposition 2 and 1/2 property tax cap. For years this has been a sacred cow to tax conscious voters and vote conscious officials. But last week Selectmen sent a letter to the State House, saying Prop 2 and 1/2 may have to go.
Without more help from the State, higher taxes, lower salaries or fewer services may be in Stoneham’s future. There’s only so much to go around. And overall state aid — estimated by the TA to be $60,000 more in 2003 than 2002 — could actually be less.
The School Committee is scheduled to vote on its budget recommendations in agreement with the April 16 compromise tonight, April 24.
School Committee Chair-woman Marie Christie could not be reached for comment.
The people of Stoneham can join this debate tonight at the School Committee meeting and later at the May 6 Town Meeting.
Next week more details from the Selectmen and School Committee budget votes.
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