Town boards prepare for austere budget plans

SALISBURY — At a special meeting of the Board of Finance Thursday, Jan. 14, members of the Board of Education and all three selectmen worked together to get a sense of what’s coming up for the next round of budget building.

The meeting — informal and relaxed in structure and tone — was designed in part to avoid some of the sometimes contentious back-and-forth last year over the Salisbury Central School budget.

As was the case last year, town revenues are down and state aid for road repair is uncertain.

Board of Finance Chairman Bill Willis said the way the board traditionally proceeds is to estimate all revenues — except property taxes — first.

“Again this year it doesn’t look that attractive,� said Willis, adding that the state is struggling with a budget deficit as well.

But Willis said the finance board would not try to give either the Board of Education or the selectmen a precise number to shoot for — for now, anyway.

Last year the finance board set a goal of a tax increase of no more than 2.2 percent, and both the selectmen and the Board of Education prepared multiple versions of their budgets to meet that goal.

The selectmen began with a budget that was essentially the same as the previous year’s, and then whittled away to produce a bottom line that First Selectman Curtis Rand at the time called “responsible and prudent.�

The Board of Education’s task was complicated by the discovery of the theft of $110,000 from board and school accounts by former board clerk Lori Tompkins, who will be sentenced later this month.

The missing money created an accounting nightmare that forced the Board of Education to produce a “zero-based� budget, a time-consuming and cumbersome process in which every single line item had to be set at zero and then recreated, using invoices and other documentation.

In other words, instead of looking at what had been budgeted for individual line items in past years and comparing that to what was actually spent, the board and school had to sit down with all the school’s bills and create a new budget from scratch.

New accounting techniques have since been adopted, and new safeguards put in place.

At the Jan. 14 meeting, Rand said he expected the growth in the grand list to be down. “Growth in the grand list is the increase in value of property across the board,� he explained. “We’ve been trending down.�

Property includes real estate, motor vehicles and business equipment.

An analysis of grand list increases provided by Rand shows the increase in assessment was $14 million in 2006, $19.8 million in 2007 and $15.14 million in 2008. (The net assessment for 2008 was $1,104,201,998.)

At a guess, Rand said, he believed this year’s increase would be half of last year’s.

At this stage of the budget process there is a lot of uncertainty, acknowledged finance board member Carl Williams.

“We have to take a guess as to revenues, unexpended funds and surpluses.�

Board of Education Chairman Roger Rawlings asked Willis, “Can you give us an idea of the Board of Finance’s role? What can the board do to the Board of Selectmen or Board of Education budgets?�

Willis replied that the finance board can eliminate line items in the selectmen’s budget, but for the school budget it can only ask for spending to stay at a certain level.

Last year there was disagreement among members of the education and finance boards and among the public about the school budget, and there was some speculation that the entire town budget could be defeated as a consequence.

In an e-mail Willis clarified the process further: “The Board of Finance must recommend to town meeting a budget (except the Region One budget, which is voted on by automatic referendum). If the Board of Selectmen or the Board of Education  opposes the recommended budget they can ask the town meeting to vote it down.

 â€œThe town meeting can’t vote to appropriate more than what the Board of Finance recommends.

“The town meeting can vote down a recommended budget that it feels is too high or too low. If the town meeting takes this action the Board of Finance will hold a public meeting and recommend another budget it believes the town meeting will support.

“Both budgets must be voted up or down together.�

Brian Bartram from the Board of Education asked, “Assuming the grand list is down, and revenues are down, should the Board of Education come in lower than last year?�

“That would be prudent,� said Williams.

Attending the special meeting were Willis, Williams, Mat Kiefer and Alice Yoakum from finance; Rawlings, Bartram, Christina Cooper, Jennifer Wiegel, Kay Lindsay and Amy Lake from education; and all three selectmen, plus town comptroller Joe Cleaveland.

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