BOF: In tough budget year, wage freezes are not personal

CORNWALL — A public hearing on the 2011-12 budget proposal did not attract much of a crowd April 29. But the discussion was intense at times, indicating that despite a modest increase, no one is convinced the economy is on the upswing.Spending is proposed to rise by $94,634 in the new fiscal year, which begins July 1. That includes a $120,749 combined increase in operating expenses for the town and Cornwall Consolidated School; a $425,000 transfer to the capital spending plan; $197,169 in debt service; and $1,364,014 for the Region One School District assessment. That last line will drop by $97,001, reflecting fewer Cornwall students at the high school. Each town pays a portion of the regional school budget based on the number of students enrolled in the prior fiscal year. The Board of Finance is considering transferring $100,000 from the general fund to cover the increase in the two budgets. There might also be a very small increase to the mill rate. The transfer would leave about $200,000 more than what the state recommends a town leave in reserve.Revenues from the state are expected to drop significantly. But a 4.43 percent increase in the grand list of taxable properties will help.The issue of raises for Town Hall employees is still being debated. Should it be 1 percent, 2 percent, or nothing at all? All have been proposed, with advocates all around. The Board of Selectmen originally proposed 2 percent as a modest cost-of-living increase for the town employees, who do not have a union to negotiate for them. The total salary increases for those six people would add about $12,000 to the budget proposal.Finance members have gone back and forth, first asking for a salary freeze and then asking for 2 percent. The selectmen countered with 1 percent. The tax collector addressed the issue in an emotional letter to the board that spoke to the experience and dedication of the people that handle the important business of the town and its residents.The ongoing discussion at the hearing illustrated how it has become not about percentage increases but the uncertainty of the future, particularly with gas prices here expected to soon reach all-time highs. Finance board Chairman Ralph Gold was prompted to issue a statement in response to talk circulating around town, he said, that questioned his attitude.“Never was there a question of the value of the employees, or that they were not worthy of a raise,” Gold said. “I would like to pay everyone as much as we can, but there are times when you have to make the hard choices.”His philosophy is that raises should be limited in a difficult economic year, and that the town’s actions need to be considered in light of future bargaining positions.Gold noted the teachers’ union is currently negotiating a new contract.“It is very difficult to say we’re not willing to give union employees wages when you’re passing them out where it’s more discretionary.”Procedurally, what can happen from this point is the finance board will discuss public input at its May 19 meeting, where it will vote on a final proposal to send to the May 20 town meeting for a public vote. That discussion will likely continue with the selectmen, who can make the line item change to their budget. Budget proposal changes can be made at a town meeting, but only if the change or changes decrease the bottom line.

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