Date: Fri 21-Mar-1997

Publication: Bee

Author: STEVEB

Quick Words:

budget-council-Cascella

Full Text:

Hearings Set For '97-'98 Budget

B Y S TEVE B IGHAM

Nobody said municipal budgetmaking was easy, especially this year.

Newtown's Legislative Council is laboring at the task under the weight of a

$3.3 million revenue shortfall. Financial aid for schools from Hartford is way

down, and this year's grand list showed a minimal increase. In short, the town

simply does not have the revenue to offset a proposed town budget that

reflects significant growth.

The council has been forced to cut both the school and town budgets in an

effort to hold the tax rate increase to just 1.2 mills, but its decisions,

especially cutting the school budget $200,000, have not been popular ones.

As it now stands, this year's tax rate will jump to 26.2 mills.

The council will conduct a public hearing on the proposed $52.6 million budget

(a 4.8 percent increase) Tuesday night, March 25, at 7:30 pm in the middle

school auditorium. A second hearing is set at the same location Saturday,

March 29, at 9 am.

This year's proposed school budget has climbed to $29.7 million, while the

town budget is up to $22.8 million.

First Selectman Bob Cascella noted earlier this week that this is a year where

"things are coming into fruition," pointing to the sewers, the school and

library additions, and the "never-ending quest to have excellent schools and a

solid infrastructure."

"Given all of the things the town has taken under its wings, I think,

collectively, we're doing a good job to keep the tax increase minimal," he

said.

The council has relied on the expertise of Finance Director Ben Spragg in

devising an alternative financing plan to keep the taxes down; mainly, funding

$1 million worth of budget items through the town's capital non-recurring

expense account.

Mr Cascella believes credit should be given to the council for setting aside

money in the capital non-recurring account the last few years for tough years

like this one.

Finance committee chairman John Kortze said his committee was given an

original budget that would have increased the tax rate as much as 2.2 mills.

That was just too high.

"The town has a revenue shortfall, but through some brainstorming and hard

work the finance committee made a recommendation to offset that shortfall. The

net effect was we were able to fund the budget with what I would consider a

realistic increase," Mr Kortze said.

"The bottom line is we're short on revenue," Mr Spragg said. "The state

continues to pass down mandates, but it does not pass down the support it once

did. We're getting about $300,000 less this year and even less next year."

New Costs

The new costs in the Board of Selectmen's proposed budget include:

$300,000 for road work improvements.

$275,000 for sewer start-up and hook-up costs.

$328,000 in debt service.

$125,000 for fire/emergency personnel incentive plan.

$100,000 for self-funded insurance.

$35,000 in contingency.

$25,000 for new roof at Edmond Town Hall.

Some of these figures are being offset by reductions elsewhere in the budget,

LOCIP money, and funding through the capital non-recurring expense fund.

The new costs for the Board of Education's proposed budget include:

$375,000 for contracted salary increases.

$243,000 to maintain and use 109,000-square-feet of new space at Hawley and

Newtown High.

$209,000 for new certified positions.

$151,000 for sewer hook-up costs.

$119,000 in out-of-district costs.

$92,000 for computer replacements.

$70,000 for technology support positions.

$61,000 for instructional supplies.

$57,000 for contractual services.

$186,000 for miscellaneous costs, including bus driver salary increases,

equipment and staff development.

The Cuts

When the Legislative Council first received the proposed town budget, it was

looking at a tax rate increase of more than two mills. Council members said

they had no choice but to make cuts. But as newly elected council chairman

Pierre Rochman points out, a cut isn't always what it appears to be.

"Yes, the council did cut $200,000 from the proposed Board of Education

budget, but the cuts were made to increase requests and do not mean that the

school system will have less money to work with than it currently has," Mr

Rochman said.

If you're looking at increases, Mr Rochman said, the Board of Selectmen's

budget increase over last year is only $740,000 (3.5 percent), while the

school's budget is up $1.4 million (5.2 percent).

"The reason why the Board of Selectmen's budget looks like a big increase is

because the million dollars we borrowed for roads last year is now in the

operating budget," Mr Rochman said.

The council chairman also pointed out that the interest costs of the loans for

the renovation and addition work to the schools and library always show up in

the selectmen's budget (debt service).

The Board of Selectmen's budget took a hit this year, as well, with $200,000

being cut from the operating budget and another $200,000 cut out of roads.

Let The People Decide

Legislative Council member Jack Rosenthal said he has to laugh when he hears

his fellow council members say, "One mill or two mills won't fly with the

taxpayers."

"How do they know this? How many people did they speak to, to get that

impression? What they should be thinking is `Do we have the resources

necessary to support this budget?'" Mr Rosenthal said. "We should not be

passing judgment beforehand. We should wait until the people vote on the

budget and then make changes. The public will tell you when they accept or

reject the budget."

About two dozen school supporters showed up at last week's Legislative Council

hearing to voice their concern over the proposed $300,000 in cuts to the Board

of Education budget. When $200,000 was cut, most were still angered, though

they say they expected at least some school cuts. A large turnout is not

expected at the hearing, according to one parent, because most school

supporters feel it will be impossible to get the council to reconsider.