Date: Fri 18-Apr-1997

Publication: Bee

Author: STEVEB

Quick Words:

budget-referendum-vote

Full Text:

Vote Set April 22 On $52.6 Million Budget

B Y S TEVE B IGHAM

Voters will head to the polls Tuesday, April 22, to vote on the town's

proposed $52.6 million budget for the 1997-98 fiscal year. The referendum will

take place in the Newtown Middle School gymnasium from 6 am to 8 pm.

The proposed budget represents an increase of more than $3 million over the

current budget and includes a tax rate hike of 1.2 mills. The increase is

largely due to the debt the town has incurred for the many projects now going

on in town and for one-time sewer hook-up costs. Making matters worse, the

town's grand list showed a smaller-than-expected increase and state aid to

Newtown was cut back. In short, the Legislative Council was stuck with a $3.3

million revenue shortfall. However, things could have been much worse,

according to First Selectman Bob Cascella.

"Obviously, there is an increase in this budget. Unfortunately, two schools,

the library, road projects and sewers are all coming to bear this year. Given

that, I think the Board of Selectmen, the Legislative Council and the Board of

Education have done a good job. Taxes have only gone up about a mill," he

said.

The rise in cost to the town could have been much higher in light of the tough

budget season, said Legislative Council chairman Pierre Rochman. However, upon

the recommendation of John Kortze's finance committee, the council opted to

transfer $1 million from the town's capital and non-recurring expenditures

fund to pay for certain items in the budget. This move kept the tax rate

increase under two mills. Though this reserve is normally used to fund capital

projects and equipment, the council has been putting money into the account in

recent years earmarked for tax reduction in anticipation of financially tough

years.

"I think the budget is as reasonable as it can possibly be expected

considering this year's revenue shortfall," Mr Rochman said. "I would be at a

loss to understand why the budget would be turned down considering such a

small mill increase in view of the tremendous revenue shortfall."

Council vice chairman Melissa Pilchard agreed.

"It's true there's an increase, but considering all the things we're doing,

we're getting a lot," she said, referring to the various projects currently

going on in town.

Mrs Pilchard said she sees other towns currently struggling with the issue of

building new schools and realizes how timely Newtown's decision to go ahead

with the school and library projects was. Now, interest rates are up and state

aid is down.

"Our timing was perfect. We did it all at once because borrowing was favorable

and state support was better then. In the end, we will come out much better,"

she said.

Council member Jack Rosenthal, along with some school supporters, remains

opposed to the $200,000 that was cut from the Board of Education budget.

"I don't like the arbitrary way this council is willing to cut the Board of

Education budget, and for no rhyme or reason," he said. "People (on the board)

come in with a preconceived notion that two or three mills will not fly."

Nevertheless, Mr Rosenthal believes the budget now being proposed is the best

one taxpayers are going to get.

Superintendent of Schools John R. Reed said the $200,000 cut will likely

affect a new math teaching position and half a clerical position at the high

school.

Dr Reed said the proposed school budget would have had an increase of just 3.8

percent if it hadn't been for two new expenses. Next year, the school system

will be forced to spend $243,000 to heat the additional 110,000-square-feet of

space being added on at the high school and Hawley Elementary School and

$151,000 for sewer hook-ups. As it is now, the Board of Education budget

increased 5.19 percent.

"We need to turn our attention toward supporting the total town budget," Dr

Reed said.

The Numbers

Nearly $35 million of this year's proposed budget will fund the operation of

the town's schools ($29.8 million) and Board of Education debt service ($5

million). Education costs represent 66.1 percent of the entire budget.

The Board of Selectmen's budget represents 33.9 percent of the proposal, with

$15.5 million to be used for town operation and $2.3 million for debt service.

Local property taxes will pay for 72.3 percent ($39 million) of the budget,

state aid will represent 15.5 percent ($8.7 million) of the revenue, with the

rest coming from borrowing ($4.2 million) and surplus ($2.2 million).

An estimated tax rate of 26.2 mills on the grand list of October 1, 1996 is

needed to meet the appropriations.