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Budget discussion spurs debates

CORNWALL — The response of the Board of Finance (BOF) to proposed town and school budgets for 2014-15 was more of a philosophical and legal one than about numbers.The board’s regular meeting March 19 was also a chance to look at other aspects of spending. A large chunk of the meeting was devoted to discussing with school board members and Cornwall Consolidated School (CCS) Principal Michael Croft more than $47,000 in surplus funds. One part of the surplus is $10,000 — the difference between what was approved in the local budget for regional education spending and the actual assessment after a reduced Region One budget was accepted after seven referendum votes. Another $37,531 is a credit to the last payment (in April) on Cornwall’s regional assessment now that actual spending for the fiscal year can be determined. At its meeting earlier in the day, the school board heard Croft’s proposal to use $25,000 to close a budget gap that came when a new English teacher was hired over the summer at a greater salary and benefits cost. He said spending for non-essentials had been carefully monitored up to that point. Another $12,000 could be used to “pre-buy” instructional supplies for next year and reduce that budget line. The school cannot retain funds from one fiscal year to the next. Only the town can have savings accounts, capital project funds and other undesignated fund balances.Finance members were divided on who gets to decide what to do with those funds. Funds for town or school?In some other towns it was decided that on a legal basis, the “returned” funds belong to the town, as the tax-levying authority that pays the bills. The discussion in Cornwall last week included setting policy for procedure going forward. Longtime finance member Earl Brecher said it has been a practice to let the school board make the decision about spending it.Chairman John LaPorta compared it to an additional revenue source, since it is above what was budgeted. He also noted that the school budget becomes one line item in the town budget, and the finance board can ask only for a change to the bottom line.Celia Senzer noted Croft said they could have gotten by without the $37,000. She advocated reducing the amount the school wants to use.The local school board is proposing a $148,541, or 5.84 percent increase that is due mostly to contractual salary increases and a regionwide increase in health insurance costs. Some finance members said they were amazed at how small the overall increase is, given the large increases in those two categories. Croft and school board Chairman Becky Hurlburt said big savings can come only with staffing cuts, which are not possible given there is only one teacher per grade.But not every finance member agreed. Combined classroomsAlternate finance member Maureen Donahue noted Cornwall has had combined classrooms in the past, and that schools with similar declining enrollment, such as Lee H. Kellogg in Falls Village, are doing so successfully now. She added that CCS combined two grades recently, but kept the extra teacher on staff.She acknowledged that not laying off teachers has been a priority for the school board, but staff reduction in response to enrollment is “a trend that needs to start now.”Senzer said she wholeheartedly agrees. Croft presented a plan to make a change that involves staffing, and possibly a savings.Board clerk Susan Gingert will retire at the end of April. The plan is to transfer the payroll and accounts payable portion of that job to the town finance director, who will have to be paid accordingly. Croft said it is not ideal from his perspective of having a 35-hour clerk who can occasionally squeeze in tasks not in the job description. But it will make the position ineligible for health insurance. The new position would be 28 hours with vacation time. The school board would maintain the option to return to the current full-time clerk for any fiscal year.Finance members also debated a bottom-line cut for the school budget proposal. While some said it was a little late in the process, others said this is precisely what the budget season is about.In the end, it took four motions to hash out two decisions. Bill Hurlburt moved that the school budget be approved as presented with the condition that next year, surplus funds be returned to the town. Town Finance Director Barbara Herbst said she believed combining the two would violate state statute. A motion by Senzer to request a 10 percent reduction to the school budget was not seconded.Janet Sanders moved the school budget be accepted as proposed. It was approved with one dissenting vote, from Senzer.Brecher moved that the Region One budget overages be spent as proposed, but that they be “returned to the town” after this. Senzer was, again, the only nay vote.The selectmen’s budget is proposed to rise by 5.25 percent, or more than $89,000. A large part of that is the same regionwide increase in health insurance costs. Greater social service needThere was a little friction over control. While LaPorta said the finance board could make changes to any line item, First Selectman Gordon Ridgway disagreed.“Your job is not to micromanage each line item,” he said. “It’s to determine how much the town can afford and not to make decisions about line items.”Specifically addressed was the social services budget. The selectmen approved half of a $6,000 (or 41 percent) rise to meet increased demand. Finance members said they were not aware of what the social worker was doing in that department and if the increase is merited. Ridgway said his board asked for monthly reports to track services and case-load changes.Finance members passed a motion to approve the entire request for an increase from the Northwest Corner Chore Service. They had been getting a $1,500 donation. They asked for $5,000. The selectmen put $4,000 in their budget, and advised that it covers only part of the gap between costs and what residents pay for the services that help keep seniors and disabled people in their own homes. That approval came after a withdrawn motion and discussion over a suggestion by Senzer to take the additional $1,000 from a $2,000 donation budgeted for the Cornwall Conservation Trust. Finance members said they support the work of the trust and reasoned that whether or not the funding could be found elsewhere, it was too insignificant an amount and would send a false negative message.A look at revenues and other budget impacts was tabled due to time, until the next meeting.

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