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It’s time to pay the bills

WINSTED — Superintendent of Schools Thomas Danehy announced Tuesday night that the Winchester school system is facing potential electricity, gas and phone shutoffs and cancellation of its health and life insurance policies due to cash-flow issues in town.In a Jan. 8 letter to Town Manager Dale Martin, Danehy said Connecticut Light and Power, Yankee Gas and AT&T had all put the school system on notice that if bills are not paid by the end of the month the schools will face service cancellations. A payment arrangement is currently in place but requires full payment by the end of the month.At Tuesday night’s Finance Board meeting of the Board of Education, Danehy reiterated his concerns and said he has met with Martin several times to discuss cash-flow problems, which also include the underfunding of teachers’ pensions.“The town can’t have kids learn to read and write when the lights go out,” Danehy said, “so I’m very concerned about the town’s finances and how the town plans to weed through the issues that are upon it now. This is pretty jarring to me.”Danehy noted in his correspondence with Martin that a number of issues contribute to the sense of fiscal instability, including the investigation of town Finance Director Henry Centrella, who was serving at his post when an undisclosed sum disappeared from the town’s coffers for months and then reappeared in a safe at Town Hall. “The cash flow issues with the town, the accounting irregularities with the Finance Department and years of no tax increases have really taken a bitter toll on the town,” Danehy wrote. “We understand that you are struggling to determine just how much money has disappeared because of ‘accounting irregularities,’ but we do not see any steps being taken to keep the town and its schools operating.”At Tuesday’s finance meeting, members of the school board openly considered contacting a bonding agency on their own to pay bills and keep the schools afloat until more revenues are available.“I’ve heard the word ‘bankruptcy,’ but no facts to go with it,” said board member Dr. Richard Dutton. “I wonder whether we can go to the state for funds without involving the town. Perhaps we should pursue that.”Danehy said he has not received a written response from Martin regarding fiscal matters. The superintendent outlined several concerns in his correspondence with the town manager, including utilities, Connecticare insurance payments, payments to SunLife insurance and money owed to The Gilbert School and other service providers such as Shared Services. Danehy said he believes pension contributions have been paid to the town by the school system but have not been deposited into the teachers’ pension fund.“On Sept. 10 you and I met with [school system Business Manager] Nadine Savage concerning our questions related to Board of Education contributions to the pension fund that were not actually deposited,” Danehy wrote, adding that Martin said he would investigate the matter. The superintendent reiterated a request for a full accounting of pension funds and accounts.Danehy noted that the town has budgeted $30,000 for emergency door and fire-code repairs at Hinsdale Elementary School, but the project will cost more than $98,000.“In order to keep operating the school, the mandated repairs and replacement must be done and are obligations of the town,” he wrote.“We are anxious over the flow of tax revenues to the town coffers. Between now and June 30 we have concerns that the town will not be able to get beyond this financial debacle, meet the BOE’s present and future obligations, or the town’s other obligations.”Danehy asked Martin if it would be prudent to ask for state intervention. He also asked the town manager to notify him when Winchester may expect to see the noted issues resolved.

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