UPDATED: The BOE proposed budget increase was reduced to a 1.5% budget increase, for a total town budget of a 1.01 mill increase, a 3.5% tax increase. Read the background of the meeting to understand the big picture.
A very bleak revenue future was discussed by BOF members at their 4/1 meeting, punctuated by the recent discovery that WPCA revenue funds ($480,000 last year) will drop to a mere $200,000 in the FY 2010-11 budget, and will be gone entirely within three years. Because of the recently discovered WPCA and other revenue declines, the town is currently running a $170,000 deficit, which will have to come out of fund balance.
Chairman Mike Hazel pointed out repeatedly that even if the Town of Hebron, the Hebron Board of Education, and RHAM came in with 0% spending increases, there would still be a .73 mill increase due to declining revenues and the large increase of Hebron students attending RHAM next year. "People need to focus on the revenue problem, not the spending," he said. "The only way we can offset the deep declines in revenue is by cutting spending or asking taxpayers to make up the difference for the revenue declines."
Member Mal Leichter discussed possibly dropping the town's fund balance to below 7.5%, which would result in a reduction in the town's bond ratings for future bonding, and would also affect the town's accounting ratings.
The board discussed the 30 families in town now on a back tax repayment plan; the number of people who simply can't afford to pay taxes; and the rising number of people who are opting for the tax abatement plan -- which means they pay tax based on their minimal earnings. Yes, the tax difference would have to be paid back whenever the property is sold or transferred, but it could be years before the town saw that back tax revenue due to abatement. For whatever reason, the board decide to increase the projected tax collection rate from 98% to 98.25%, even though this year they only collected 99% of the projected 98% tax collection rate.
"Because of the small grand list growth of only .65% this year," said Hazel, "every dollar we spend will have to be paid by taxpayers." There was also discussion on the stagnant housing market in Hebron. Translation: don't expect a big grand list growth next year; there aren't likely to be a bunch of McMansions built in Hebron anytime soon.
Specific information about Hebron unemployment was revealed.
February 2010 --- 7.3% of Hebron residents are unemployed (all statistics do not include the underemployed or the "I give ups.")
June 2009 --- 6.6% of Hebron residents unemployed
January 2009 --- 6.2% of Hebron residents unemployed
June 2008 --- less than 4.0% of Hebron residents unemployed
If this information alone isn't an eyeopener, then what is?
Using a "fairness" factor in operating budgets, Hebron's town operating budget (without regard for reductions in other accounts) is a 1.48% spending increase (their total increase is .22% due to a new unfunded mandate issued by the state last week: we are now required to pay the cost of "maintenance" on the voting machines); RHAM is expected to come in at 1.5% spending increase (NOT what Dr. Siminiski told me today at 2:30 p.m.... hmmmm); so BOF reduced the Hebron Board of Education proposed budget to a 1.5% spending increase.
The Hebron Board of Education's budget, at 1.5%, was reduced $177,649, for a total FY 2010-11 budget of $11,891,704. It was also revealed that teacher salary increases for this budget are 4.9%; if we understood correctly, this 4.9% is a base increase and any step increases are in addition to the 4.9%.
RHAM teacher salary increases are 4.0%, again, it was implied this was the base salary increase and does not include additional step increases. We need to get a confirmation on this to make sure the data is accurate.
There was one resident who kept insisting that children would "suffer" without the BOE's 3.14% increase, modified at the last minute to the surprise of everyone present to 3.02%.
Suffering is not having food on the table to feed your children (been there), money to pay your mortgage (been there), losing your home (fortunately not there yet), losing your job (been there once; don't want to go there again) -- or having a car without air conditioning in Luling, Texas (where the average temperature in January is 61; 97 degrees in July.) Or a 10-year old girl mowing lawns in that 100 degree weather to earn money for piano lessons because her family couldn't afford it, and had nothing left to sell....
UPDATED: I have since learned that these are NOT "individual music lessons" as stated by the Superintendent at the meeting. They are actually individual lessons by instrument so that children playing that particular instrument can excel in the band. Far different than what was stated at the meeting, but learning this, along with the fact that parents have been fundraising to provide the instruments, as well as additional instruments to "loan" families who can't afford the instruments, I've done a 180 on this issue, and I fully support keeping the .7 Music teacher. It's too bad that this was represented as "individualized music lessons." "Individualized" typically denotes an "individual" and therefore one-on-one music lessons. But that's not the case as it turns out, and I salute the parents who have provided funds to provide instruments to families who can't afford them. Music MUST stay!!
But let's get back to the budget. BOF members voted 4-1 to bring this budget to public hearing on April 13, a total of $33,866,279. Member Tom Sousa voted no, stating that he would be more comfortable with a .5 to 1% budget increase for the Board of Education because "we're comparing apples and oranges with this across the board 1.5% increase for all budget elements." Excellent point... Town employee salary increases are between 2.0 and 3.5%; Hebron BOE teacher salary increases are 4.9%; RHAM teacher salary increases are 4.0%.
This would represent a 1.01 mill increase, or approximately a 3.5% tax increase.
The BOF also pointed out that they have no control over what reductions the BOE will make, but one member clearly pointed out "that the Board has always made the right decisions to the benefit of all children, and I hope you will do the same now." Ahhh... the ADK Elephant in the Room.
The BOF also clearly painted an even more bleak revenue future for next year as one-time stimulus money will not be available next year. They are hoping there will be some recovery in the FY 2012-2013 budget year.
Your thoughts?
