Board of Education Budget Update – 1/22/2010

Posted by Bob on January 22, 2010 under Daily Blogs | Read the First Comment

After months of uncertainty and heated debate, a proposal will be presented to the Joint Boards of Finance and Mayor and Burgesses (“Joint Boards”) to resolve the 2009-2010 Board of Education budget crisis.  A special meeting of the Joint Boards will be held on Tuesday, January 26, 2010, 7:00 P.M., currently scheduled for the Commissioner’s Corner (fourth floor) at Town Hall.

Since firm details of the Board of Education deficit were first revealed at the November 11, 2009, special meeting, approximately FIVE HUNDRED THOUSAND and 00/100THS ($500,000.00) DOLLARS were cut from the budget primarily from mid-year personnel departures not being replaced and reductions to special tuition trending much better than expected.  The budget status as of January 14, 2010 can be viewed here.  The deficit verified by the business manager after such reductions is ONE MILLION FIVE HUNDRED FORTY EIGHT THOUSAND THIRTY TWO and 00/100THS ($1,548,032.00) DOLLARS.

A budget subcommittee of our Joint Boards has discussed and proposed the following to address the remaining deficit:

• Concessions from members of the Naugatuck Teacher’s League (“NTL”) equivalent to approximately FIVE HUNDRED THOUSAND and 00/100THS ($500,000.00) DOLLARS;
• Concessions from members of the administrators union equivalent to approximately TWENTY SEVEN THOUSAND and 00/100THS ($27,000.00) DOLLARS;
• An agreement by the Board of Education to (i) ensure the temporary business manager, Wayne McAllister, to remain in that capacity through June 30, 2011; and (ii) change the  health insurance agent of record to the Borough’s municipal agent of record, CBC Kane Partners.
• An agreement by the Joint Boards to cover the remaining difference with funds from the municipal budget at the end of the fiscal year.

The proposal, while far from perfect, presented the only responsible answer to resolve the current year’s crisis at this point of the school year and begin addressing the far more difficult issues we will face in the upcoming 2010-2011 budget.  The only alternatives were mass layoffs of over one hundred (100) teachers or doing nothing and hoping the Joint Boards cover the deficit at the end of the fiscal year.  Both such options would have resulted in drastic consequences to our entire community.

Last night the Board of Education met to discuss and act on various deficit resolution measures.  Actions taken were as follows:

• The Board of Education voted seven (7) in favor to one (1) opposed to accept concessions from NTL totaling approximately FIVE HUNDRED THREE THOUSAND and 00/100THS ($503,000.00) DOLLARS of concession.  Said amount represents:

1. Two (2) Furlough days to be taken around the Memorial Day holiday representing approximately ONE HUNDRED FORTY THREE THOUSAND and 00/100THS (143,000.00) DOLLARS per day;
2. One (1) Deferred Payment day representing approximately ONE HUNDRED FORTY THREE and 00/100THS ($143,000.00) DOLLARS to be paid without interest in December 2011; and
3. Elimination of five (5) hours of common planning time representing approximately SEVENTY FOUR THOUSAND and 00/100THS ($74,000.00) DOLLARS.

• The Board of Education voted seven (7) in favor, zero (0) opposed and one (1) abstaining (myself due to conflict) to accept concessions from the administrators union totaling approximately THIRTY FOUR THOUSAND and 00/100THS ($34,000.00) DOLLARS.  Said amount is equivalent to approximately four (4) days of pay, which will be worked without compensation.

• The Board of Education voted unanimously (8-0) to make a supplemental funding request to the Joint Boards in the amount of NINE HUNDRED FIFTY FIVE THOUSAND NINE HUNDRED SIX and 00/100THS ($955,906.00) DOLLARS.  The difference between the total deficit less the request and the concessions would be additional concessions from non-union personnel.
• The Board of Education voted five (5) in favor and three (3) opposed to accept the proposal of the Joint Boards budget subcommittee ensuring Mr. McAllister remain the business manager through June 30, 2011, and a change to the Borough’s health care consultant agent of record; subject to approval of the funding request by the Joint Boards.

The Joint Boards budget subcommittee has reviewed, discussed and determined that it has the ability to cover an amount up to the deficit within the confines of the existing budget without any reduction in undesignated fund balance or any additional assessment.  The proposal will be discussed with the entire Joint Boards on Tuesday (1/26/2010) with possible action to be taken.

This solution provides sacrifice by all parties involved.  I will also share in the sacrifice by working five (5) days without pay as well.

Should the Joint Boards approve the resolution, this will end a long, frustrating and disappointing process.   Lessons must be learned to prevent this from occurring again.  This has been said before, but never with the unification of the Borough’s financial department and the Board of Education business office through Mr. McAllister.  We must have the most accurate, financial information available to provide quality education in difficult and uncertain economic times without overburdening taxpayers.  In addition, the cost of health care and pace of change within the industry requires the highest level of expertise available and the ability to be proactive rather than reactive.  The assurances contained within the proposal provide us with the best chance of success moving forward.

I would like to thank the teachers and administrators for agreeing to make financial sacrifice to the benefit of our students and taxpayers.  While we face more difficult decisions moving forward with regard to the 2010-2011 budget, it is reassuring to know that we have established a respectful relationship to achieve our common goal of a quality education.

In addition, Board of Education members Marya DiPerna, Dave Heller, James Scully and Rocky Vitale should be commended for choosing to support a solution that prevents mass layoffs, allows the Borough the opportunity to address the deficit in a responsible manner, and provides tangible assurances of sound financial management moving forward.  I realize that their individual votes are not representative of their complete endorsement of every aspect of the plan, but it shows a thoughtful willingness to resolve this situation in a cooperative manner.

I would also like to thank the members of our Joint Boards budget subcommitee:  Deputy Mayor Tamath Rossi, Finance Board Chair Ray Lennon, Burgess and Finance Board Liaison Bob Neth and Finance Board Vice Chair Jack Tavares.  Given the heightened level of partisan bickering occurring in Washington, it is refreshing to work with such talented individuals who put the betterment of their community ahead of their political affiliation.  Their collective wisdom is a great service to Naugatuck during these trying economic times.