We Need to Stick Together – 4/21/2010

Posted by Bob on April 21, 2010 under Daily Blogs | 3 Comments to Read

Spring is often a contentious time in the Borough.  In odd-numbered years, the blossoming of tree leaves and start of baseball season is accompanied by municipal elections.  Every year spring brings budget season, where elected and appointed members of our community attempt to meet increasing needs with limited resources.

I remember my first (1st) budget in 1999-2000, after being elected Burgess.  It was the first of many times that I heard that it was going to be a “bad year” in Naugatuck.  The specter of revaluation loomed over the Joint Boards of Finance and Mayor and Burgesses (“Joint Boards) due to Naugatuck’s failure to do what one hundred and sixty seven (167) other communities (us and Waterbury) had already done since 1979:  revalue real property values .  Due to such a long gap and rapid changes in the market, implementation of revaluation would mean that many residential property owners would experience a massive increase in their tax bills.

Revaluation was not implemented until the 2001-2002 budget.  While other communities invested during the peace and prosperity of the 1990′s, Naugatuck had numerous “bad years” that resulted in little to no improvements to core infrastructure that did not include capital bonds.  I was as guilty as anyone accepting that it was a “bad year” and urging caution.  Comptroller Wayne McAllister often joke that the last “Good year” Naugatuck had was named Charles.

The 2009-2010 budget taught us really what a “bad year” means.  Fueled by a global recession unlike anything seen since the Great Depression, the citizens of Naugatuck and many other communities experienced life-changing events such as job loss, foreclosure and reduction in the value of assets and savings in record numbers.  The ability to pay for government services that many of us take for granted was dramatically reduced and local revenue stagnated or declined.  The upcoming fiscal year of 2010-2011 offers more of the same.

Since taking office in May, 2009, a disproportionate amount of my time has been addressing the 2008-2009 Board of Education (“BoE”) deficit, the 2009-2010 BoE operating shortfall and the projected shortfall for the BoE’s 2010-2011 budget.  While there were many issues which I have discussed in other posts involving 2008-2009 and 2009-2010 BoE budgets, difficult choices facing Naugatuck for the 2010-2011 school year are very similar to issues being hotly debated in school districts throughout Connecticut and the entire nation.

While most of the headlines have involved school issues, the municipal side of Naugatuck’s budget also presents numerous problems that will require tough choices.  Our administration has asked department heads to submit budgets that essentially will maintain stagnant expenditure levels for the third (3rd) straight year.  Given increases in contractual obligations (even with an across the board wage freeze for municipal bargaining units in 2009-2010), health care costs and utility prices, this is an extremely difficult request.

Reorganization of our Public Works Department and early retirement packages have resulted in the reduction of seven (7) municipal employees since 2008-2009 (according to the 2009-2010 Human Resource Report).  Given that certain public safety obligations have minimum staffing requirements and employees are already responding to increasing challengers with less, additional reductions are difficult to achieve.  We continue look for additional cuts.

The 2010-2011 Borough budget is further hindered by this startling fact:  Even if both the municipal and BoE budgets were able to achieve another budget with no increase in expenditures, non-tax revenues are projected to decrease by approximately ONE MILLION TWO HUNDRED THOUSAND and 00/100THS ($1,200,000.00) DOLLARS.  Approximately SIX HUNDRED FIFTY THOUSAND and 00/100THS ($650,000.00) DOLLARS of this revenue reduction is directly attributable to loss in state grant-in-aid.  To reiterate, even if we have no spending increase in the entire Borough over 2009-2010 levels (which will be extremely difficult to achieve), we would still be approximately ONE MILLION TWO HUNDRED THOUSAND and 00/100THS ($1,200,000.00) DOLLARS in the hole.  Grand list growth at 0.3 (0.3%) percent offers little relief.

Complaining or bearing news of gloom is not my intention.  This will do us no good.  I am simply attempting to put in perspective the serious financial issues facing our community.  To believe we will endure these unprecedented economic times without sacrifice and pain is unrealistic.  What we must not do, however, is allow difficult circumstances to tear us apart as a community.

We are a diverse Borough with many people who have passionate opinions on many issues.  Honest and open debate is essential, but we must all realize that many will not agree with all decisions that are made.  Choices such as cutting educators, closing and/or reconfiguring schools, raising taxes, laying-off employees and cutting municipal employees are inherently unpleasant.  Universal consensus is an unrealistic goal destined for failure.  Avoiding the tough choices or attempting to pass them along to someone else is not why we are elected.

As decisions are made in the coming weeks, our initial reaction will be how such actions affect our individual lives and our families.  Undoubtedly many will disagree.  We must not lose sight, however, that we are inherently all in this together.  Naugatuck’s future may very well be defined on how we react to this “Great Recession”.

Failure to respect one another will lead to mistrust and lack of participation.  Viewing the world only through our own eyes will yield decisions made more on self-interest than overall good.  Lacking perspective that Naugatuck is not alone facing difficult decisions will diminish our sense of community pride.  All of these results will leave Naugatuck ill-prepared to capitalize on opportunities that will present when the economy recovers.

We can, however, choose a different path.  With challenge we have opportunity.  Scarcity of resources forces us to closely examine how our government conducts business.  Operating leaner and more efficiently will make Naugatuck a better, more affordable community in the long-term.  Governing “smarter”, however, will involve some pain.  Presuming otherwise is fantasy.  Making government work better will require all of us to be more-informed, and open to new ideas.  Many of us, including  myself, will have many questions and at times feel uncomfortable with change.  That is not an excuse not to do so.

When decisions are ultimately made, we must all agree to move forward.  While decisions-makers need to be well-informed and vote in the best interests of the Borough, we as citizens must put in perspective that all of the choices we confront are less than ideal.  Understanding each others’ positions, hopes and fears is a critical component of staying positive as a community.  Naugatuck has no shortage of caring, intelligent people who can provide valuable input, participate in public debate and offer constructive solutions.  While some will undoubtedly attempt to capitalize on our troubled times for personal or political gain, we must never forget that we are stronger as a Borough when we come together, respect one another and positively discuss solutions that will best position Naugatuck for economic recovery.  Our ancestors did not always disagree, but the community which they built is testimony to what can be achieved when one places the greater good over self-interest.

We, the Borough of Naugatuck, will survive this Great Recession.  It will not be without pain and making difficult choices many of us would rather not make; but we will be stronger because of it.  As we work to address the issues we face in the coming weeks, let us not lose sight of all the wonderful people who live and work here in Naugatuck.  Our collective history is that of a community that has never shied away from challenges throughout the years.  Through information, respect for one another and vision for our future, we will persevere and be prepared for a better day.  The tone we set will not only set an example for our children, but future generations that will learn from out actions.