2009-2010 Board of Education Budget Update – 8/5/2010

Posted by Bob on August 5, 2010 under Daily Blogs | Be the First to Comment

The recently concluded, 2009-2010 fiscal year was certainly a tumultuous one in Naugatuck given the Board of Education budget crisis that occurred.  Many long days and nights were spent avoiding catastrophic cuts that could have devastated our educational system in the middle of the school year.  Ultimately, an agreement was reached between the Joint Board of Finance and Mayor and Burgesses (hereinafter “Joint Boards”), the Board of Education (hereinafter “BoE”), and collective bargaining units representing BoE employees.  A previous post detailing the particulars can be viewed here.

One of the largest pieces that resolved the issue was the Joint Boards’ assumption of NINE HUNDRED FIFTY FIVE THOUSAND NINE HUNDRED SIX and 00/100THS ($955,906.00) DOLLARS of the BoE’s operating deficit in exchange for guarantees from the BoE to change health care consultants and maintain the Borough’s Comptroller, Wayne McAllister, as the BoE’s business manager.  The Joint Boards voted sixteen (16) to three (3) to approve this arrangement, after the BoE vote and bargaining units for Naugatuck’s teachers and administrators approved employee concessions as well.  Such concessions might have seemed insignificant at the time, particularly in light of the amount of dollars to be assumed by the Borough.

While the change to the Borough’s municipal health care consultant, CBC Kane Partners, produced significant savings for the 2010-2011 budget recently adopted, having Comptroller McAllister remain as the BoE business manager has paid huge dividends.  A memorandum recently released by BoE Chairperson Kathleen Donovan indicated that what once was a NINE HUNDRED FIFTY FIVE THOUSAND NINE HUNDRED SIX and 00/100THS ($955,906.00) DOLLAR deficit, is now a TWO THOUSAND FIVE HUNDRED EIGHTEEN and 69/100THS ($2,518.69) DOLLAR surplus.  Said surplus was confirmed by Comptroller McAllister.  When the final transfers are made to reconcile the 2009-2010 Borough budget in September, 2010, not a single dime will be transferred into the BoE accounts.

I commend my colleagues on the BoE for working through a very difficult and tense time, recognizing that changes were needed in the BoE business office and putting a halt to any discretionary spending or hiring.  While there has been much criticism directed at the BoE, of of which I am a member, the reality is that difficult decisions were ultimately made and sound fiscal management was restored.  There are certainly more difficult decisions ahead and always room for improvement, but resolving the systemic issues in the business office in this economy was no small task.

Thanks is also owed to the employees who provided concessions to close the gap.  Naugatuck teachers and administrators provided mid-year concessions, and non-certified staff agreed to a wage freeze for the 2009-2010 year.  The employee concessions were a significant part of the reason the Joint Boards agreed to assume the operating deficit.

Joint Boards members, led by former Chair Ray Lennon, also banded together to address the operating deficit.  Many long meetings produced a general consensus that being part of the solution, under the right circumstances and conditions, was better than allowing mid-year layoffs to devastate our school system.  In consultation with the Comptroller, it was determined that there was a sufficient plan to assume the deficit, and the strong likelihood that Mr. McAllister could reduce the BoE operating deficit by reforms to and better controls in the BoE business office.

Great thanks, however, must be given to Mr. McAllister.  Naugatuck has had its share of misfortune over the years, but we certainly struck gold when Mr. McAllister was first hired many years ago.  Despite his quiet and humble demeanor, Mr. McAllister possesses tremendous talent and a work ethic second (2nd) to none.  His leadership, expertise and conservative management style turned a huge liability to the Borough into a surplus.  This was done without smoke and mirrors or any quick-fixes; but through extremely competent fiscal management and a lot of long nights and weekends.  Mr. McAllister went above and beyond the obligations of his duties on behalf of taxpayers, students and educators alike; all while duly acting as the Borough Comptroller at the same time.  The fact that he also volunteered to make and made financial concessions himself is often forgotten.

More information regarding the closure of the 2009-2010 fiscal year will be forthcoming.  While we undoubtedly face additional challenges in this fiscal year and those to come, the very difficult 2009-2010 fiscal year has come to a close.