Newtown Officials Poised To Enter Bleak Budget Season

By John Voket

If Newtown Finance Director Robert Tait was a farmer, this would be planting season. Mr Tait has been busier than usual going into his first local budget cycle since taking over the post from now retired Ben Spragg.

Based on a stark memo that hangs just to the right of his computer monitor, Mr Tait is in the final throes of compiling and vetting budget forms submitted by town department heads so he can best equip the Board of Selectmen for its “first bites at the apple,” financially speaking, come January.

As what may be Newtown’s bleakest budget season since the Great Depression descends, that stark timeline hanging beside Mr Tait’s computer will tick away through January. That is when department heads and local agencies who receive taxpayer funding come before the selectmen to explain and, in many cases, meticulously justify proposed expenses.

After which is typically three days of deliberations, with the possibility of more, the Board of Selectmen is bound to hand off its refined townside budget proposal to the Board of Finance by February 9. On or about February 19, the Board of Finance will hold a public hearing on both the town and school district proposals before commencing with deliberations and any further reductions in time to pass a final proposal to the Legislative Council by March 12.

Within a week, the council conducts its own public hearing, followed by additional deliberations and input from various council subcommittees charged with understanding some of the more intricate details of budgets for departments under their purview.

By April 8, the council is bound to adopt its best, and hopefully only, 2009 budget proposal covering both the school and townside spending and revenue plans for voters to consider 20 days hence. And on April 28, taxpayers will have the final say as to whether they collectively accept the council’s decision, or will send it back for further reductions via a majority’s No vote.

Distant Early Warning

An early warning about what could be a decidedly draconian process of delivering a zero tax increase in 2009 was telegraphed in a December 4 letter from Republican Selectman Paul Mangiafico to First Selectman Joe Borst, Legislative Council Chair Will Rodgers, school board Chair Elaine McClure, finance Chair John Kortze, and his fellow selectman, Democrat Herb Rosenthal.

Citing worldwide economic deterioration, escalating job losses, bankruptcies, and bailouts, Mr Mangiafico suggests the town “view our budgeting process very critically — more so this year than in any year in recent memory.”

Mr Mangiafico goes on to suggest achieving a zero-tax increase by offsetting reductions against required capital projects, contractual increases, and committed debt service.

“We must be proactive and committed to the objective to begin with or we will once again be reviewing requests which are unrealistic to the times we are currently experiencing,” the selectman writes. “I truly believe the entire town budget should be developed along these objectives including the Board of Education budget.”

Following a December 8 finance board meeting, during which a 5.25 percent budget growth projection was adopted, Mr Kortze penned his own memo in which he detailed the board’s new guideline for calculating the rate — which averages the last four years as well as a projected current year.

“In doing so and assuming a flat increase for the current year, you arrive at a five-year average of 5.25 percent,” Mr Kortze writes. “This should, in no manner, be construed as a targeted increase for budgets. Please remember that the budget increase is the Town as a whole, including all requests as well as revenues.”

Mr Kortze said his board agreed corresponding departmental increases would be too high for the current year, “but in adopting our new guideline, [the finance board] would allow for correction and that the prudence of averaging more representative of a trend.”

This recommendation was unanimous.

A Growing Chorus

In his letter, Mr Kortze joined the growing chorus of officials voicing deep concerns about national and global forces impacting Newtown’s future spending plans, and revenue streams.

“Central to our thinking ... is the current economic climate and its effect on The Town,” Mr Kortze writes. “To be clear, this coming budget year, and potentially subsequent years, cannot be viewed in the same light as previous budget years. The Town as a whole must approach its spending plans in a manner consistent with the severity of the current economic downturn.”

Despite the declining economy, Mr Kortze presents a plan to achieve one specific capital project, the middle school roof replacement, earlier than planned.

“This is able to be accomplished due to the delay in the high school. It represents substantial savings to the Town,” Mr Kortze continues. “The recommendation is to accelerate the project to the 2010-2011 budget year. It’s unfortunate that we cannot accelerate larger projects, like the Hawley HVAC, but the size of the project does not allow us to do so. This recommendation has it roots in addressing a long standing problem in the school as well as potential savings.”

As far as many other departments seeing much more than a flat line endorsement beyond committed capital projects and contractual increases, Mr Kortze warns, “Although it is always our preference to evaluate the needs as presented, and that theme was discussed this year as well, we are all of the mind that any increase this year is a long shot.”

In passing on its recommendations, the finance chairman concluded that his board “has adopted financial guidelines, which the Council has endorsed in concept, which prepares the Town for a ‘rainy day.’ That day is here.”