Date: Fri 12-Feb-1999

Publication: Bee

Author: STEVEB

Quick Words:

budget-Kortze-council-Studley

Full Text:

PAGE ONE / LIBRARY

Finance Panel Gets A First Rough Picture Of The Budget

B Y S TEVE B IGHAM

The proposed $63 million operating budget for 1999-2000 heads to the

Legislative Council next week. It represents about a $2.3 million increase

over the current budget.

So how much of that increase can the town manage without raising taxes? That

is what the council's finance committee tried to determine Wednesday night.

Juggling numbers, committee members attempted to gauge the kind of budget they

will be dealing with. Most of the numbers are still fluid; the only firm

budget proposal at this point is the projected 10.54 percent increase in

school spending from the Board of Education. That figure does not include

nearly $4 million of projected capital spending by the school board.

As of Thursday morning, grand list figures were not finalized, although the

increase is expected to be between 3 and 3.5 percent. That would bring in an

additional $1.5 million. Assuming this year's revenue from other sources does

not increase, or is "flat," the overall increase to taxpayers would be about

$800,000 or about half a mill.

These figures are still preliminary. Things could get somewhat gloomier,

depending on what Newtown receives in state aid. The governor's budget,

unveiled Wednesday, shows Newtown getting less money from state sources. Also,

the Legislative Council must still decide whether to add money to the town's

capital non-recurring expenditures account. If so, that would increase the

Board of Selectmen's budget by $700,000.

Either way you look at, the taxpayers will be hit hard once again, noted

council chairman Pierre Rochman.

"Our taxes are going up considerably faster than the grand list is growing.

New home revenues do not pay for the increased cost of services," he said.

Especially if each home adds two to three children in the school system.

The Board of Education's existing budget represents a 7 percent increase,

meaning the budget is up nearly 25 percent over the past two years, noted

finance committee member Don Studley.

Newtown was fortunate this year to have a $1 million surplus, which will help

offset increases. But committee member Melissa Pilchard wonders what will

happen "one of these days" when there is no surplus.

"We could end up with a $2 million gap," she said.

Fairfield Hills

On Wednesday, the finance committee also voted to add the potential purchase

of the 186-acre core campus to the town's Capital Improvement Plan (CIP). It

was given an arbitrary cost of $6 million.

Committee member Karen Blawie said the Legislative Council cannot ignore those

residents who have requested the town reconsider purchasing the land. She

feels the town's advisory committee made its decision not to buy the land in a

"vacuum," listing the pros and cons, but with no numbers, no complete list of

the needs for the town and having never discussed it with the council.

"We have no firm numbers or costs so it would just be estimates. Nevertheless,

we can't stick our heads in the sand," Mrs Blawie said.

Mrs Blawie reminded the finance committee that the purpose of the CIP is to

help the town plan its capital spending.

"Unless it is in the CIP, I don't believe this council will ever discuss it,"

she said.

Committee chair John Kortze agreed that Fairfield Hills does deserve a "fair

shake," but wondered if the committee might be jumping the gun by putting it

on the CIP already. He suggested waiting for First Selectman Herb Rosenthal to

make a recommendation to the full council.

"How could Herb ask the Legislative Council to consider this? He's already

heard `no' from the advisory committee," Mr Blawie said.

The vote to add Fairfield Hills to the CIP was 3-2. Don Studley and Mr Rochman

voted against the plan. There are no actual costs estimated for the purchase

yet, they argued. Plus, added Mr Studley, purchasing the property is not

necessarily the feeling of the entire town.

"It would just be ours," he said.

The state has received several offers from potential developers, the lowest

being $10 million, according to Mr Rosenthal. Before accepting an offer,

Hartford must offer right-of-first-refusal to Newtown. A decision by the state

is expected to be made by June 25.

Mr Rosenthal said he plans to request that the advisory committee reconvene to

hear from those Newtown residents who feel the town should buy the land.

The question that still needs to be answered, however, is whether or not the

town can afford to buy Fairfield Hills. If the state offers it to a

residential developer, the town may have no choice but to step up to the

plate.

"It has become obvious that we may need to buy it and we literally may not be

able to. That bothers me," Mrs Pilchard said.

The finance committee agreed to rank the purchase of Fairfield Hills as "nice

to have." Right now, it is not considered "urgent." It may become "urgent" in

the coming months.