4.8% Tax Hike —

Finance Bd. Approves Budget

By John Voket

As in years past, the Newtown Board of Finance voted Monday to support 99 percent of the budget increases proposed by the Boards of Selectmen and Education, according to chairman John Kortze. The current proposal will be examined and voted upon by the Legislative Council in the coming weeks.

If the finance board’s version of the $90 million-plus proposal remains unaltered by the council, and is subsequently approved by a majority of eligible taxpayers, it will increase local taxes by 4.8 percent, raising next year’s tax rate to 26.1 mills. A mill represents one dollar in taxes for every $1,000 of assessed property value.

Voters and supporters of the Board of Education’s side of the budget gathered for the final finance board budget session at Reed Intermediate School, with several in attendance pleading for no cuts to the school’s $57.3 million proposal.

But after much discussion, and several pointed suggestions to Board of Education leaders and school administrators, board members reduced a proposed $4.7 million education increase by seven-tenths of one percent, arriving at a $56,938,770 bottom line. The board also reduced the proposed municipal increase by three-tenths of one percent, arriving at a $33,067,456 figure.

In the final few minutes of last Monday’s deliberation on the education side of the budget, finance board member Michael Portnoy told school board representatives that he would like to see teachers and other union factions within the education department come forward to conduct serious discussions, and possibly consider some nominal adjustments to health benefits.

“We’re facing a townwide burden related to health insurance [costs],” Mr Portnoy told school officials including Superintendent Evan Pitkoff, school Finance Director Ron Bienkowski, and Assistant Superintendent Alice Jackson. “I would encourage the board of ed to open discussions with teachers and others, and try to negotiate a different benefit package to help save [money] on next year’s budget.”

Adding to the insurance burden, Mr Bienkowski told the finance board members during Monday’s meeting that projected revenues in excess of $60,000 coming from adjustments to school board health insurance costs would not be forthcoming.

“There will be no savings [revenue] from the reductions,” Mr Bienkowski said.

Mr Kortze then suggested the school board closely examine staffing levels, especially in areas where guidelines allow for reductions in staff to mirror expected decreases in certain class student populations.

“Projected [student] ratios are trending lower,” Mr Kortze said. “Looking at your projections, if we don’t hire [new teachers for certain grade levels] we would still be within guidelines. You can make an argument that we are over hiring in some spots.”

Superintendent Pitkoff responded that making the suggested teacher cuts in certain cases would provide a 1 to 24 teacher/student ratio.

Dr Pitkoff also relented to the finance board that, in hindsight, the Board of Education should have made a different decision in relation to a $216,000 contribution toward costs to clean up a December 2004 heating oil spill at Reed School. He then acknowledged that his current budget was being negatively affected because projected fuel oil prices escalated instead of decreasing to expected rates.

He added that he was facing an increase in natural gas costs resulting from the Reed School heating system switching to natural gas exclusively until current issues with the parallel oil-fired boiler are resolved.

Before a variety of adjustments to the overall budget numbers were moved and discussed, finance board member Peter Giarratano asked both the Board of Education representatives and First Selectman Herb Rosenthal if there were any other areas of their respective budgets where cuts or savings might be extracted.

Mr Bienkowski said the only area that might shed some savings was in projected electrical utility costs. Mr Rosenthal, on the other hand, stated that the municipal side of the budget was cut as far as he thought it should go.

“The highway department has already come back requesting a transfer of another $50,000 for this year,” the first selectman responded shaking his head.

Finance board co-chair James Gaston then moved the school board budget be approved as submitted.

“Looking at how much you are short, I would be putting money back into your budget,” he said to an enthusiastic round of applause from the audience. “But that’s not going to happen.”

After a second for discussion by Mr Kortze, the flat line motion failed. Mr Portnoy then countered with a motion to cut the school board by $500,000.

After some discussion, that motion failed as well. Then in quick succession, motions to cut the education budget by $400,000, and an amendment to cut it to $300,000 were asserted. While the amendment tendered by Mr Gaston failed, the original motion carried.

In short order, the finance board then cut a capital road improvement line by $50,000 and passed the municipal side factoring in a $61,500 cut in anticipated health insurance costs for town employees.

Following the vote, Anna Wiedemann, co-chair of Citizens For Newtown (CFN), an education support organization, said in a statement that the organization applauded Mr Gaston’s suggestion, and complimented the entire finance board for its hard work.

“We are disappointed that the rest of the finance board did not recognize the hard work and effort on the part of the superintendent and the Board of Education in preparing a fiscally sound budget,” she wrote. “Last year we were told that if we got the budget approved by a large majority, they would ‘hear’ us and let the voters decide.

“Why did they decide against that this year? I would hope that the Legislative Council restores some or all of the funds and truly let the voters go to the polls and make the decision,” Ms Wiedemann’s statement concluded.

Mr Kortze said following the vote that Newtown taxpayers must realize that his board provided 99.3 percent of the education increase requested.

“In simple terms, the taxpayers of Newtown have historically provided 99 percent of what the school board has asked for,” Mr Kortze said. “We didn’t cut their existing budget, we simply reduced an increase consistent with overall increases.”

The finance board chairman then added to the chorus of compliments extended toward his associates. “I applaud the tireless efforts of fellow board members and remind taxpayers that we are proposing spending more than $90 million next year,” he said.

Mr Rosenthal said he appreciated the finance board’s efforts to keep a total tax increase under five percent overall.

“The Board of Finance has to set a budget; that’s their job and it’s a hard job,” he said. “I get calls every day from people who are afraid they won’t be able to afford to live in Newtown anymore because of the taxes. And unfortunately, it seems the ones who are most adversely affected by the tax increases don’t have children in our schools.

“And if we lose these residents, it’s likely that those moving in to replace them will have children in our schools,” he said.

Mr Rosenthal concluded by encouraging all qualified taxpayers to get out and voice their opinions of the budget proposal to the Legislative Council, and at the budget vote.