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Joint work session yields future budget goals |
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Tuesday, 03 November 2009 |
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Council, committee prepare for minimal state funding. By SARAH TRAVER
WAKEFIELD - Monday evening the Town Council and School Committee met in a
joint work session to get a jump start on the FY2010-2011 budget as well as the status of the FY2009-2010 budget.
School Director of Administrative Services, John Ritchotte, reviewed the 2009-2010 budget for the group. He said there was about a $529,000 positive in the School Fund coming from the charter tuitions, attrition on the salaries and a higher number of retirements than expected.
“We are just beginning the actual school year so we aren’t very far alongin the budget,” Ritchotte said.
Town Council President Kathleen Fogarty explained it was very early in thebudget process but this was a kind of “get together” to have townofficials on the same page. She also explained they were waiting on variables, including the governor’s revenue conference coming up in the month which would give a better picture for starting the process.
Fogarty asked the committee’s goal for the coming year’s budget.
School Committee Chairmen Dr. Anthony Mega said they had not formulated any goals yet. “I do not think that goals at this time are reality based.
It is still too early in the process for us to be looking at that,” Mega said.
He also said many factors would come into account that included the state aid, other post-employment benefits, (OPEB) and healthcare before they could form a working budget.
“On the town side we are trying to be very frugal with our budget. Our goal is to keep the projects that we have planned in place and keep the services at the level that people expect from the town of South Kingstown.
We are trying to evaluate the needs and the services of the town.”
Fogarty said the council wants to work closely with the School Committee and get together early and often.
“We are looking at trying to evaluate the needs and the services of the town and keep them at the level they are and try to be fair to the taxpayer. So we do not have a set number yet as we are working with the
budget,” Fogarty said.
Town Manager Stephen Alfred spoke about the budget process now and in the future. He discussed some numbers from 2008-2009 and the current year. The Undesignated Fund balance is in a good state at the end of this fiscal
year. He said when looking at the 2009-2010 year they were looking at a budget that was reduced by about $800,000 from the 2008-2009 year. When all was said and done, Alfred said they were about $300,000 behind where
they expected to be. He said the town is looking to cut about $330,000 from what they planned to spend in the 2009-2010 budget.
Looking at the horizon, Alfred said the state would probably be forecasting a $150-$200 million shortfall, creating structural problems for the 2010-2011 year. He said it was very hard to predict for the 2009-2010 year without seeing the governor’s budget which is due out later in the month. He said they are not assuming any major growth in local revenues. Alfred said they are forecasting a 2.25 percent salary increase in the 2010-2011 year for municipal employees which received level
salaries in the 2009-2010 year. He also said there would be significant changes in the healthcare co-pay structure for municipal employees.
“There are a number of issues we are tracking but on the brighter side there are a number of expenses that were appropriated in the 2009-2010 year, that were provided for the school department, that will provide considerable adjustments,” Alfred said.
He also explained there were charter school savings, transportation savings and workers compensation savings. He said these and other savings will help with the increases that will be necessary next year. He did say that if there was further erosion in the state aid support it would be very difficult to meet existing programs at the school or municipal level without increasing the levy.
“From the budget prospective we should be attempting to develop [a budget] with little if any levy increase from what the current year is. The first goal should be to minimize any impact on the levy,” Alfred said.
Finance Director Alan Lord discussed the healthcare statistics and financials and said a shortfall in healthcare from the school department should be offset by the savings in salaries. He said it looked like the projection was about $130,000 short on the healthcare account. He said it was still early in the year and it was fluctuating monthly.
Councilmen James O’Neill thanked the council and committee for holding the meeting. Although it was early he wanted to hear some opinions and get a feel for what was to come. Some of O’Neill’s concerns focused on state revenues coming in and the 2011-2012 year.
“I don’t see Rhode Island recovering and I see the spread of cost widened with revenues not at all keeping pace with expenditures, which will have to come back into place as well as the loss of the stimulus funds for
2011-2012,” O’Neill said.
O’Neill explained he would like the School Committee to prepare for the
possibility of curtailing some services as well as the municipal side. He
said this is going on across the state and it is very difficult but
necessary at times like this. |
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Last Updated ( Friday, 06 November 2009 )
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