The Town Council has two special meetings this week for the annual budget hearing on the FY 2013 budget.
Franklin operates on a fiscal calendar from July 1 to June 30 of the following year. The FY 2012 budget approved last year funded operations through June 30, 2012. The budget hearings on Weds/Thu will look at funding operations for the period from July 1 through June 30, 2013.
The budget cycle generally begins in Sep/Oct as each department puts together their capital budget. The capital budget is funded by 'free cash'. Free cash is the amount of money left over from the prior budget year that the State has certified is really available. It is a one time fund and not used for operational expenses (personnel, salaries and benefits). It is used to fulfill the capital requirements (new equipment, school books, vehicles, etc.).
As the capital needs are reviewed, each department also puts together their operational requirements. These are reviewed by the Town Administrator and then brought before the Finance Committee. The Finance Committee holds a set of budget hearings where each department manager presents their case for the next year budget, explains their operations, their funding priorities and answers any questions.
The Finance Committee (FinCom) budget hearings were held in April and ended with the FinCom voting on the budget to forward it to the Town Council. This is the budget the Council will be reviewing.
The voting document shows multiple columns. The last two years total for each line item. The original total for this year as put forward by the department. The recommendation by the Town Administrator (TA). This year, the TA only changed one line item (510 - Health) reducing the amount by $1,500. On the one hand, you can attribute only one change to close coordination between the TA and the department head. In this case, the Board of Health apparently submitted a request to create a salary or stipend for what has been a volunteer or unpaid position.
The expense side of the budget generally gets the most focus but the revenue side of the budget is equally important. Franklin is required to present a balanced budget. Where the money comes from is as interesting as how it is spent. For example, this year $350,000 that was taken away from the School budget in Oct 2011 is being put back into the budget for next year. The vote to approve that transfer is part of the overall budget process decisions coming up Weds and Thu nights.
The budget documents
Expense budget FY 2013
Revenue budget FY 2013
FinCom hearings
http://www.franklinmatters.org/2012/04/finance-committee-budget-hearing-fy.html
Hearing schedule for FinCom
http://www.franklinmatters.org/2012/04/fincom-fy-2013-budget-hearings.html
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