Wednesday, November 3, 2010

Live reporting - Budget 2012

2012 Budget Discussion
Signed a contract with KBA for about 500,000, down $300,000 from prior offer
Project manager contract signed, total of two contracts was 800,000 was budgeted at 1 M so they are well within. The MSBA will reimburse 50% of this amount
watching the dolars right out of the gate, on scheduled for bringing a total cost for the decision on renovation sometime late next year

Reduced 1 out of 6 municipal jobs over the past several years
despite that, we still provide quality municipal services
CPI is 2.9, wage increases at 2.25 percent well less than the cost of living

cost of health care is beating the bench mark every year.

people tend to complain about municipal pensions, overhaul started but it will take time
Legislature will try to make that more affordable overtime

getting pretty good bang for the buck

FY 2011 7 of 9 unions have reached an agreement with no pay raises
Firefighters still being worked
(missing contract on the Town side, trades union)

very conservative capital program, save some for snow and ice and for unemployment
no-high school building repairs and continue the sewer water repairs

There is a gap between revenues available and services being provided
consolidated services within Town and with other towns

Lost about $3.8 million dollars in state aid
at risk for cuts in additional state aid under the tight state budget problem

Schools have balanced with additional stimulus funding, that is one time money

If you look at the fixed costs that will go up, look at the one time dollars that have helped us
there will be a shortage
there will need to be policy decisions, a million dollars is 20 jobs
the vast majority of money goes to wages and benefits
We have a big challenge ahead
we will do our best to serve the citizens with what is available

We will have a real number in early February

Pfeffer - what unions haven't settled?
Nutting - There are five unions on the Schools side, one has settled, the others are in process

Whalen -
Nutting - if the state aid doesn't get cut, the deficit will be about 4 million
Special education is always exposed and those costs are going up, the Schools are short 2.5
Excise tax receipts are still down, local receipts based upon economy
the big number is how much is the state aid going to get cut

Whalen - it is reasonable to expect a cut
Nutting - I have talked with a lot of folks and it is uncertain

Whalen - is there any reason why they can't approach the teachers union with the same approach
Nutting - the School Committee negotiates in good faith

Jones -  with worst case, 6 million, how many jobs are we looking at?
Nutting - on an average, 20 jobs per million, 100 jobs for 5 million, which means we pay unemployment
in a good spot, people can get hired elsewhere, but in this economy they likely won't so we'll be paying unemployment

Nutting - recall too, that the Schools do not renew every teacher every year, so that complicates the overall number

Zollo - best case, a 4 million number, worse could scale up from their
somewhere between 80-120 people across the Town and Schools

Unemployment, about 20,000 per person, unless they extend it again
we have some money already, we wouldn't need it all at once

Free cash, 2.5 million, most of it will be taken up by snow and ice and unemployment

Zollo - if the voters don't want to support override, every one is going to have to suffer across the board

Kelly - Town about 250, Schools - don't quote me on the numbers

Vallee - how much do we pay for the debt on our buildings?
Nutting - about 3 million, our target is 3.5% and we are under that

Whalen - I'd like to marry Vallee's and Zollo's comments, I don;t have the numbers in front of me. if you broke it down to the monthly tax bill, it was peanuts like $5
we don't spend a lot of money across the board, given that mountain of evidence we still have citizens who refuse to pay any money of pocket to preserve our Town
unfortunately, it going to be spread deeply and evenly

Franklin, MA

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