Gov Patrick, Salem, and Franklin's situation

Governor Patrick, cutbacks and the saga in Salem

As the city of Salem roils over layout notices, and other towns struggle with tight budgets, Gov. Deval Patrick told municipal leaders Friday that he feels their pain. Patrick said he understands that they are experiencing tight fiscal times.

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Click through to read the details in this Override Central story in the Boston Globe.

Franklin is not that far away from Salem in this case. Financial mismanagement created their shortfall. The Forensic Report was presented Wednesday night to the joint Town Council and School Committee, as I re-read the report and listen to the presentation again, I am not convinced that we are out of the woods on this episode.

"The deficits in 2006 and 2007 raise concerns over the School Department's level of spending in fiscal 2008. There will be more Circuit Breaker available in 2008 than in 2007, as there is no carry over deficit to be applied to the 2008 expected receipts. However, there was a deficit in Special Education Tuitions even with the full Circuit Breaker receipts for both fiscal 2006 and 2007.
In addition, certain other accounts have been in deficit during both fiscal 2006 and 2007. We have prepared the three-year budget analysis, and provided a copy to the interim Director of Financial Operations. That analysis will assist in identification of potential budget shortfalls. However, the schedule is prepared based upon the inclusion of negative revenue items, which needs to be taken into consideration in evaluating the 2008 budget."

From the Forensic Report, page 10. Bold for my emphasis.

Mr Sullivan - Part 4 (audio)

Mr Sullivan discusses the accounting for the Medicaid reimbursement which even after the transfer of some expenses to other accounts still has a deficit. He summarizes the total deficit as

Attrition impact - $200,000
Medicaid double posting - $300,000
Athletics revenue deficit - $150,000
Insurance deficit - $195,000
Tuition deficit - $671,898
Total - $1,516,898

Appropriation surplus - ($662,296)

Final deficit - $854,602


This section includes questions and comments with Bartlett, Feeley, Nutting, and Susan Gagner - Town Comptroller.

Time: 6 minutes, 15 seconds



MP3 File

Mr Sullivan - Part 3 (audio)

Mr Sullivan reviews the details of accounting for attrition. Attrition is expected. School departments can take advantage of it. Franklin had used anticipated savings in attrition to help prepare the budget up until Fiscal 2008.

This portion includes Q&A with Councilors Whalen, Feeley, McGann, Pfeffer, Doak, and School Committee Chairperson Jeff Roy.

Time: 9 minutes, 36 seconds



MP3 File

Joint Town Council/School Committee Meeting Summary - 1/9/08

The opening remarks by the Attorney (audio) Mary Joann Reedy

Mr John J Sullivan, CPA explains the findings - part 1 (audio) (initial deficit and circuit breaker accounting)

Mr John J Sullivan, CPA explains the findings - part 2 (audio) (using negative line items)

First set of questions for Mr Sullivan (audio)

Mr John J Sullivan, CPA explains the findings - part 3 (audio) (accounting for attrition)

Mr John J Sullivan, CPA explains the findings - part 4 (audio) (Medicaid reimbursement)

Mr John J Sullivan, CPA explains the findings - part 5 (audio) (covering the deficit)

Mr John J Sullivan, CPA explains the findings - part 6 (audio) (more questions on the deficit)

Mr John J Sullivan, CPA explains the findings - part 7 (audio) (last questions on deficit, Falvey tries to speak for the first time)

Mr John J Sullivan gets to the recommendation section of the report, first: hire the right skill set (audio)

Mr John J Sullivan gets to the recommendation section of the report, second: School Committee approves budget transfers (audio)

Mr John J Sullivan gets to the recommendation section of the report, third: Concerns over 2008 budget (audio)

Mr John J Sullivan gets to the recommendation section of the report, final: multiple items (audio)

After the recommendations there is a series of Q&A sessions

Q&A 1 - Whalen, Pfeffer (audio)
Q&A 2 - Zollo (audio)
Q&A 3 - Jeff Roy (audio)
Q&A 4 - McGann (audio)
Q&A 5 - Doak (audio)
Q&A 6 - Cafasso (audio)
Q&A 7 - Bartlett (audio)
Q&A 8 - Gagner, Feeley (audio)
Q&A 9 - Frank Falvey (audio)

meeting took a break for 2 minutes, the School Committee left, the meeting resumed with the normal Town Council agenda

Tax & Title properties (audio)

Four Corners RFP (audio)

Three items: Exemption for police to be FHS coaches, snow budget almost expended, Fire station will be ready early but doesn't have budget to do so (audio)

Old & New Business (audio)

Councilor closing comments (audio)

The full audit report is available on the Franklin Schools page (left menu item) or via this link (PDF). Note, the PDF file is quite large, it may be slow opening depending upon your connection.


This completes the recordings for the meeting 1/9/2008

In the News - Molasses, twin violins, financial fiasco

Franklin Library looks to get town On the Same Page

By Michael Morton/Staff writer

At first, library staff worried that an initiative to get all residents to read the same book on a sugarcane product would prove slower than molasses.

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Music in double time

By Heather McCarron/Staff writer

Sasha and Sally Gorski share a lot in common, not the least of which is a passion for music. And every day, they get double the pleasure out of pursuing it.

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Franklin financial fiasco prompts more criticism

By By Michael Morton, DAILY NEWS STAFF

FRANKLIN - With the inquiry into a $580,000 budget gap over, school officials say they are moving forward by instituting new oversight controls and seeking a finance director to replace the recently fired Delores McCoy.

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First Set of Questions (audio)

Mr Sullivan pauses to answer several questions from Councilors Doak, Bartlett, Zollo, Pfeffer, and Feeley.

Time: 8 minutes, 33 seconds



MP3 File

Mr Sullivan: Explains the problem - Part 2 (audio)

Mr Sullivan continues his detailed explanation of the findings covering the negative line items in the budget up to the June 2007 report without a cover letter.

Time: 8 minutes, 25 seconds



MP3 File