Let The Budget Season Begin

The town's budget workshops start Wednesday at 12:30 p.m. in . Here is some information about preliminary budgets that have been proposed to the town and to the town's Board of Education. Posted with this article are excerpts from the presentation to the Board of Education budget, along with the current schedule of workshops. Anyone in town is welcome to attend.

Town Budget:

The first draft of the town of Madison's total requested budget calls for a 3.22 percent increase, or $657,453, to $21,099,434. That includes a request of $15,773,575 for the operational budget, private school transporation, and health services; a request of $3,577,234 for reserve funds that go towards health insurance, employee benefits, capital projects, the capial maintenance fund, and planned and cycled maintenance; and a request of $1,748,625 for debt service interest and princiapl.

First Selectman Fillmore McPherson, when asking for employees to submit their budgets, asked that they submit any additions to their budgets separately. So the first drafts of the budgets as submitted reflect existing programs and operations.

McPherson said the town currently anticipates a large increase in the costs of its self-funded health insurance. The first draft of the budget calls for an 11.59 percent increase in this line, to $1.5 million from $1.34 million. "We are still reviewing that," he said. "We are hopeful we will be able to make some favorable changes to that as we get further in to the year. But we start each year with certain assumptions and we prefer to be conservative in those assumptions."

There also is an increase of 31.7 percent in interest on debt service for projects that include the Griswold property, and the new ambulance and senior centers. The town anticipates having to pay $596,625 in interest this year, or $143,644 more than last year's payment amount of $452,981.

Police Budget:

At a recent Police Commisson meeting, Madison Police Chief Jack Drumm submitted a proposed budget request for 2012-2013 of $2,811,535.68, which is $13,920.18 less than the 2011-2012 approved budget of $2,825,455.86. A notation on the proposed budget request says "gas services, water and electricity deleted from all budget years due to reallocation of expenses to facilities budget." The proposed budget request also says wages of $1.79 million, an increase from the 2011-2012 amount of $1.77 million, "represents increases in contractual steps and contractual longevity payments (funding to come from HR line)."

The police department also plans to cut back the hours of its IT manager, contributing to a decrease in office staff costs of about $28,984. The department is seeking increases of about $3,000 for officer's training.

Drumm also told the commissioners that the overtime lines relating to investigations do not reflect money that might be needed if there are crimes that require expensive investigations. "Instead of putting that money in the budget, we will go to the Board of Finance for special appropriations as needed," he said.

Police Commission Chairman Eric Thornburg said it appeared that the big factors contributing to the level budget was that the increases in labor costs will be reflected in the town's human's resource budget, and the reduction in the hours for the IT manager. Commissioner Thomas Cartledge said he liked the idea that extraordinary expenses relating to investigations would be requested as needed, rather than built in to the budget.

"When it comes to investigating crime, there is no magic number for any particular incident," he said. "It also shows the willingness of the police department and the police commission to work with the selectmen and the Board of Finance. It is a fabulous approach."

Thornburg said he questioned whether it might make sense to budget for at least some of the anticipated costs of investigations, but Selectman Al Goldberg, the Board of Selectmen's liason to the Police Commission, said during the meeting that it appeared to be a sensible approach.

"Just be crystal clear about that point" when presenting the budget, he said. "Let them know you are not budgeting in that reserve, and that if something terrible happens, you'll be coming back."

Goldberg also asked Drumm whether he felt the department was currently "right sized" at 28 officers. Drumm said it was. "We made a promise we'd stop at 28 and unless we get a new Walmart in town, or another huge hotel, we're good with that," he said.

Goldberg also recommended to Drumm that he reiterated the department's recent history when presenting the budget. The department, before Drumm's arrival, was known for a variety of problems, transgressions, and the high legal bills that come with those.

Cartledge agreed.

"We have cops who are proud to be a part of the Madison Police Department," he said. He added that members of the Madison Property Owner's Association, several of whom attended the commissioner's meeting, praised both the budget and the police department, and that department is working effectively with the town. "I haven't heard a lobster joke in over a year," said Cartledge, referring to an incident where a Madison police officer was caught on videotape stealing lobsters from a local restaurant.

Thornberg agreed and said he looked forward to further improvements in the department. He handed out monograph copies of excerpts from the book From Good to Great by author Jim Collins, to Drumm and other members of the commission, recommending that they read it for ideas on how to further improve the police department.

School Budget:

The school administration, led by interim School Superintendent Anita Rutlin, has submitted a request to the Board of Education for a total comprehensive budget of $50,938,827 for the 2012-2013 school year, an increase of 1.31 percent, or $659,769, over last year's approved budget of $50,279,059.

This includes a total operational budget of $42,106,422, which is an increase of 0.98 percent, or $407,863, over last year's approved operational budget of $41,698,559. Accounts jointly managed with the town (which includes maintenance, health insurance, debt interest and principal) have increased 2.94 percent  or $251,905 to $8,832,405 from $8,580,499.

The board reviewed expenditures from past years, along with year-to-date expenditures "to determine if there are any opportunities for reallocation or reduction of funding within the existing budget." Goals included:

• Adhering to Board of Education Class Size Policy
• Maintaining needed staffing levels at the middle schools and high school to provide the current educational program to students
• Reducing elementary school staffing profiles as appropriate and in accordance with enrollment projections and class size policy
• Refining and improving current educational programs (Academic / Co-curricular / Extracurricular)
• Aligning current Core Allocation funding levels for students based on projected Pre-K – 12 enrollment
• Allocating professional development funds by school based upon actual spending data
• Maintaining current athletic programs, i.e., no new program implementation or program expansion / reclassification
•  Ensuring financial predictability by pre-purchasing utilities / commodities (natural gas, electricity, heating fuel, diesel fuel, etc.)
• Participatinh in regional and state purchasing consortiums to ensure fiscal efficiencies
• Continuing financial collaborations and efficiencies with the Town of Madison

Factors that contributed to an increase of only 1.31 percent were:

• Reduction in Certified and Classified Staff Based on Decreased Student Enrollment
• Reduction in Enrollment-Based Core Allocations (instructional supplies / materials, printing and binding)
• Reduction in Early Retirement / Severance
• Administrator Contract Negotiation by the Association of Madison Administrators (AMA) and the Board of Education
• Favorable renewal rates in the Health Insurance / Self Funding Line Item coupled with changes in employee benefit program achieved through contract negotiations

"We have presented a prudent budget that maintains our programs," Rutlin said. One of the biggest factors that came into play this year, as last year, was declining enrollments which allowed for staff reductions without cutting into programs. The administration is proposing eliminating 15 positions. Last year, for the same reason, declining enrollments, 13 positions were eliminated.

"One of the most obvious things going on here is the declining enrollment," Rutlin said. "That is why we have a reduction in force [proposed]. This is not just a way to save money, it is due to declining enrollment."

By way of example, Rutlin said, last year's graduating class  from Daniel Hand High School was 306. "This fall we welcomed [a kindergarten class] of 143." Next year's kindergarten class is projected to be 108.

Rutlin said the school and town administration carefully tracks a wide variety of factors, including births and real estate transactions. She said the significant drop in the student population is due to a variety of factors, including the bad economy. "Should the economy turn around, that will change the birth rate, and people's desire to buy homes in Madison," she said.

At the same time, the school administration sought to introduce a budget that maintains academic programs, along with co-curricular and extra-curricular programs, she said.

"We are maintaining excellent class sizes, we are refining and improving our educational programs, and we are maintaining our current athletic program," she said.

The school budget benefited from the fact that the schools share decision making on several accounts, and purchasing, with the town, she said. "It's because we share that we can come in this low," she said.

And, once again this year, the school administration is anticipating that the state will not fully fund special education excess cost reiumbursement. "If that were fully funded, there would hardly be an increase," Rutlin said. "Unfortunately, we have to pass that increase on to the community. Still, these children need these programs, so we, the people in the community, are taking care of these children."