Friday, April 18, 2008

A Message from Selectman Candidate Mike Demos

This message is not to be construed as an endorsement or lack thereof for any candidate by Around the Common.

Dear Citizens,

The numbers in Mr. Oliari’s 3 year plan sound like incredibly good news – total budget increases of $1M per year, with no need for cuts, layoffs or an override to make it all work.

The catch is that it starts one year in the future, and he does not address how we get from where we are today to his FY'10 number. It sounds too good to be true and unfortunately it is, but he’s hoping the voters won’t figure that out until after the election.

Let’s check the math to see if it holds up:

FY09 total budget recommendation = *$39.9M

*The FY'09 $39.9 million projected annual spending limit is based on $800K of one-time speculative revenue in addition to other questionable revenue sources for which continues to increase the bottom line only to lessen the perception of cuts.

FY'10 budget per Oliari plan = $40.0M

For this plan to work, total increase in expenditures year over year cannot exceed $100K. (including both town & school expenditures)

In the FY'09 budget are the following base costs:

1. Medical, health ins. & retirement costs:

Dept 914 – FY'09 = $2.503M

Dept 911 – FY'09 = $1.774M

School line item budget $11.937M for FY09 (5000 series line items)

Total Costs: $16.2M

On average has increased 7 to 12 % per year in recent years – using the conservative # of 7% - that would project a $1.1M increase for FY10.

2. SPED transportation = $1.766M (from FY09 school line item budget) – has been increasing at a double digit rate in recent years, but let’s assume a conservative 6% increase for FY10 – that would be $106k by itself.

3. Payroll costs across all depts for town & school:

Fiscal ’08 all 101’s = $8.248M (I don’t have the equivalent # in the FY09 budget recommendation)

School Salaries only- Student svcs = $1.1M (all school #’s per Joe Gillis’ slides presented to AB)

Admin= $800K

Instruction = $28.2M

Ops & maint=$2.2M

School total = $32.3M – Bwater share @63% = 20.3M

Total town wide = $28.5M (combines school & town)

2% of $28.5M = $570K

Just considering the costs above, we could conservatively project $1.7 to $1.8M in additional costs between FY09 & FY10.

How does Mr. Oliari plan to make up the difference between $1.7M & $100K WITHOUT cuts or layoffs – let’s see if he will answer that question between now and election day!

Sincerely,
Mike Demos
Board of Selectman Candidate

No comments:

Post a Comment