Use this search box to find articles that have run in our newspapers over the last several years.
Date: 1/25/2023
LUDLOW – The Finance Committee met with the Board of Selectmen on Jan.17 to discuss the level two budget.
“The town budget would increase by 4 percent which is the same increase as last year,” Town Administrator Marc Strange said.
Strange said that Town Accountant Kim Collins, Humans Resources Director Carrie Riberio and himself met with each department to go over each line of their budgets.
Level one and level two budgets are part of a process for developing the final budget.
Strange said, “The level one budget is the total amount of funding requested by all departments. We receive budget requests from all departments and that gives us a total for each department. We then meet with each department individually to review their budgets line by line to understand why their FY24 level one request changed from FY23 levels, after we’ve met with all departments and reviewed their budgets, we put together a level two budget, which includes line item adjustments.”
“We wanted to figure out where our expenditures have been in each individual line item not only for this year but the previous three years. It was super helpful to see how the departments were operating,” Strange added.
Strange said that after level one the budget was about $2.4 million over budget but Strange added, “That does include sufficient funding for the schools to overcome their ESSER fund deficit which is about $1.4 million.”
Elementary and Secondary School Emergency Relief (ESSER) are funds that the schools received to help during COVID-19 and all the funding is running out this year.
The budget for the schools will see a 3 percent increase but the Board of Selectmen and Strange had some concerns if they need a larger increase to their budget.
Strange said, “I believe they have 29 full-time equivalent employees funded by ESSER so I don’t know how they are going to get through that. Hopefully they can get through that without us increasing our 3 percent because that changes the game.”
Superintendent Frank Tiano originally requested a 7 percent increase to the school budget to help with the ESSER deficit but has been working to decrease the budget request according to Strange.
Selectman Derek DeBarge asked what happens if the school department can not find a solution and needs the 7 percent increase that they requested.
Collins replied, “The only way to fund your budget above the levy would be to use free cash. The issue remains that if you use free cash to reduce your tax rate. That is the reason we use free cash to fund capital investments and one-time investments because if you continue to subsidize your budget, there will be a bigger issue next year.”
Collins added that the best way would be budget cuts or layoffs to help with the budget for the schools but Strange said they will look at other ways to accumulate more money from other line items if the time comes.
Selectman Bill Rosenblum said, “A 7 percent increase is a huge ask.”
Board of Selectmen Chair Tony Goncalves shared why the school department budget can affect the overall budget.
Goncalves said, “Of the $82 million budget, the school is accounted for $37 million of that. Forty-five percent of the towns budget goes to the schools already, so a 2 percent increase is basically equivalent to a one percent increase across the board.”
Tiano will be presenting the school budget at the School Committee meeting on Feb. 14.
Strange added the Board of Selectmen will be meeting with the School Committee on Feb. 28 to discuss their budget.
After going through each line item, Strange said that the town was about $1 million over the budget but were able to bring that to approximately $162,000.
Strange also said that there are other factors that can change what the budget may be ahead of Town Meeting.
“There still is some uncertainty with respect to increases in our retirement assessment, increases to health insurance and other related tax related items. We are also looking to combine the treasurer and collector positions to free up some money,” Strange added.
The town was also able to reduce department budgets like town counsel and information technology.
Strange added that the methods used to decrease those budgets does not have a huge impact on how those departments will run and even added, “We feel our services has increased.”
Collins said the next step is sending the level two report to the Finance Committee who will meet with certain departments to go over their line items.
The Finance Committee will then come up with a level three budget to present.
Goncalves thanked Collins and the Finance Committee. He said, “It is nice to be to be at this point in the process and be so far ahead compared to the last few years.”