Tri-Board predicts $2.15 million FY11 shortfall
Date: 12/7/2009
By Courtney Llewellyn
Reminder Assistant Editor
LONGMEADOW -- The town of Longmeadow has already used all its free cash and about $282,000 of the operational stabilization fund to balance the fiscal year 2010 (FY10) budget so far. The fiscal year ends June 30, 2010.
According to Finance Director Paul Pasterczyk, the outlook for FY11 and FY12 is a little more bleak.
At the Select Board, School Committee and Finance Committee tri-board meeting on Nov. 30, Pasterczyk and members of the three boards went over some tentative numbers for the upcoming fiscal years and hammered out some of their schedule for the upcoming months. The three boards are currently crafting the FY11 budget.
Pasterczyk is projecting a $2.15 million deficit in the town's approximate $50 million budget for FY11, with a similar deficit being predicted for FY12.
In budget planning, the town is considering catastrophic changes in aid. "A 15 percent reduction [in state aid] is the worst case scenario for FY11," Pasterczyk said. What makes a number like that even more severe is the fact the town will not be receiving any federal funding in the upcoming fiscal year.
Select Board Chair Robert Barkett asked if a Proposition 2 1/2 override would cover the deficit. Pasterczyk replied that it would in FY11 and that the average household would see an increase of $350 a year in taxes.
Richard Liasse, a member of the Finance Committee, noted that an override would be needed for the new high school project.
"You get one or you get the other," he said. "I doubt we'll get both."
"When we passed the last override [in 2007] we realized there was a structural issue with the town's finances," School Committee Chair Mary Vogel stated. "We need to address that, not just the current economy."
Over the next few months, the tri-board will try to address that issue. Following is the calendar adopted at last Monday's meeting. The meeting calendar is subject to change:
Jan. 31, 2010: Governor submits budget to House -- proposed local aid numbers out.
Feb. 1, 2010: Non-school departmental budgets due in to Town Manager; quarterly update of FY10 revenue/expenditure budget projections by Finance Director and School Business Manager; update FY11 revenue estimates based on governor's budget; review governor's budget and impact.
Feb. 10 or 24, 2010: Budget forum
Feb. 11, 2010: School Department budget due in to Town Manager (per charter, budget due to Town Manager Feb. 25)
Feb 26, 2010: Town Manager proposed FY11 budget to Select Board (bylaw deadline 60 days before Annual Town Meeting -- March 12) and to Finance Committee (bylaw deadline April 9)
March 1, 2010: Budget presentation
March 8, 2010: Budget deliberation (special board meeting)
March 10, 2010: Budget forum
March 22, 2010: Select Board adopts FY11 budget (March 22 special board meeting)
March 23, 2010: Adopted budget goes to Finance Committee (at least 30 days before Annual Town Meeting April 9)
March 31, 2010: Last day for Finance Committee to submit warrant and budget recommendations for publication.
April 2, 2010: Draft warrant and budget to printer
April 6, 2010: Final budget and warrant to printer
April 26, 2010: Distribution of warrant and budget to residents required by charter
May 11, 2010: Annual Town Meeting.
