As we move into the new year and look towards a new beginning, yet see the same thoughts being recycled and the same problems continuing—whether it’s on the local, state, national or international level—one wonders about the lack of common sense and practical solutions. It seems that John Galsworthy’s quote may be on target as we look at some of the suggestions put forth by politicians at all levels, “Idealism increases in direct proportion to one’s distance from the problem.”
With that thought in mind, a quick update on the FY’16 budget (for the fiscal year that’s now half over). Just before the holiday vacation, DESE informed the district and towns that they have now set this year’s budget. Having heard from the district and its member towns, the DESE set the budget 0.25% lower than the 1/12th budget, a reduction of approximately $44,000, certainly a level much higher than the towns desired and lower than what the district requested, hence taking the middle road in this budgetary quagmire.
In addition, after being told of the work being done by both the district (Gateway 2025) and the district and towns (GTAC’s Sustainability Committee), DESE required that Gateway also set aside up to $30,000 to engage a consultant to “provide financial and administrative recommendations to support the district’s efforts to institute cost-saving measures”, another mandate that requires additional reductions in the existing budget to provide local funding for this activity.
I’m hopeful that these budgetary changes can be absorbed without any substantial impacts on operations or on next year’s budget process, including the use of E&D funds to offset next year’s town assessments. I also think that a consultant is a good idea and may prove beneficial in providing an outsider’s view on our budgeting process, town and district operations, and how the district is adapting to the new reality of having only six towns. It’s unfortunate that this comes as an unfunded mandate for the district and its towns. GTAC has also discussed an outside ‘facilitator’ but to date has found no money to hire someone to help manage its work.
We’ve also corrected some local misperceptions regarding the ongoing fiscal and district operations as we work with DESE. We were asked by a local reporter if “DESE staff had arrived to take over the district” as was reported at a local town meeting. We explained that DESE doesn’t ‘come in and take over’ district operations; rather they provide approval of certain fiscal activities (i.e., the transfer of money between line items, encumbrance of funds not in the budget, borrowing, execution of new or amended collective bargaining agreements, new contracts or amendments to contracts in excess of $25,000, and changing user fees). This is a collaborative effort between DESE and the district that essentially takes over these operations from the school committee but leaves the daily operation of the district unchanged. We also had a question from one town official asking whether all administrative contracts would now have to be reviewed by DESE; the answer was no, all contracts previously approved prior to DESE setting the budget were valid and ongoing.
While we will keep the school committee and towns apprised of budgetary issues for the current year, the reality is that DESE now has the authority to make those decisions rather than our locally elected officials. However, the school committee will be working on next year’s budget. As soon as this fiscal year ends, or upon approval of the FY’17 budget, the school committee will regain fiscal control of the district. Let’s hope that the FY’17 budget process returns to normal and we can gain town approval of a budget this spring rather than draw out the process into January of 2017.
