Charter Cmte. Reviews FINCOM Proposal for New Budget Process [with video]
On Wednesday Oct. 14, the Charter Review Committee began reviewing and probing a group of suggestions related to reforming the town's budgeting process. Broadly, there was a remarkable degree of consistency across many of these suggestions. A common thread among many suggestions is that Selectmen, Town Manager and the Finance Committee should take responsibility for setting town spending goals and priorities very early in the budgeting process.
The corollary view in some of these suggestions was that Selectmen and Finance Committee should confirm and monitor budget goals to ensure spending targets are met. Other suggestions proposed controlling other non-budget spending initiatives such as Capital spending and out-of-cycle salary raises and possible additions of new positions in town government to be sure they remained within budget spending limits.
The Charter Review Committee spent almost half an hour reviewing the Fincom's suggestion, presented by Bud Robertson who is a Finance Committee member as well as a member of the Charter Review Committee. The Finance Committee's suggestion proposed first that, "The Board of Selectmen, the Town Manager, Finance team and the Finance Committee shall meet prior to the start of the budget cycle to determine budgetary goals." And second, "When the budget is completed, it must comply with the budgetary goals set forth at the start of the budget cycle."
Robertson said that changes to the Charter being proposed by the FinCom are already being implemented by written policy agreement with Selectmen and that a first meeting has already taken place. Still, he said, the FinCom believes that these procedural changes are so important that they should be established in the Charter and not just be described at the policy level.
Without elaboration, Robertson said that FinCom's lack of involvement in earlier budget cycles, "was an issue." He went on to explain how the new process would work. First Selectmen, The Town Manager, The Finance Team and the FinCom would meet to discuss priorities and budget goals he said. "By starting very early in the budget cycle, it will be possible to fairly consider the competing demands of many important functions in town including the schools, public safety, protection of persons, public works, the Library, and administrative functions," he added.
Looking for more specific understanding of how the process would work, Review Committee Chairman Mike Manugian asked Robertson, "When you say 'goals' and 'priorities', are you talking about general spending goals or specific dollar figures and percentage increases?"
Robertson explained, that he FinCom and Selectmen would set hard dollar figures. Manugian probed further asking, "When you set your goals, do you set one goal for the overall budget or do you set a school goal and a non-school goal?"
Robertson said that the goal for municipal spending would be set after the FinCom, Selectmen, Town Manager and Finance Team had completely reviewed and discussed the school's spending requests and agreed on a dollar number for the schools in conjunction with municipal spending requirements.
He explained that the Town Manager's funding for municipal spending will be based on the remaining balance after the school number has been determined and "we agree on it as a team." He said that the municipal portion of the budget will be "decided after the school's funding is determined."
He added that this early in the process, the school budget number is just an estimate based on a reasonable approximation of last year's request, just as future municipal spending can only be an estimate of spending commitments and trends. But he said that the school's budget request "should be available prior to the start of the budget process." Once Selectmen, The Town Manager, The Finance Team and the FinCom consider, adjust if necessary, and approve the school's funding request, the balance of available funding will fund the town budget, he explained.
Chairman Manugian said, "It sounds like you're just going to accept the school's budget, whatever they propose. Robertson replied, "No, we won't just accept it. We'll listen to why they need the money. Then the question becomes, is it in the realm of what the town can afford? There's only so much the town can afford and there are many competing needs we need to consider."
Manugian questioned further saying, "You haven't talked about any give and take with the school budget." Robertson explained that when the school committee comes forward with a funding request, the FinCom will discuss that request. He said, "The funding they request is the starting point of the conversation with the FinCom." He added that Dunstable will have to be considered too.
Robertson said, "It's important to understand that the Town budget has to prioritize spending across many very important functions including the schools, public safety, protection of persons, Public Works, the Library, and administrative functions. But, by starting the process early, by working together, we can make better recommendations. Ultimately, its up to Town Meeting to decide where the funding goes, not up to the FinCom."
The Charter Review Committee's discussion and vetting of the Finance Committee's Charter suggestion extended well beyond the time normally allowed for discussing a single submission. But the extended discussion seemed to make sense because the FinCom's core suggestion addressed the principal concerns of many similar suggestions, the concern that the electorate should have a much greater voice in setting the main financial goals and priorities of the town budget.
After completing review of the FinCom suggestion, the Charter Committee moved onto other similar suggestions. The review process is only the first step in considering a suggestion for inclusion in the Charter.
Next, these and other similar suggestions will be discussed and voted whether to approve, deny or to further study each suggestion. As each of these suggestions is discussed and voted on by the Charter Review Committee, there is opportunity for public comment.
