Board of Finance Crunches Numbers for Final Budget

Uncertainty over the expected revenues from the State of Connecticut prompted much discussion and consideration of various budget scenarios at the Windsor Locks Board of Finance meeting Tuesday evening. With the public hearing scheduled for April 19, 2011, the Board attempted to finalize its proposal for presentation to town residents.

At issue were the Manufacturing, Machinery, and Equipment (MME) Exemption reimbursement and the possibility of a loss of Educational Cost Sharing(ECS) funding due to State budget constraints. The Town expected a reimbursement of $2 million from the MME reimbursement, but has only received $1.5 million.

“For two years in a row they have cut us $500,000 that they said they were going to send us...we have mitigated $1 million in that last two years somehow,” Finance Director Barbara Bertrand said. She recommended a very conservative approach toward estimating revenue.

The figure of $700,000 was the anticipated possible shortfall in ECS from the State of Connecticut. The calculation was derived from the 14% Federal reimbursement thes state receives for its municipal education funding program. Superintendent of Schools Wayne Sweeney agreed with the need to be wary of ECS funding. Though CT Governor Dannell Malloy has promised the funds, budget negotiations and specifically the anticipated savings from union concessions may not be realized, leaving ECS in danger of being underfunded.

There was some consensus that a 1 point increase to the mill rate might be palatable to town residents considering the possible revenue shortfalls. Discussion ensued about using the town's reserve funds, currently at $7.6 million to offset possible gaps in revenue. Several members expressed reservations about using the fund balance in this way because of possible risk to the municipality's bond rating. Windsor Locks currently enjoys a AA1 bond rating, bringing a very low interest rate should the town wish to borrow money for future projects, officials said.

The board of education budget remained the final point of discussion. The current board of education budget proposal calls for a $691,000 increase over last year. The stated goal of the board of finance was to remain flat over the previous budget. Town expenditures excluding the schools have met that goal.

Under one possible budget scenario, with the proposed board of education budget fully funded, the tax rate would increase by 1.27 mills. The average taxpayer would see an increase of $146 over last year.

The board deferred on voting on the final budget proposal until tonight's meeting siting a need to digest the data before making the vote. The board wanted to make sure the board of education had an opportunity to make an appeal to the Board should they decide to cut the proposed increase in the school system's budget.

Board of Education Chairwoman Patricia King said, “wouldn't it be a shame that for the price of a pizza a month sacrifice per household to have to cut 15 people from the school and increase the class sizes that much.”

First Selectman Steven N. Wawruck Jr. appeared at the request of the board to present justification for the use of police officers for road work at the South Center St. construction project. Last week, police union president Sebastian Garofalo asked the board to look into having officers posted there, citing a number of safety concerns.

Because of the unique nature of the traffic and presence of heavy pedestrian usage, it was agreed that at various stages of the construction, police presence was necessary in the interest of public safety. Wawruck estimated the cost of the coverage between $100,000 - $125,000.

Action on the final budget proposal will take place at the 6 p.m. today  in the Ella Grasso Conference Room at .