Groton's Burning Question Of The Week: Should The Town Present a Budget With A Zero Tax Increase?
Groton's proposed budget for the coming fiscal year is due to the Town Council by March 15. How far should it go to cut expenses?
Groton's budget for the coming fiscal year will be presented shortly, and members of Representative Town Meeting have asked about a spending plan with a zero tax increase.
Finance Director Sal Pandolfo said last week it would be impossible to achieve a zero tax increase for everyone, because Groton went through evaluation this year and property values changed.
Some went up while others fell. Overall, the town saw a decline of about 3.6 percent in values.
Pandolfo said if the goal was no tax increase for everyone, even for those who saw values rise, Groton would end up with $7.65 million less in revenue than this year.
What do you think? How far should the town go to cut spending?
Ralph Little
7:01 am on Sunday, February 12, 2012
I think this is a case of semantics. The school budget is frozen. I expect the Town's other expenses to remain relatively fixed. Thus, it will not take more tax revenue to provide those services. It will require a higher mill rate against lower property values to achieve those revenues. To generate the same revenues, the mill rate will go up, but one's actual tax bill should not go up.
augie42
8:57 am on Sunday, February 12, 2012
Ralph makes a lot of sense. With the re-evaluation, most property values went down. Raising the mill rate to produce last years revenues is inevitable. What questions remain are: How much state and federal aide are we getting compared to last year? What Capital and Bond projects are we adding? And the most important, What do we really need, and what can we live without.
Jennifer Sim
9:51 am on Sunday, February 12, 2012
If the largest portion of the town budget is at zero, then why can't the town deliver the same outcome? I usually don't favor zero budgets because they short side long term needs and often cost us more in the long run. From an argument standpoint, I think it will be very hypocritical of the town not to deliver a zero budget when they have been screaming at the school board to. All the reasons why increases were needed for the school budgets were never accepted so why should the reasons from the town be.accepted. Do we really believe there is absolutely zero waste in the town's operating budget? Do we really believe that we are managing our resources in the most creative and efficient way possible? I would like to see a zero percent increase without any layoffs. If the school board can do it, so can the town.
William C johnson
1:25 pm on Sunday, February 12, 2012
Just for clarification, and I am being very general here. The question that was asked to the Finance Director was, what would it take to insure no one would receive a tax increase? Yes the mill rate will adjust, but some properties did increase in value, and when the mill rate adjusts they will see an automatic increase in taxes. The answer was the Town would have to cut 7.5 million from the operating budget. It would mean a decrease in taxes for all residents, and level taxes for one person. To your point Jenn The actual operating budget for the Town of Groton has decreased over the past 2 years. That does not tell the whole story though, there are many other factors, shrinking grand list, less revenue from outside sources to name a few. The BOE has guaranteed funding levels so they don't make cuts when the grand list shrinks. Also to your point the BOE has had a zero dollar increase over the past 2 years, but that doesn't tell the whole story either. For example, they have asked the Town for 1.4 million to renovate the middle schools for consolidation. that money does not come out of their budget. That money is in addition to the zero dollar increase they are requesting next year. If that request passes the Town operating budget would need to decrease by 9 million to keep a zero dollar tax increase for all. The point of the conversation is that a zero dollar spending budget still means that some residents will have a tax increase.
Jennifer Sim
7:01 pm on Sunday, February 12, 2012
Bill,
Naturally it is more complicated. But, these blogs rarely provide opportunity or room for the entire story. I am simply stating that I do think the Town can submit a zero percent. I don't expect taxes not to increase. These revenues should pay for specific services such as schooling. The revenue is shrinking but so is the population. So, the service need declines. I just want us to all play by the same rules. Lately there seems to be this belief that the BOE is taking all of the towns money needlessly. I am certain that is not your point of view. Just as I am certain every department in the Town, not just the BOE, can find more efficient operating practices. I have faith in the professionals that run this town. If the BOE can do this on such a large budget, I am sure the Town can find a way too.
Rosanne Kotowski
1:38 pm on Sunday, February 12, 2012
YES
Where to begin.
The Board of Education Budget is at zero. Really?
According to recent reports the BOE is coming at us with a $1.3 supplemental appropriation.
That is NOT a zero increase to the budget.
Also the Board of Education capital improvement wish list is for tens of millions of dollars including:
A) School Design $75,000
B) Asbestos removal $2,495,000
C) Fitch High School replace most of the older section of the school $4,156,000
D) Cutler Middle School 9 items on this list for $6,750,000
E) West Side Middle School 6 items on this list for $5,792,000
F) Was for Fitch Middle School
G) Charles Barnum 8 items for $4,280,000
H) Claude Chester 10 items for $7,317,000
I) Catherine Kolnaski security cameras, $127,000
J) Mary Morrison 9 items for $4,826,000
K) Northeast Academy, security cameras $84,000
L) Pleasant Valley School 9 items for a total of $5,371,000
M) Butler School 11 items for $5,722,000
and last but not least
N) The ADMINISTRATION Building WHAT?!?! 7 items for a total of READY FOR THIS? $2,259,000.
OK, now where exactly is the Board of Education saving the taxpayers any money?
Now on the Town side we are continually being told that outside revenues have been on the decline for years.
However the Town spending has not "shrunk" accordingly.
How has the Town reacted? To raise taxes, year after year.
The Town certainly has not responded to declining revenues in a fiscally responsible way and the taxpayers are "taxed out".
Jennifer Sim
6:57 pm on Sunday, February 12, 2012
Rosanne,
When was the last time asbestos removal was a "wish list" item??? Again..to be clear, the buildings and their structure are the Town's ownership. Just because the BOE reports what those buildings need does not mean they are spending that money. The Town Council and the RTM decide what doesn't get done and what does in the capital expenditure list.
C.J.Boa
3:01 pm on Sunday, February 12, 2012
Complain when the town dosen't spend money on school maintenance - Complain when the town spends money on school maintenance. Some times you can't win.
augie42
7:29 pm on Sunday, February 12, 2012
Jen,
If you took the time to look at the BOE CIP list, you would see that it is just that, a wish list. Some of the stuff on it is extravagent and unecessary.....kinda like phase II. Most asbestos is only an issue if it becomes disturbed. Its called non-friable.
augie42
7:31 pm on Sunday, February 12, 2012
Mr. Johson is wrong about the town budget. It went up 0.5% last year.
William C johnson
9:33 pm on Sunday, February 12, 2012
Let's make sure we are talking about the same thing. I said the Town Operations Budget has gone down the past 2 years, but there are many other factors that go into the budget, and yes there was an overall $600,000 increase last year. Half of that increase was a direct result of natural disaster, but that was not the point I was trying to make. Here are the Town Operation budgets the past 3 years 2010 $32,367,562/ 2011 $32,205,370/ 2012 $32,045,298. I brought this up because this is where most of the 7 million dollar cuts would have to come from.
augie42
5:08 am on Monday, February 13, 2012
I guess we need to stop voting for raises to employees that already are paid much higher than similiar professions in our surrounding area......the presidence needs to to be set.