Finance board sends East Lyme’s $71.7M budget to town meeting
East Lyme — Some residents speaking at a public hearing Monday at the middle school told the Board of Finance to cut more from the proposed 2018-19 budget, especially given a projected decline in state revenue to the town.
While some Board of Finance members favored more cuts to the town’s proposed education budget, the board ultimately voted after the public hearing to send the total proposed town and education budget of $71,787,140, a 1.35 percent increase, to town meeting without making changes. The proposed spending plan includes $18,071,025 for general government; $5,369,986 for debt service; $769,186 for capital projects and $47,576,943 for Board of Education.
Board of Finance Chairman Bill Weber said the town’s biggest challenge is on the revenue side, with projected losses that include $1,066,810 in Education Cost Sharing grant from the state and $686,093 for payment in lieu of taxes for state owned property in town.
During deliberations this spring, the Board of Finance cut $200,000 from the Board of Education’s adopted budget and $49,000 from the general government budget.
First Selectman Mark Nickerson said that by finding efficiencies and reducing positions through attrition, the town government portion of the budget is less than the current budget.
Superintendent Jeffrey Newton said the majority of the education budget is salaries and benefits. He said the education budget proposes cutting two teaching positions, while adding 2.7 social worker positions districtwide and a part-time psychologist at the elementary school level to assist with mental health issues. With the reduction from the Board of Finance, school officials will have to see whether to push forward or make adjustments to that proposal.
Based on current state revenue projections that are not final, the total budget would create a tax rate increase of 1.19 mills. Weber gave three examples of the impact of the tax rate on homeowners:
A homeowner with a home assessed at $250,000 who paid $6,540 in taxes this year would pay $6,838 next year under the proposed budget.
A homeowner with a home assessed at $350,000 who paid $9,156 in taxes this year would pay $9,573 in taxes next year.
A homeowner with a home assessed at $450,000 who paid $11,772 in taxes this year would pay $12,308 next year.
Three residents spoke during the public hearing.
Resident Ron Rando said that his taxes increase every year.
He said that the Board of Finance keeps increasing taxes while saying people come to East Lyme for the schools, those people only stay in town for 12 years and leave after their children are educated. He proposed cutting the education budget by $1 million.
Diane Swan stressed the importance of working together. She said it’s a sad state of affairs when children and community members are continually impacted by what is happening at the state or the federal level.
“We need to start pushing back on these mandates that we can no longer fund,” she said.
Resident John Drabik said the town is coming to the taxpayers for what the state cut, and it’s time to “live within your means.”
During the special meeting, some Board of Finance members felt the $200,000 cut to the proposed education budget was sufficient, while others thought they should reduce the budget further.
Board of Finance member Lisa Picarazzi made a motion to further reduce the proposed education budget by $35,000 but the motion was not seconded.
The Board of Finance voted 3-2 to send the budget as it stood to a town meeting on May 14, with Board of Finance members Camille Alberti and Picarazzi opposed. Alberti said during the meeting that she had felt the $200,000 cut wasn’t enough and towns should make changes locally, given the fiscal situation at the state level.
The annual town meeting is slated to adjourn to a budget referendum, which will take place from 8 a.m. to 8 p.m. on May 24 at the East Lyme Community Center.