Finance board crafting third budget

EAST HAMPTON — The Board of Finance is weighing alternatives that could lead to a third — and final, members hope — referendum on the general government budget.

More than two months have passed since voters overwhelmingly approved the $30.49 million school budget. However, after two tries, the town has yet to win approval for the $15.1 million general government budget.

In the meantime, the town is running on a 90day interim budget.

The general government budget contains all noneducation spending as well as funding for capital improvements.

What has stymied town officials is the number of votes rejecting the general government budget increased dramatically from the first referendum in mid-May to the second in June. The finance board took a tentative step toward crafting a possible solution to the impasse Monday.

Convening in the Town Hall meeting room, the board weighed options that could produce a third proposed budget.

Members discussed a spending package developed by Director of Finance Jeffrey M. Jylkka in consultation with Superintendent of Schools Paul K. Smith.

Jylkka’s plan would reallocate $250,000 in capital funding to the Board of Education to retain three teaching positions. When the finance board trimmed the education budget increase from 3.73 percent to 1.5 percent, Smith immediately announced he would lay off eight teachers.

Ultimately, Smith was able to reduce the teaching staff through a mix of retirements and/or attrition.

The $250,000 had been allocated to buy new safety locks for classroom doors and purchase new Chromebooks and tablets for students and teachers.

If the finance board were to adopt the Jylkka plan, the money to pay for those items would be taken from the fund balance, the town’s surplus fund.

The board did not act on the proposal Monday because the agenda for the meeting only included discussion of “operations.” Because it was a special meeting, the state’s Freedom of Information Act prevents adding an item to an agenda of the meeting once it convenes. Adding an agenda item is permissible for regular meetings.

As a result, the board has scheduled another meeting for Wednesday evening. In the meantime, board members offered various options in an effort to resolve the impasse.

“I think compromise is in order,” former Chairman Ted Turner said.

“I think that’s the only way this is going to pass. I think everyone has compromise bones in their body. It’s up to us to get this thing passed now, not in September or October, but now,” he said.

Turner said he could accept the Jylkka proposal.

But Vice Chairman Richard Brown said doing so would reward the school department with another nearly $1 million increase in its operating budget. “That’s not sustainable, he said.

“It’s not possible, it’s not doable — it’s insane budgeting,” Brown said.

Board members also disagreed on the reason — or reasons — why the general government budget has twice failed to pass. It was originally seen as retribution by education supporters intent upon “punishing” the finance board for the sweeping reduction in the education spending.

But both Laynne McLennan and Alannah Coshow suggested that was far from the only reason.

“Some residents are upset by the confusing increase in taxes,” McLennan said.

“We can’t give the Board of Ed everything they want,” Finance Board member Janine Jiantonio said. “They don’t have bake sales to pay for things: That comes from taxpayers.”

“The (general government) operating budget is a lean budget, a good budget,” Coshow said. But, “My feeling is there have to be some reductions,” she said.

She proposed a 0.25 percent reduction to each department in general government.

“That’s the fairest way to go,” Coshow said.

But Brown rejected the proposal, saying Town Manager Michael Maniscalco had presented “a bare-bones budget.”

Stymied on how to proceed, the board agreed to take up the issue again Wednesday.

File photo The East Hampton Board of Finance is shown at a recent meeting in Town Hall.