Finance board head resigns after budget negotiations

EAST HAMPTON — After two nights of trying, the Board of Finance Wednesday produced a third version of the general government/town budget it hopes will pass at referendum.

But in doing so, the board laid bare simmering friction among some of its members, both with one another and the Board of Education.

At the night’s end, having put forward a revised budget, board members saw Chairman Michael J. Rose resign from the board.

In bifurcated voting in May, voters overwhelmingly approved the $30.49 million education budget, but surprisingly rejected the $15.1 million general government, or

town, spending proposal by a fourvote margin. A second vote in June saw it defeated by a 170-vote margin.

The new fiscal year began July 1, so the Town Council agreed to pass monthly budget extensions to keep town government functioning. Then, last week, Director of Finance Jeffrey M. Jylkka outlined a proposal to the Board of Finance he hoped could move the stalled budget process forward.

The board reviewed the proposal Monday and again Wednesday, during a meeting attended by several department heads, including Police Chief Dennis Woessner, Director of Public Works Dean Michelson, Superintendent of Schools Paul K. Smith, Town Councilor Kevin Reich and Board of Education member Joanne Barmasse.

A portion of Jylkka’s proposal would reallocate $250,000 intended for the purchase of a highway department truck to the Board of Education, with the understanding the panel would use it to hire three teachers.

By state law, only the school board can determine how the money it allocates can be spent.

The proposal drew the immediate approval of Rose and the board’s two Democrats, Barbara Moore and Ted Turner. But Vice Chairman Richard Brown objected to the proposal.

When the finance board reduced the size of the education increase by $670,000 during the budget-making process, Smith immediately announced he would lay off eight teachers.

Wednesday, Brown pointedly asked why the Board of Education had granted raises of between 6.5 percent and 8 percent to various school administrators even as they were accepting the layoffs.

The education budget as presented called for a 3.73 percent increase, which the finance board reduced to 1.5 percent.

“If they only come in at 2 percent in each of the past two years, we could have given them what they wanted,” Brown argued. By contrast, the town budget was “lean and responsible and deserves to be adopted now,” he said.

Brown’s colleague, Layne McLennan, said residents “knew there were going to be layoffs” when they approved the school budget. What’s more, McLennan said, the school board accepted it would make do without eight teachers.

That provoked a loud and angry response from an area where four education supporters were sitting, although it was not immediately clear who had made the comments.

Reallocating the $250,000 to the education budget would mean “ignoring the decision of the voters,” McLennan said.

For his part, Rose was disturbed that the town is received $700,000 in state funding and another $700,000 from a tax sale which it could use to pay for the three teachers.

“It blows my mind you are going to lay off teachers,” he told his colleagues.

But his words fell on deaf ears, as the four other Republicans all voted down the proposal.

Rose then proposed “putting forward the town budget as presented. I don’t believe we should have any cuts in its operating budget,” he said.

But board member Janine Jiantonio objected.

Even though she said she found the town budget “lean and transparent,” Jiantonio said “It really seems that people want a lower budget,” based on emails she said she had received. But eventually Jiantonio and her colleagues supported Rose’s motion.

The board then agreed to reduce capital expenditures (which are included in the town budget) by $91,000. The money was intended to be used to repair the roof at the library/community center.

However, the ultimate cost of the roof repair is expected to be closer to $312,000. The town last had allocated $89,000 for the project.

Jylkka proposed allocating $223,000 from fund balance (the town’s surplus) to pay for the roof repair project, while reducing the town budget by $91,000. The board agreed to that proposal, as well.

But having raised the issue of using the surplus, Jylkka then had to fend off efforts by some board members who wanted to drain that account. The agencies that rate the town’s financial health want to see the town keep approximately two months’ funding available in the event of a catastrophic emergency, he explained.

Board member Alannah Coshow pushed to reduce the town’s share of funding for a new playscape by

$15,000. But the rest of the board was clearly played out, and could not muster support for that or any other action, save one.

Taking its cue from Rose, who said, “I’ve spent more time with some of you than with my in-laws or my mom,” the board adjourned. After members did, Rose shook the hand of each board member, thanked Jylkka for his efforts both that night and during countless meetings, and informed Maniscalco he was resigning from the board.

As he was leaving the T-Bell room at the high school, where the meeting was held, Rose said, “My caucus has their own vision, and I believe they should have someone who represents that vision. I feel it is unconscionable not to spend $250,000 to fund three teachers when you have $1.4 million” to draw upon.

Rose subsequently sent Maniscalco an email addressed to both the manager and Council Chairwoman Melissa H. Engel, in which he said, “Please accept my resignation from the Board of Finance effective July 25, 2018. It has been a true honor to serve.”

The education budget as presented called for a 3.73 percent increase, which the finance board reduced to 1.5 percent.