|
In May of this year Mayor Mike Bronko and the Board of Burgesses passed a no- increase budget, a fair and reasonable measure given the state of the economy. A zero percent increase, which was common in school districts around the state last year, meant the Board of Education would have to make cuts in order to meet contractual obligations for existing personnel and benefits, supplies, and services.
While most unions in the Borough agreed to zero wage increases, the teachers' union had negotiated a 3.25% increase. The Burgesses sent the contract to arbitration twice. The final arbitration decision came in May 2009. Teacher raises amounted to an additional $725,000 (net) for the current year. The Board of Education eliminated more than $1 million from its budget, including eleven teaching positions, professional services, instructional supplies, custodial overtime, and other items to balance the budget.
In July the Board became aware of unusually high prescription and dental claims for the last two months of the previous fiscal year. This resulted in the need to increase the amount budgeted for health insurance for the current year. The end of year closeout, which was completed on time August 31st, revealed other line items in the budget that needed to be adjusted upward. This was due principally to improved accuracy in accounting associated with migration to a legacy financial management system upon the departure in April of the Business Manager who had developed the current budget.
In September the Board of Education and Superintendent discussed possibilities to remediate the newly projected deficit through three furlough days for all staff, the elimination of common planning time, reassignment of two administrators, and several other reductions. A proposal to avoid layoffs was presented formally at a budget workshop in October as follows:
Budget Reductions, 2009-10
October 5, 2009
| Administrator Positions |
$100,000 |
| Business Manager |
$63,000 |
Retirees Switching to Sterling Insurance Plan
|
$91,000 |
Anticipated Insurance Savings from New Contract
|
$35,000 |
| Anticipated Savings Due to Insurance Waivers |
$85,000 |
9 Hours of Common Planning Time
|
$135,000 |
3 Furlough Days
|
$470,000 |
Early Retirement Plan
|
$0
|
| Total Potential Savings |
$979,000 |
These options were negotiated with the leadership of the teachers' union who decided not endorse them.
During the month of October, the BOE's new interim Business Manager, Wayne McAllister, undertook his own analysis of the BOE's budget. On November 11th he presented the Board with a recommended budget that called for many line item adjustments and a net increase in projected expenditures of $1,257,867 (in addition to the already projected $1 million shortfall). Some of the more significant additions were as follows:
| Health insurance |
$688,743 |
| Non-certified Staff Overtime |
$54,600 |
| Teachers Substitutes |
$50,000 |
| Professional Services |
$45,000 |
| Student Transportation |
$93,539 |
| Custodial Supplies |
$30,000 |
| Other Supplies, Equipment, and Services |
$295,985 |
After discussion with BOE members, that figure was adjusted downward by $317,000 as follows:
| Supervisors |
$70,000 |
| Security Personnel |
$10,000 |
| Security Service |
$24,000 |
| Student Transportation |
$73,000 |
| Replacement of Computer Equipment |
$45,000 |
| Textbooks |
$19,000 |
| Replacement Furniture |
$26,436 |
| Other Supplies, Equipment, and Services |
$49,564 |
This left a projected budget deficit on November 11th of $2,014,628 for this school year.
After the teachers' union turned down the above furlough package, the Board requested a study of staff reductions necessary to close the projected budget deficit. This list was to be organized in four steps of roughly $1/2 million each. The Superintendent and district administrators met and developed the $2 million list first. This was summarized in a memo the Superintendent gave to district administrators on November 16th, so they could talk with their faculties about these possibilities before reading about them in the newspaper should they be discussed at the Tri-boards meeting that night. This is the memo sighted by the newspaper and the union. The BOE had not received nor had the opportunity to discuss the list prior to its publication in the newspaper.
On November 30th the Board of Education presented a fiscally responsible plan to close this year's projected budget deficit while preserving class sizes and programs for children. The Board is seeking to mediate a resolution.
As a nation we are facing the most difficult financial conditions since the Great Depression. Naugatuck as a community can pull together to protect and preserve its most cherished resources - the schools. |
Board of Education
An MOA between the Naugatuck Teachers League and the Board Of Education
