Selectmen to put school committees 'on notice'

Apr 25, 2014

Mattapoisett officials have grown weary with recurring fiscal problems in school budgets, and they’re planning to push for change.

“I think we need to put them on notice,” said Selectman Paul Silva.

Part of the Selectmen and Finance Committees’ Thursday meeting was devoted to a discussion on how to reign in spending at schools.

“It seems like funding our schools is backwards,” said Finance Committee member Elisabeth Pennington. “They come up with a budget and say 'here’s the budget,' and we fund it.”

The Old Rochester Regional School committee has whittled away its excess and deficiency fund to pay for regular budget items, which town officials say is not the purpose of the reserve fund. Left over funds at the end of the year are funneled into the account for unexpected costs.

“The fact that they’re using E and D money to build a budget is driving me crazy,” said Selectman Jordan Collyer. “That’s a fiscal no-no.”

The School Committee’s first budget draft earlier this year took $350,000 from the surplus fund.

“The majority expressed concern that that seemed to be growing from year to year,” said Town Administrator Mike Gagne. “If the bubble bursts, they’re going to be looking for those funds.”

The money was reduced to $200,000 in subsequent budget drafts with the agreement that any other reductions in the budget would lessen the reliance on E and D funds.

Even more concerning for Mattapoisett officials, is that ORR has no fund set up to pay for future retirement medical benefits.

The liability for the benefits already exceeds $10 million and is set to grow by half a million more each year, according to Finance Committee Chair Pat Donoghue.

Mattapoisett, Marion and Rochester already have liability funds set up to mitigate the mounting cost of health care for retired employees. And while the towns can encourage the ORR School Committee to do something, it is under no legal obligation to act.

“We think in addition to restoring the E and D, we need to come up with a mechanism where we protect ourselves from unexpected expenses at ORR plus future retirement medical benefits,” said Donoghue.

Gagne suggested dividing the fund into equal parts retirement benefits, capital needs and discretionary spending. He also said the Department of Revenue has a policy to help formulate a regional financial advisory committee that could work on a plan.

Mattapoisett officials said they would meet with Marion and Rochester leadership before moving forward with the idea.

But at home, there are also problems that need addressing with the elementary school committee, according to board and committee members.

Officials took issue with a recent Mattapoisett School Committee meeting in which members considered hiring an additional teacher. While the committee has the jurisdiction to manage its own budget, retirement benefits fall on the town, and that number goes up for every new employee.

“It’s not on their side, so they don’t see what the effect is,” said Town Administrator Mike Gagne.

Donoghue suggested making the School Committee more aware of the information so they could make “good fiscal decisions.”