School budget faces possible cuts

House sees red in 2011 and beyond

By Jonathan Cook

Turley Publications Reporter

WARREN – Quaboag Finance Director Joe Scanlon shared the bad news with the school committee last week – the state House of Representatives is considering a reduction to Chapter 70 aid of $197 million for Fiscal Year 2011, beginning July 1 this year.

For Quaboag that translates into $472,492 less in state aid than was expected. Some of that was made up, Scanlon said, with stimulus money in the amount of $153,000. That left the school district with a gap of $318,000 or 3.4 percent.

Scanlon said representatives from both Warren and West Brookfield were in attendance at a budget subcommittee meeting in which three options were discussed.

Option A, he said, was to have the towns pay for all of it. Option B was to have the school do without. Neither was considered feasible, he said. With the towns, he explained, the Proposition 2 1/2 levy limit doesn’t have enough room left in it to cover all the costs.

Instead, as Option C, the town meetings will be asked to support more than was planned in above minimum contributions this year, but the district will be asked to do without a portion, as well.

“So it looks like if (the House budget) goes through, the district is going to have to reduce the budget somewhat and the towns appear that they will be agreeable in supporting larger increases,” Scanlon said.

“We had a very healthy discussion,” Scanlon added.

The bottom line is, Warren will be asked to contribute $201,476 over the minimum of $2,263,600. Yet, the town’s capital assessment was reduced this year from $455,366 in FY2010 to $20,735 in 2011. Also Warren’s transportation costs have gone down by almost $70,000.

The resulting total cost to the town including operating assessment and capital assessment is about $295,066 less than this year’s budget, even after the increased contribution.

In West Brookfield, the numbers are similar. Voters will be asked at the town meeting to add $128,685 to the minimum contribution of $2,241,186.

West Brookfield’s 2010 capital assessment of $263,599 was likewise reduced, in this case to $97,189 for 2011.

Across town at the Shepard Municipal Building, Board of Selectmen Chair Bob Souza said “not to paint a bleak picture, but the state last year used $2 billion in stimulus money for the budget, which means that next year we’re starting $2 billion in the hole.” What’s more, the state has only $500,000 in the rainy day fund, Souza said. On top of that, a fall ballot measure would reduce income tax to three percent, a loss of state revenue estimated at $2.5 billion. Souza added it up to a potential $5 billion budget gap next year and beyond.

“I would urge everybody that they want to look very hard at that (ballot) question, what that’s going to mean to your local aid and your schools,” Souza said.

Scanlon noted that the towns have continued their support for including the football program within the budget.