Category Archives: Financial

House budget #s

The House released its proposed budget numbers, and we do about $200,000 better than last year with their proposal.  The Governor gave us about $100,000 more than last year.  Usually our numbers do not go down, and the Senate which weighs in last often increases our total state aid.   The Governor did revenue sharing by increasing part of our state aid by the same 4.3% that the state’s revenues increased, and the House extends that 4.3% increase to more state aid items. I am not sure why our Charter Tuition Reimbursement has gone up so much on a percentage basis.

20160414-house budget

Below is the report and instant analysis from the MMA yesterday afternoon on the state budget as it affects municipalities.


Wednesday, April 13, 2016

HOUSE BUDGET COMMITTEE OFFERS $39.5B FY 2017 STATE BUDGET THAT MAKES KEY INVESTMENTS IN MUNICIPAL AND SCHOOL AID
• INCLUDES THE FULL $42M INCREASE IN UNRESTRICTED MUNICIPAL AID (UGGA)
• INCREASES CHAPTER 70 BY $24M TO FUND MINIMUM AID AT $55 PER STUDENT
•ADDS A $10M RESERVE TO AID COMMUNITIES WITH LOW-INCOME STUDENTS
• ADDS $5M TO FUND THE SPECIAL EDUCATION CIRCUIT BREAKER
• ADDS $1M MORE FOR REGIONAL SCHOOL TRANSPORTATION
• LEVEL-FUNDS MOST OTHER MUNICIPAL AND SCHOOL ACCOUNTS

Earlier this afternoon, the House Ways and Means Committee reported out a lean $39.5 billion fiscal 2017 state budget plan to increase overall state expenditures by 3.3 percent. The House Ways and Means budget is $76 million smaller than the budget filed by the Governor in March, yet it also increases Chapter 70 aid by $24 million above the Governor’s recommendation by increasing minimum aid from $20 per student to $55 per student, and also includes a new $10 million reserve to aid communities impacted by changes in the calculations used to account for low-income students. The full House will debate the fiscal 2017 state budget during the week of April 25.

H. 4200, the House Ways and Means budget, provides strong progress on many important local aid priorities, including the full $42 million increase in Unrestricted General Government Aid that the Governor proposed and communities are counting on. The House W&M Committee would increase funding for several major aid programs, by adding $5 million to the Special Education Circuit Breaker, adding $1 million to Regional School Transportation, and increasing Chapter 70 minimum aid to $55 per student.

PLEASE CLICK HERE TO SEE YOUR COMMUNITY’S LOCAL AID AND PRELIMINARY CHERRY SHEET NUMBERS IN THE HOUSE WAYS & MEANS BUDGET, AS ESTIMATED BY THE DIVISION OF LOCAL SERVICES

$42 MILLION INCREASE IN UNRESTRICTED MUNICIPAL AID
In a major victory for cities and towns, H. 4200 (the HW&M fiscal 2017 budget plan) would provide $1.021 billion for UGGA, a $42 million increase over current funding – the same increase proposed by Governor Baker. The $42 million would increase UGGA funding by 4.3 percent, which matches the growth in state tax collections next year. This would be the largest increase in discretionary municipal aid in nearly a decade. Every city and town would see their UGGA funding increase by 4.3 percent.

CHAPTER 70 MINIMUM AID WOULD INCREASE TO $55 PER STUDENT
The House budget committee is proposing a $95.8 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $55 per student. This is $24 million more than the recommendation in the Governor’s budget submission. The budget would continue to implement the target share provisions enacted in 2007. Because most cities and towns only receive minimum aid, this increase would benefit the vast majority of communities.

FUNDS A $10M RESERVE TO AID COMMUNITIES WITH LOW-INCOME STUDENTS
The House Ways & Means budget also includes a new $10 million reserve to aid communities impacted by changes in the calculations used to account for low-income students. This would supplement Chapter 70 distributions to address shortfalls in aid levels due to the new methodology used to count low-income students. DESE would administer this program, and make funding decisions by October 2016.

$5 MILLION INCREASE INTENDED TO FULLY FUND SPECIAL EDUCATION CIRCUIT BREAKER
In another victory for cities and towns, House leaders have announced that they support full funding for the Special Education Circuit Breaker program. Their budget plan would provide $276.7 million, a $5 million increase above fiscal 2016, with the intention of fully funding the account. This is a vital program that every city, town and school district relies on to fund state-mandated services.

ADDS $1 MILLION TO REGIONAL SCHOOL TRANSPORTATION
House Ways and Means Committee budget would add $1 million to bring regional transportation reimbursements up to $60 million. The MMA will work to continue building on this welcome increase.

FUNDING FOR CHARTER SCHOOL REIMBURSEMENTS INCREASED BY $5 MILLION, BUT STILL UNDERFUNDED
Under state law, cities and towns that host or send students to charter schools are entitled to be reimbursed for a portion of their lost Chapter 70 aid. The state fully funded the reimbursement program in fiscal years 2013 and 2014, but is underfunding reimbursements by approximately $46.5 million this year. The House Ways and Means budget would increase funding for charter school reimbursements to $85.5 million, a $5 million boost, although this is $15 million less than the amount recommended by Gov. Baker. The program is underfunded in both budget proposals, and increasing this account will be a top priority during the budget debate.

PAYMENTS-IN-LIEU-OF-TAXES (PILOT), LIBRARY AID ACCOUNTS, METCO, McKINNEY-VENTO, AND SHANNON ANTI-GANG GRANTS
The House budget committee’s proposal would level-fund PILOT payments at $26.77 million, continue to fund library grant programs at $18.83 million, level-fund METCO $20.1 million, and level-fund McKinney-Vento reimbursements at $8.35 million. All four of these accounts are funded the same in both the Governor’s and House Ways and Means Committee’s budgets. However, the HW&M budget would reduce Shannon Anti-Gang Grants to $5 million, a $2 million reduction.

Please Call Your Representatives Today to Thank Them for the Strong Local Aid Investments in the House Ways and Means Committee Budget – Including the $42 Million Increase in Unrestricted Local Aid, Providing Chapter 70 Minimum Aid at $55 Per Student, Funding the Special Education Circuit Breaker, and Adding Funds to Regional School Transportation

Please Explain How the House Ways and Means Budget Impacts Your Community, and Ask Your Representatives to Build on this Progress During Budget Debate in the House

Thank You!

Warrant Committee members this year

cropped-medfield-town-house2.jpgModerator Scott McDermott has appointed Jack Wolfe to the Warrant Committee for the upcoming year to replace retiring long time Warrant Committee stalwart Gus Murby, and reappointed Tom Marie and Nick Athanasiadis, as per the Moderator’s letter below re same.

Warrant Committee Chair Mike Marcucci and Warrant Committee members Greg Sullivan, Sharon Tatro, and Martha Festa all attended the meeting of the selectmen this past Tuesday to start earlier than in the past discussions with the selectmen and town administration about the upcoming FY17 budget – that budget will be voted on at the town meeting at the end of April.

The Warrant Committee also reported to the selectmen on Tuesday that the Warrant Committee is doing their annual training with Mike Sullivan on 10/3 and holding their first meeting of this budget cycle on 10/13.

FY 2016 Warrant Committee
Gregory Sullivan of 122 Green Street [term expires 2016]
Michael T. Marcucci of 3 Causeway Street [term expires 2016]
Martha Festa of 16 Quail Run [term expires 2016]
Barbara Gips of 25 Boyden Road [term expires 2017]
Sharon Kingsley Tatro of 12 West Street [term expires 2017]
Robert M. Skloff of 11 Wheelwright Road [term expires 2017]
John E. (Jack) Wolfe of 17 Harding Street [term expires 2018]
Nikolaos Athanasiadis of 30 Quarry Road [term expires 2018]
Thomas C. Marie of 72 Pine Street [term expires 2018]
Michael T. Marcucci shall serve as Chairman.


September 23, 2015
Carol Mayer, Town Clerk
Town of Medfield
Medfield MA 02052

Re: 2016 FY Appointments to the Warrant Committee

Dear Ms. Mayer:

I am very pleased to confirm the FY 2016 appointments to the Warrant Committee of the Town of Medfield. I am honored to appoint John E. (Jack) Wolfe of 17 Harding Street to the Warrant Committee for a term which shall expire in 2018. Jack will succeed Gus Murby who served with great distinction as a member and Chairman during his two full terms in office.

I am also very pleased to affirm the re-appointment of Nikolaos Athanasiadis of 30 Quarry Road and Thomas C. Marie of 72 Pine Street for new terms which shall expire in 2018.

Finally, I am pleased to report that the following six members of the Committee are continuing in the service of the Town of Medfield:

Gregory Sullivan of 122 Green Street [term expires 2016]
Michael T. Marcucci of 3 Causeway Street [term expires 2016]
Martha Festa of 16 Quail Run [term expires 2016]
Sharon Kingsley Tatro of 12 West Street [term expires 2017]
Robert M. Skloff of 11 Wheelwright Road [term expires 2017]
Barbara Gips of 25 Boyden Road [term expires 2017]

I will request that each new and re-appointed member contact you to arrange to take the oath of office at your earliest mutual convenience. As always, thank you for your consideration.

Very truly yours,
Scott F. McDermott

cc: Town Administrator
Board of Selectman
Warrant Committee

Budgeting discussions tonight

The Warrant Committee has sent the BoS the memo below of the budgeting issues it plans to discuss at tonight’s BoS meeting.

I had a list of budgeting issues I had developed this spring for a planned joint meeting of the BoS, Warrant Committee, and Water and Sewer Board in response to the budgeting conflicts W&S had with the Superintendent this year before town meeting (I am told that joint meeting has been postponed to the fall), and i have attached my proposed agenda after the WC memo.


 

MEMORANDUM
To: Medfield Board of Selectmen
From: Michael T. Marcucci
Warrant Committee Chairman
CC: Members of the Warrant Committee
Michael Sullivan, Town Administrator
Scott McDermott, Town Moderator
Date: June 14, 2015
Re: Issues for Discussion at June 16, 2015 Selectmen’s Meeting
______________________________________________________________________________
This Memorandum sets out several issues that members of the Warrant Committee would like to discuss at our June 16 meeting. The goal is to identify ways to improve the Town’s budgeting process and enhance the coordination between the Board of Selectmen and the Warrant Committee. The suggestions expressed here do not represent the views of the entire Warrant Committee and are raised for discussion purposes only.

Discretionary Spending: This year’s debate over Straw Hat Park has prompted discussion about how similar proposals should be addressed in the future. While there is no consensus on how the resolve the issues, several possibilities are identified below.

* Selectmen’s Discretionary Fund- one possible resolution would be to create a fund to be spent at the Selectmen’s discretion. The amount (in the range of $25,000-$50,000) would be appropriated in advance and the Selectmen would then decide how it should be spent. Thus, the Selectmen—and not the Warrant Committee—would be assessing the relative merits of various proposals within budget limits imposed by Town Meeting. If this cannot be done formally, it can be done informally by an agreement from the Warrant Committee to support some amount of discretionary spending recommended by the Selectmen. This would place these sorts of value judgments within the purview of an elected body.

* Advance Budget Guidance—As Gus Murby has noted, we are concerned about abusing volunteers’ time by asking them to undertake a project with no certainty of funding the outcome of that work. One possible resolution would be to provide joint budget guidance in advance. This would always be subject to the risk that other events would squeeze out funds when the budget is finally prepared but would at least provide some guidance about a budget range the Selectmen and Warrant Committee would be comfortable recommending to Town Meeting for the type of project contemplated.

Capital Budget: the capital budget process needs to be reformed. The current approach of fixing a set amount each year for capital spending which is then allocated by the Capital Budget Committee over several meetings at the end of the budget process does not allow for sufficient planning or flexibility. The amount of capital spending each year should be flexible based on the capital needs of the town and available funds each year. One possible approach would be to identify all capital needs over a 5 year period, which will then be prioritized by the Capital Budget Committee and then may be funded as appropriate over that period. The amount funded annually will vary with circumstances, but, over time, the capital projects of the town will be funded as needed.
We should also address within the capital budget process the sort of capital projects, like the Wheelock boilers and the traffic study this past year, which are capital projects but end up in separate warrant articles. Even if, as a matter of law or procedure, certain capital items must be voted on as separate warrant articles, they should still be vetted by the Capital Budget Committee and considered as part of the town’s capital plan.

Medfield State Hospital: As expressed in the past, the Committee is generally of the view that the Town should come to a resolution of the Hospital site sooner, rather than later. Preferably, this will be done some time in 2016. Whatever the Town decides to do with that property will have a significant impact on the Town’s finances for the foreseeable future. Given that, it seems that a simple up or down vote on a proposal to develop the property is insufficient. If the Town chooses not to develop the property, we must address the long term costs of ownership, which likely will require either increased taxes or cuts in other budgets. Otherwise, both expected and unanticipated costs associated with the Hospital property will squeeze out other budget priorities. The most prudent course may be to address this issue alongside any vote on a proposal from the
Medfield State Hospital Master Planning Committee.

Water & Sewer: Pete and I have discussed a joint meeting with the Warrant Committee, Selectmen, Water & Sewer Board, Ken Feeney and Mike Sullivan to sort out the  Water & Sewer budget process. We are happy to participate in such a meeting.


 


This was my suggested set of budget issues that I saw which needed to be addressed:

Financial Planning Meeting

Attending:
Board of Selectmen
Warrant Committee
Water and Sewer Board

AGENDA

1. Operating budget
a. Data – what data do boards need to create their budgets
i. e.g. – W&S tool
ii. dates and/or schedules
b. Responsibilities for generating the data
c. Uniform format for proposed budgets
i. last two years actual
ii. actual spending last prior full year
iii. requested next year – + explanations of changes

2. Capital budget
a. five year projections
b. total budget amount – how set?
i. NB – Arlington uses 5% of operating budget as its expectation

3. Budget calendar
a. create a template to reuse year by year going forward
i. e.g. – week 1 – all town boards meeting (in September)
week 2 – . . .
week 34 – annual town meeting (ATM)
b. meetings to set parameters
i. who is included
ii. selectmen should weigh in on expected increases
c. establish responsibilities and time lines for meeting
i. assign departments to dates
d. compare to timing and process in Amherst, Arlington, and Dedham (see attached)

4. Planning for the future
a. Mike Sullivan to plan for his successor
i. to create and document a written how to do the Medfield budget guide
ii. to document each step as he takes it in the first year, so town has a written budget road map of what needs to be done to create the budget each
iii. to cross train Kris to do all the steps in the budget process next year
b. Transparency
i. implement www.opengov.com and/or www.visgov.com (open source)
ii. implement the state’s system of putting its checkbook online
iii. implement the Willis Peligian tool town wide
iv. implement proper governance over budgets and associated expenditures:
(1) require budgets to include realistic operating and capital expenses; &
(2) include a separate contingency line item in each budget

5. Create a Business Manager for town, similar to business manager for the schools

 

Does Medfield want open data?

I have suggested that Medfield’s budget data and checkbook should be online so that anyone can easily see what the town spends its monies on and can also easily research the town budget priorities.  There are software apps that make this easy to do.  The state uses one to put its checkbook online, and i have seen two apps that focus more on the department budget side of the data, via http://www.opengov.com and http://www.visgov.com, which would provide their apps for a few thousand dollars a year.  Visgov.com is actually open source software, and we could use it at no cost if we installed it on our own.

The selectmen, the Warrant Committee and the Water and Sewer Board are supposed to meet soon to resolve budgeting issues that arose in the months prior to the annual town meeting,  and I am suggesting that we use that financial summit meeting to both resolve expectations as to our budgeting process going forward, but also to implement online budgeting to make the town finances more transparent.

Therefore, I was especially interested when today I saw the article below that indicates a high percentage of residents want the data available to them and expect that having it available will make their towns operate better.


Study: How Tech Can Improve Citizen Engagement

Citizen Perceptions of Data
The Pew Research Center recently conducted a survey to benchmark public sentiment on government initiatives that aim to leverage open data streams to improve services. The survey aimed to gauge:

  • People’s awareness of government efforts to share data
  • Whether these efforts translate into people using data to track government performance
  • If people think government data initiatives have made, or could make, government performance better or improve accountability
  • The more routine kinds of government-citizen online interactions

The survey analyzed citizen perception of government data use in the early stages at the local, state and federal levels. Overall, the public seems optimistic of open data government initiatives – specifically with improving accountability. While most participants use online data portals to find basic government information, the vast majority are not using the information to monitor government performance.

The Findings
The survey revealed:

  • 65 percent of Americans have used the internet to find data or information about government in the last 12 months
  • 19 percent could think of an example of where the local government did a good job providing information to the public about data it collects
  • 19 percent could think of an example of where the local government failed to provide enough information about data and information to the public
  • 56 percent hope open data can help journalists better cover government activities
  • 53 percent hope open data can make government officials more accountable
  • 49 percent expect open data to improve the quality of government services
  • 48 percent want open data to allow citizens to have more impact on government affairs
  • 45 percent predict open data to enable government officials to make better decisions

The majority of respondents are comfortable with the idea of government agencies collecting and sharing public data on a variety of platforms. Yet many remain cautious of providing their own data to the government such as mortgage information.

Driving Engagement
According to a recent IDC Government Insights report governments should invest in 3rd platform technologies – cloud, mobile, social and big data – to effectively drive citizen value and engagement. The study predicts more than 50 percent of government agencies will direct at least 25 percent of their citizen engagement budgets to 3rd platform technologies and the Internet of Things (IoT) solutions by 2020.

New digital channels coupled with a more comprehensive approach to redefining the citizen experience will align the goals of values of local leaders and residents. The research identifies five maturity stages for the citizen experience to help governments better understand the needs and goals of each group and select appropriate technologies to meet these expectations:

  • Ad hoc: Citizens request information across multiple channels
  • Opportunistic: CRM applications enable front-end automation so citizens can access information on their own
  • Repeatable: Digitization of workflows across channels allow citizens to handle services through full automation
  • Managed: Digital self-service allows citizens to show across multiple agencies and enables interactive handling of citizen requests
  • Optimized: Omni-channel citizen experience ensures consistent, convenient experience at very low cost to the government

The research suggests investment in 3rd platform technologies and the Internet of Things will help governments reduce costs while improving overall performance and accessibility. These interactive solutions better deliver new capabilities to public agencies and residents, while optimizing resource allocation and improving the way services are delivered.

Lack of Awareness
One major constraint many public agencies face when considering investment in new technologies and the Internet of Things is a lack of knowledge. A recent survey found only half of American adults are familiar with the term Internet of Things – which refers to the network of physical objects embedded with sensors and technologies to collect data that will guide decision making to improve services.

Because many Americans are unaware of how the Internet of Things works with existing infrastructure and services, 85 percent have concerns about the increased risk to breach of security and privacy. Furthermore, 70 percent fear IoT investment will have a negative impact on daily interactions and 51 percent are concerned about technical issues and the cost of repairing them.  If the public had a better understanding of how IoT and other new technologies are driving efficiency, there may be more support behind these investments.

Related Content
Challenging Tech Community to Solve Civic Problems w/Apps
Community at the Center of Civic Hacking
3 Cities Optimizing Open Data

School budget & OPEB

This exchange took place under the comments to the post about the MMA annual meeting, and are worthy of more people seeing them –


  1. Pete-

    I find it absolutely stunning that there is no coverage of school budgets, in particular the relationship of cost to rising and falling student populations. School spending represents, far and away, the largest item in any town or city budget, yet no one seems to want to deal with the issue. Also, I see nothing on the agenda that addresses the massive shortfall in the funding of employee benefits. I note that there’s a session on “Lessons and land mines”. Is this a tutorial to help public officials avoid facing the really important fiscal issues? Very disappointing.

    Sent from my iPad

  2. Selectman Osler “Pete” Peterson

    Charlie,
    Thanks for your comments. i am catching up,so please excuse my delay.

    First, town officials have absolutely no say or control over school budgets, so I would guess that is the reason that there are no MMA seminars on school budgets. The town as a whole can only approve or not the total school budget at the town meeting, but once a budget amount is approved by the town meeting it is then up to the superintendent as to how those monies get spent. While I am exceedingly interested in the school budget issues you raise, please know that i already probably spend about 20 hours a week already just trying to do my volunteer job as a selectman (and i also have a full time job as an attorney), so I have yet to find the extra time to study the school budget issues. Also, those issues really are the purview of the school committee, not the selectmen, despite my interest.

    I see that the school committee meeting to discuss the budget got postponed by the storm, and so i encourage you to go to the re-scheduled meeting to raise your school budget issues with them.

    Second, I certainly did hear about OPEB liabilities again this year at the MMA annual meeting, although I did hear more about it last year. The MMA is seeking to be part of the solution, crafting legislation to improve the OPEB situation. Governor Patrick’s commission on the OPEB issue made recommendations over a year ago, but the MMA opposed them on the basis that they both did not do enough and also what id did do would make things worse for towns. Look at the MMA’s website (www.mma.org) and you should find the action item that the membership voted on this past Saturday morning to ask the legislature to enact OPEB reforms.

 

Visual budgets

At the Mass. Municipal Association annual meeting last weekend, I saw and heard presentations of an open source software product developed for the Town of Arlington by programers who live in Arlington, to show the town budget in a highly visual format. One merely clicks on the blocks to drill further down into the details.  http://visgov.com/

Since it is open source, Medfield could implement it at no cost if we have someone who knows how to do so.  If we hire the company that is managing the software, they would charge us $3,000.

I recommend that we employ this software, and that the town also employ software to put the town checkbook on-line, as the state has already done.

Budget meeting

The selectmen meeting last night included the annual budget meeting at which all department heads attend, and we all hear from the Chair of the Warrant Committee and the Town Administrator.  Mike Marcucci, Chair of the Warrant Committee related –

  • Substance
    • no override needed
    • budget increases should not exceed 2%
    • use the new meals tax’s estimated $100,000 per year to reduce property tax reliance
    • involve the new Energy Manager position
  • Procedures
    • special town meeting (STM) in March about the public safety building
    • WC wants the proposed budgets as soon as possible due to the STM
    • asks for electronic submissions of budgets
    • no need to meet with WC if increases are less than 1.5%
    • will start meeting on public safety building 12/9/14

Mike Sullivan reviewed hi first cut at the FY2016 budget – see copy atached.

20141104-Mike sullivan-Tax Levy Estimates for FY16

Warrant Committee

The Town Moderator, Scott McDermott wrote to the Town Clerk to advise her of the members of the warrant Committee, as follows


October 1, 2014
Carol Mayer, Town Clerk
Town of Medfield
Medfield MA 02052

Re: 2014-2015 FY Appointments to the Warrant Committee

Dear Ms. Mayer:

I am very pleased to confirm the FY 2014-2015 appointments to the Warrant Committee of the Town of Medfield. I am honored to appoint Sharon Kingsley Tatro of 12 West Street and Robert M. Skloff of 11 Wheelwright Road to the Warrant Committee for terms which shall expire in 2017. Sharon and Robert will succeed Joanna Hilvert and James O’Shaughnessy who served with great distinction during their respective terms in office.

I am also very pleased to affirm the re-appointment of Barbara Gips of 25 Boyden Road for a new term which shall expire in 2017.

Finally, I am pleased to report that the following six members of the Committee are continuing in the service of the Town of Medfield:

Gustave H. Murby of 122 Harding Street [term expires 2015]
Nikolaos Athanasiadis of 30 Quarry Road [term expires 2015]
Thomas C. Marie of 72 Pine Street [term expires 2015]
Gregory Sullivan of 73 South Street [term expires 2016]
Michael T. Marcucci of 3 Causeway Street [term expires 2016]
Martha Festa of 16 Quail Run [term expires 2016]

I will request that each new and re-appointed member contact you to arrange to take the oath of office at your earliest mutual convenience. As always, thank you for your consideration.

Very truly yours,
/Scott F. McDermott/
Scott F. McDermott
cc: Town Administrator
Board of Selectman
Warrant Committee


FY 2015 Warrant Committee

Gustave H. Murby of 122 Harding Street [term expires 2015]
Nikolaos Athanasiadis of 30 Quarry Road [term expires 2015]
Thomas C. Marie of 72 Pine Street [term expires 2015]
Gregory Sullivan of 73 South Street [term expires 2016]
Michael T. Marcucci of 3 Causeway Street [term expires 2016]
Martha Festa of 16 Quail Run [term expires 2016]
Barbara Gips of 25 Boyden Road [term expires 2017]
Sharon Kingsley Tatro of 12 West Street [term expires 2017]
Robert M. Skloff of 11 Wheelwright Road [term expires 2017]
Michael T. Marcucci shall serve as Chairman.