Dale Martin
City Manager
City of Fernandina Beach
March 11, 2016 1:00 a.m.
This time each year typically has everyone anticipating the onset of spring: better weather, the impending end of school years, and a wide range of outdoor activities. Where I came from in Connecticut, though, this was budget time, and the nights were sometimes as long as those in mid-winter.
Connecticut’s budget cycle was somewhat convoluted and presented some challenges at the local government level. The Governor’s proposed budget was presented to the General Assembly in February. The General Assembly, which is part-time, then convened in order to adopt a budget by June 30, which was the end of the fiscal year.
The difficulty at the municipal level had to do with the timing of that process. In the Town in which I served, I had to present my proposed budget to the Board of Selectmen (the City Commission) no later than March 15 each year. While the preponderance of the Town’s revenues was the result of local property taxes, a sizeable portion was also contributions from the State. I would receive estimates as to what that state revenue would be, but that number was susceptible to change after my budget had been presented making it difficult to prepare a budget with a moving target (especially on the revenue side).
The Town budget had a few other challenges, more at the local level than the state level. Connecticut did not have county level government, but instead had 169 individual towns and cities that administered education (some towns did operate as regional school districts, but that was somewhat rare). The local Board of Education budget, therefore, was actually part of the Town’s General Fund budget- one very large line item appropriation to the Board of Education.
That line item was constrained by the Minimum Budget Requirement- a minimum amount what was required to be allocated by the Town. In my Town’s case, that amount was $19,958,149 (a number that I will never be able to purge from my memory). About two-thirds of that amount was provided by the State, but the remaining third was generated through local property taxes.
So, I put my budget together, including the Minimum Budget Requirement, and the total Town budget was typically in the area of $33-35,000,000, meaning about two-thirds was for the Board of Education and the remaining third for Town operations. I would then determine the millage rate necessary to support the proposed budget. In Connecticut, I was not statutorily limited as to what millage rate I set: I could propose a ten mill increase if I wanted and believed that I could justify such a levy to the Board of Selectmen, who assumed control of the budget after March 15.
The most significant challenge to the proposed budget followed shortly, though: the good old fashioned New England Town Meeting. After conducting at least two public hearings, the Board of Selectmen called for the Town Meeting on the first Monday in May. During that meeting, any registered voter could make a motion to reduce (not increase) any proposed expenditure (certain restrictions, such as contractual or debt obligations, were in place). If the motion were seconded, then everyone in attendance at the Town Meeting voted on the motion (by use of a machine voted booth). The vote was tallied, and if passed, the proposed budget was immediately amended. As long as people made motions, the meeting carried on. At some point, however, a motion would be made to move the budget from the Town Meeting to the Town Referendum.
The Town Referendum, usually around Memorial Day weekend, required that the proposed budget be voted on by the entire town. During the days leading up to the Referendum, the Town would be sprinkled with “Vote Yes” and “Vote No” signs. Letters to the Editor populated the newspaper pages and blistering narratives spanned the blogs.
If the budget was defeated, it was usually argued that the millage rate was too high, so the whole process would start over, but with an effort to reduce spending and the associated levy. When a budget was defeated, the feedback was typically that the voters were not satisfied with the Board of Education spending and they argued that the school spending should be reduced. The problem was the Minimum Budget Requirement- I couldn’t lower school spending, so the Town side of the budget bore the brunt of reductions, every single year.
After fighting through those months to get a budget passed, all it took was the General Assembly to adjust the revenue to the Town which would then throw the budget out-of-balance before the fiscal year even started! This year will truly be a challenge for my former Connecticut peers as that state faces massive deficits.
Although I undoubtedly expect budget challenges here, my trials by fire in Connecticut were some of my most intriguing budget experiences in my entire career. Local government is wildly different throughout the United States, but it is also wonderfully fascinating.