Board of Selectmen Workshop, March 20, 2024

The struggle to cut the operating budget by 5.1%.

Because the voters rejected the town’s proposed budget, state law imposes on the town a default budget largely identical to the prior year’s budget, except for some contractual adjustments. Nominally, this budget is $290k lower than the proposed budget, but since last year’s budget included two items (funding for the lake host program and contributions to local social services agencies) that were moved to separate warrant articles in 2024, the shortfall was reduced by nearly $30k leaving about $260k that the board must squeeze out of its proposed budget of $5.138 million - or nearly 5.1% in cuts. Meanwhile, the current inflation rate is about 3.2%. 

Selectman Decker said he had looked at what has been spent so far this year. The current spending rate is in excess of the proposed budget. 

As the magnitude of the cuts is so large, the board spent a considerable amount of time at the beginning of the meeting discussing what options were available to them should they feel that they were unable to propose a budget within the $4.848 million default budget figure. These options include holding a special election, at a cost of about $7k, to propose a new budget to the voters or finding that they must declare an emergency due to unexpected expenses. In case of emergency, the board can petition Rockingham Superior Court to allow the town to tap the town’s unrestricted fund. 

There was an extensive discussion of how to propose a new budget for a special town meeting. The process would be similar to the regular cycle. The Budget Committee would have to approve the proposed budget. There would be a deliberative session and another election. 

Selectman Dabrieo projected that the board would likely come up with a budget proposal that was halfway between the proposed and default budgets to propose to the voters. Selectman Shirland said he thought the voters needed to be informed that the Town cannot operate on the default budget. 

In the earliest part of the meeting there were short presentations from all of the major town departments, excluding the Fire Department. 

Most departments came in over budget in 2023. Large wage increases were granted three quarters of the way into the year, exceeding the amount budgeted for pay increases. Positions may need to be cut.

The board spent most of the meeting going through the budget line by line discussing budget items as small a couple hundred dollars (e.g., electricity for the historic Grange building). Many small budget reductions were made.

The board looked for items that could be covered with funds outside the operating budget. Building maintenance budgets were targeted for reductions because last year’s warrant articles included funds for maintenance to catch up with deferred maintenance.

One of the largest gaps in departmental budgets is for the Police Department, with current spending substantially above the 2023 levels. The proposed Highway budget was $115k less than the default budget. This nearly offsets the Police Department’s overage. (The Budget Committee had pushed the board to put more highway spending into the operating budget and not to put it in warrant articles.)

The board cut $100k from the Highway budget. Chairman Morin said, “please do not complain about your road being bumpy.”

The library’s hours were reduced to decrease payroll.

None of these budget decisions are final. The board will meet again on the budget next week. 

Much of the recording of the meeting is inaudible and full of static. In particular the Town Administrator’s comments frequently cannot be heard. 

Watch the video: