The Longmeadow School Committee and the Longmeadow Education Association have reached a two-year collective bargaining agreement that provides for a 0% COLA for FY2010 and FY2011. Below is the official press release....
"The Longmeadow School Committee and the Longmeadow Education Association are very pleased to announce that they have reached a two-year collective bargaining agreement with the Association’s approximately 285 teachers, counselors, and specialists. During the negotiations that resulted in this agreement, the Committee and the Association recognized the extraordinary financial challenges facing the District. Although we are in difficult financial times, we all kept our “eyes on the child” and reached an agreement that does not further stress our financial resources. The agreement, which the LEA ratified last week and the School Committee approved this evening, provides for zero percent cost of living adjustments (COLAs) in FY 2010 and 2011, permits a temporary reduction in professional development days over the two-year period, and goes through August 31, 2011. The Committee and the Association are pleased that we have reached an agreement especially at this critical budget time."
Now that this contract has been settled... will the other town employee collective bargaining units without contracts for FY2010 and FY2011 do the same and accept a 0% COLA?
As summarized in a recent post (Tough Times Ahead for Longmeadow- Part IV, 1/10/10) achieving a balanced FY2011 budget will be very difficult with a current projected budget deficit of over $2 million. This agreement to a 0% COLA for FY2010 and FY2011 provides significant financial relief to the town of Longmeadow and allows our town leaders to create a balanced FY2011 budget without the uncertainty of a teachers union collective bargaining agreement.
A large thank you to Longmeadow teachers!
Showing posts with label fiscal planning. Show all posts
Showing posts with label fiscal planning. Show all posts
Tuesday, January 26, 2010
Monday, January 5, 2009
Is there a looming financial crisis for Longmeadow?
Two months ago Governor Deval Patrick announced significant cuts in budgets for most state departments after a $1.4 billion state budget shortfall. At the time there was no impact on local funding for cities and town. However, the Boston Globe reported on December 31 (see online story) that the governor was preparing up to $1.0 billion in additional cuts for the current fiscal year which may involve some cuts in local town/city funding.
From this 12/31/08 Boston Globe article…
“Governor Deval Patrick said yesterday that he was preparing for up to $1 billion in additional budget cuts, raising the specter of reductions in aid to municipalities, more layoffs of state employees, and drastic cutbacks in the services that state government provides to its residents.”
"There's a lot of pain, and it's going to have to be spread around," Patrick told reporters during a 30-minute briefing in his State House office. "Nobody's enjoying this. This is incredibly difficult."
Possible emergency budget cuts being considered by the state will not effect FY2010…. cuts in local budgets to compensate for less state aid will need to be made now! In FY2009. Cuts made in the middle of a fiscal year are much more difficult to make because the budget funding deficit must be made up before July 1.
In the current FY2009 the state budget is providing $5.3 billion in local aid to cities and towns. Current financial aid to Longmeadow is as follows:
FY2009
Schools- $3.9 million
Town- $2.3 million
Total- $6.2 million
In the yesterday’s Springfield Republican (1/04/09), it was reported that local western Massachusetts cities and towns were expecting a 5-10% cut in state for the upcoming FY2010… for Longmeadow that could be as much as $850,000. Let's hope that the Governor Patrick does not cut FY2009 local aid to cities and towns.
To add some additional worry for the current fiscal year, it was also reported in yesterday’s Springfield Republican that current motor vehicle excise tax collections for many towns/cities are down significantly for the current fiscal year.
Based upon the budget information (see page 2 of ATM report) presented at the 2008 Annual Town Meeting, Longmeadow was expecting $2.15 million in excise tax revenue for the current FY2009 fiscal year budget. A short fall of 10% would mean that the town would have to cut $215,000 from the current FY2009 budget.
In past years, the challenge to town leaders has been to prepare a balanced budget that meets the needs of our town for the upcoming fiscal year starting July 1. Let’s hope that we do not have make emergency cuts in town services before July 1 because of revenue funding shortfalls.
From this 12/31/08 Boston Globe article…“Governor Deval Patrick said yesterday that he was preparing for up to $1 billion in additional budget cuts, raising the specter of reductions in aid to municipalities, more layoffs of state employees, and drastic cutbacks in the services that state government provides to its residents.”
"There's a lot of pain, and it's going to have to be spread around," Patrick told reporters during a 30-minute briefing in his State House office. "Nobody's enjoying this. This is incredibly difficult."
Possible emergency budget cuts being considered by the state will not effect FY2010…. cuts in local budgets to compensate for less state aid will need to be made now! In FY2009. Cuts made in the middle of a fiscal year are much more difficult to make because the budget funding deficit must be made up before July 1.
In the current FY2009 the state budget is providing $5.3 billion in local aid to cities and towns. Current financial aid to Longmeadow is as follows:
FY2009
Schools- $3.9 million
Town- $2.3 million
Total- $6.2 million
In the yesterday’s Springfield Republican (1/04/09), it was reported that local western Massachusetts cities and towns were expecting a 5-10% cut in state for the upcoming FY2010… for Longmeadow that could be as much as $850,000. Let's hope that the Governor Patrick does not cut FY2009 local aid to cities and towns.
To add some additional worry for the current fiscal year, it was also reported in yesterday’s Springfield Republican that current motor vehicle excise tax collections for many towns/cities are down significantly for the current fiscal year.
Based upon the budget information (see page 2 of ATM report) presented at the 2008 Annual Town Meeting, Longmeadow was expecting $2.15 million in excise tax revenue for the current FY2009 fiscal year budget. A short fall of 10% would mean that the town would have to cut $215,000 from the current FY2009 budget.
In past years, the challenge to town leaders has been to prepare a balanced budget that meets the needs of our town for the upcoming fiscal year starting July 1. Let’s hope that we do not have make emergency cuts in town services before July 1 because of revenue funding shortfalls.
Sunday, April 27, 2008
The LONGMEADOW FINANCE COMMITTEE is looking forward….
As I highlighted in my last Buzz posting… in order to live within the town’s financial means there is a need to look at longer term fiscal planning.
Last week the LONGMEADOW FINANCE COMMITTEE issued their report to the Annual Town Meeting and recommended that the General Fund operating budget be reduced by $89,000 rather than using $89,000 from the Operating Stabilization Fund.
The committee recommended against supporting the General Operating Budget as proposed. “….we feel we need to reduce this proposed budget by $89,000 and save all we can for 2010.”
Their reasoning was based upon looking forward at next year’s (FY2010) difficult budget process wherein all town employees salary contracts (including teachers) will be renegotiated.
Last year’s BUDGET STRATEGIES COMMITTEE proposed a path forward through 2010 after recommending a Prop 2½ $2.15 million override. It was clear at that time that balancing the FY2010 budget without a Prop 2½ override was going to be a challenge.
Some excerpts from the latest LFC report…
Their reasoning was based upon looking forward at next year’s (FY2010) difficult budget process wherein all town employees salary contracts (including teachers) will be renegotiated.
Last year’s BUDGET STRATEGIES COMMITTEE proposed a path forward through 2010 after recommending a Prop 2½ $2.15 million override. It was clear at that time that balancing the FY2010 budget without a Prop 2½ override was going to be a challenge.
Some excerpts from the latest LFC report…
The first responsibility of the Finance Committee is to present to Town Meeting and all the citizens of Longmeadow a budget that balances the interests of all citizens, regardless of what level they use our myriad of premium town services, and a budget that is sustainable over the long term. …. Integrated in our challenge to balance resources and uses for the next fiscal year we are charged to advise the town on the impact the proposed budget will have on long term fiscal planning. As a town our challenge is to live within the means of the allowed annual 2 ½% increase in the tax levy without frequent Proposition 2 ½ overrides to finance our shortfalls.
The FC report also recommends a series of “facilitated forums” starting in September 2008 to get resident input on how to meet the upcoming FY2010 budget challenges. This is certainly a step in the right direction but how about extending the path forward to FY2012 rather than reverting back to the one year at a time planning process. And while this planning process is underway the town should also consider integration of possible future major capital expenditures (new/ renovated high school, DPW facility, et al) into the budget process in a more comprehensive approach to town finances.
The FC report also recommends a series of “facilitated forums” starting in September 2008 to get resident input on how to meet the upcoming FY2010 budget challenges. This is certainly a step in the right direction but how about extending the path forward to FY2012 rather than reverting back to the one year at a time planning process. And while this planning process is underway the town should also consider integration of possible future major capital expenditures (new/ renovated high school, DPW facility, et al) into the budget process in a more comprehensive approach to town finances.
I would strongly recommend that town residents read both the ATM warrant and the Longmeadow Finance Committee report and attend Tuesday night’s Annual Town Meeting. (starts at 7 PM at Longmeadow HS).
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