The Budget Process:  The State of the Town Meeting

Second in a Series of Commentaries by the Finance Committee

On October 19, an important meeting was held in Brooks Auditorium. The State of the Town Meeting was organized by the Selectmen with two important goals: first, to give each of the Town agencies the opportunity to explain to interested citizens, and to each other, the critical issues and challenges of the year to come, and second, to give interested citizens an opportunity to listen, to question, and to offer feedback to their elected and appointed officials.

In our last Commentary, the Finance Committee explained how we arrived at the Budget Guideline of 0% growth for Fiscal 04, based on the limited revenue available for discretionary spending. A level-funded budget is a very difficult budget to develop, especially when the bulk of our costs are personnel expenses. It requires the town administration, independent boards and our schools to re-examine the services they provide, to seek more cost-effective ways to provide those services, and to evaluate each service in terms of its cost and its benefits.

Against the backdrop of a level funded budget, the Finance Committee was struck by several observations at the State of the Town meeting.  We were struck by the complexity and the cross jurisdictional nature of many of the issues facing the town, particularly around the question of Affordable Housing and the implications of Chapter 40B on school enrollment, the property tax, infrastructure requirements, and the town’s water capacity.  We were struck by the emphasis on exploring or re-visiting additional revenue sources.  We were struck by the relative silence on tax relief.  And finally, we were struck by the burden in time and expertise that these issues place on our largely volunteer town government.

As the Finance Committee puts together the Fiscal Year 04 budget and a probable Override request, we will try to incorporate the State of the Town discussion into our review of the budgets presented by town boards.  The most important next steps in that process are as follows:

•    On Monday, November 18, the Finance Committee and the Board of Selectmen will meet to discuss the proposed town-side budget and  override requests. The Finance Committee will be particularly interested in the Board’s view on the possibility of further tax relief, on affordable housing and the potential budget impact of Chapter 40-B,  implementation of the Community Preservation Act, and additional revenue possibilities.

•    On Thursday, December 12, the Finance Committee and the K-8 School Committee will meet to review their proposed budget and any override items. The Finance Committee will want to hear K-8’s revenue and expenditure considerations, particularly in view of the soon to be released findings and recommendations of the K-8 Task Force.

•    On Thursday, January 9, the Finance Committee will meet with the Lincoln-Sudbury School Committee to review their proposed budget and its impact on our override.  The Finance Committee is meeting regularly with the high school and the Sudbury Finance Committee to help coordinate the two towns’ approaches to the LS budget and override requests.

•    On Thursday, January 16, the Finance Committee will hold its final Budget meeting prior to sending the FY’04 Financial Section of the Warrant to the printers.  This meeting is the culmination of the budget development process and we will endeavor to set appropriate priorities among competing interests.

 Over the next few months, as town boards submit their budgets to the Finance Committee for review, the shape and size of the Override will become clearer.  As we deliberate on the budget(s) we will ultimately recommend to Town Meeting, there are many complex questions we will seek to answer, to wit:  Is it appropriate to continue to fund town services based on past budgets, or should different priorities serve as the basis for future budgets? If we do not have sufficient monies to fund all services, who determines which services we fund, and how is that decision made?  What weight should be given to growth in numbers, such as the local and regional schools are experiencing? Should areas where we provide more than ‘mandatory’ services be reduced first, so that we can continue to provide a baseline of services in other areas? What services belong in the base budget, and which are more appropriate in an override budget? How large an override, if any, should we propose, and where is the balance point between providing key services and driving residents out of town?

 Of course Town Meeting attendees and the voters will have the final say, but input during the budget formation process will have a far-reaching impact. Please attend one or more of these meetings, listen to what is said, and offer us your insights and inspirations.

The Lincoln Finance Committee
Susan Brooks, Co-Chair
Mary Cancian
Paul Giese, Co-Chair
Pat Phillipps
John Robinson
Al Schmertzler
Robert Steinbrook