By Ruth M. Lyon
Turley Publications Reporter
SPENCER- David Prouty High School Superintendent Ralph Hicks appeared to bear the brunt of critical questions in a meeting held Saturday at Spencer Town Hall. Meeting a barrage of questions from selectmen and finance committee members from both towns, he presented figures reflecting efforts to hold the line on school costs, but expressed his own frustration with questions that appeared to have no answers.
A financial task force organized last year by Spencer Town Manager Paul Guida met Saturday to confront joint issues regarding the David Prouty High School (DPHS) District, which encompasses the school systems of Spencer and East Brookfield. The group comprises members of the towns’ boards of selectmen, school and finance committees.
DPHS Committee member Peter Rock of East Brookfield, chair of the committee, had in December sent a letter to all members, recommending that the task force publish a point of view, a statement of intended behavior or action plan, or disband.
In that letter, Rock suggested that the committee develop a budget which assumes that state aid for FY10 remain funded at the FY09 level, demonstrating how obligations would be met. He further recommended the committee develop a second budget assuming a state aid reduction of 10 percent in all categories. Finally, noting the general financial climate in both towns, he said, “we should do all in our power to minimize reductions in community services and do so without placing an excessive financial burden on our citizens.”
He requested the budget format be completed and reported to the committee by mid-January in order to move forward with the task force’s action, or disband.
In the weeks following receipt of that letter, amidst the reality of crippling storms and holiday breaks, each town’s finance and school committees and boards of selectmen have faced increasingly bleak reports and prognostications from state and other officials.
Rock called Saturday’s meeting of ten members from the two towns to order at 9 a.m. In the audience were East Brookfield’s Selectmen Chair Leo Fayard and Spencer Selectman Donald Berthiaume; few others were present, although local access TV was available at the time.
East Brookfield’s Finance Chair John Rossi presented his town’s position. Explaining that East Brookfield had made extensive budget cuts in FY08 in order to compensate for its school assessment, he said a 10 percent cut for FY09 would amount to $45,000 from the town’s total budget of $3,800,000.
“In order to balance our budget last year, we cut $100,000 from our budget, used $100,000 from free cash and $8,000 from the overlay fund,” he said. “We’ve had to adjust for increased costs for fuel, electricity, such items as paper goods. We have, and anticipate to have, less revenue from new growth, excise taxes, any growth-related revenues. We’ve already cut positions in departments as low as we can cut them and provide the minimum of services we need. We have four highway and four police personnel. We have two EMTs; if we lose one, we lose our state certification. A salary freeze for town employees is likely. If we can level-fund we can make it, if not, we’ll have to cut services. We cannot afford any additional school assessments.”
Spencer Town Manager Paul Guida reported much the same outlook.
“We took a tax override last year to maintain town services,” he said. “The state budget today cut Spencer by 10 percent. When the people suffer, the state suffers. The capital gains fund, rainy day fund, income taxes, down, down, down. This has been a bad winter, the town is hard pressed to maintain services. We’re doing everything we can, asking everyone for ideas. If we don’t have it, we can’t print it, like the Feds. The stimulus package will amount to about $3,000 per person in the country – we’re mortgaging our future.
“We’re not looking at level funding, but hoping to level-fund education. We haven’t yet heard the figures from Bay Path; that assessment will probably be increasing, as more pupils will be going there. Everything is on the table. We’re working with Dr. Hicks…”
Superintendent Hicks, in his turn, remarked that “this is the first year we’ve had any substantial surplus.” (That surplus had been referred to by Peter Rock in a recent newspaper interview, in relation to Spencer’s 2008 override.)
“This is not unusual in a school district,” Hicks said. “Other school districts have as much as $2 million. The state now picks up 65 percent of school funding; but that’s due to change. We’ll be required to pay 50 percent.”
Hicks went on to list cuts in his current budget, including cuts in cleaning staff, a guidance counselor retiring without replacement, re-allocating staff.
“We’ve gone from 320 employees to 294,” he said, listing student enrolment of 551.
As has been the commentary from town officials in most communities, the subject of insurance benefits for school employees became foremost.
According to Hicks, health insurance for school employees and retirees amounts to $4 million. He maintains that contractual obligations require that retirees from the DPHS system pay only 10 percent of insurance costs. Rock and Guida refute that allegation, saying this is not state law.
Guida, Rock and Fayard individually confronted Hicks on the current state of contractual issues with DPHS employees, maintaining that the proportion of insurance costs borne by the towns could and should have been addressed in years past.
“You people are insulated from the real world,” Fayard said. “This has been a problem for several years. Did you people just learn of this crisis? You’re dealing with smoke and mirrors here. What revenues other than reduction of teaching staff are you coming up with? I’m no economist, but even I know you know you don’t use your savings to pay your bills.”
Fayard went on to suggest that numerous companies are re-examining contracts and re-negotiating terms, in the light of current economic conditions. He also commented that, in recent years, the school district has done nothing to explore reducing operating costs.
“Every company is doing what they can, including bigger insurance co-pays,” he said.
Hicks’ response was that a three-year contract is in force, and that it is enforceable unless negotiators are willing to reopen it.
“What upsets me is that when you talk about cuts you speak always of teachers,” Fayard said. “Why do we always look first at teachers – why not support staff or other places? I think you should look deeply, as we had to do last year. East Brookfield had to cut $100,000 from our budget. You’re playing on the heartstrings of the people.”
Spencer’s Seth Thatcher, a selectmen and former finance committee member, and Tony Pepe, finance committee member, spoke in favor of lesser taxpayer contribution to teacher insurance, and also in support of stronger school committee and taxpayer action in curtailing such costs. “We can’t ask the taxpayers to give up pay raises and other benefits without a quid pro quo,” Thatcher said.
He went on to comment that he feels it is the function of the legislature to be leading, to do the right thing even if it is not the popular thing. He suggested that board members come up with a draft.
Rock stated it is his wish that each board come up with a draft of a resolution to result in positive action on the problems jointly faced by members of the two communities.
As lunchtime approached, with no definitive action having been taken, Tony Pepe said, “this committee is going to cobble together a resolution. The iron is hot.”
Guida responded with a motion to re-convene Saturday, Feb. 28 at Spencer Town Hall. It was so voted.
In later conversations, Guida and Fayard stated their disappointment with the meeting, but expressed hope that the next meeting would produce positive action. Rock remained less sanguine.
“These are complicated issues; there’s the D word – depression,” he said. “There’s greed and corruption everywhere. Small greed and big. I’m the veterans’ agent in three towns. I see veterans in need, more of them looking for help every week. I’ve been bringing up these issues for some time. The school committee in the past would not address them. You need the full support of all school committees to deal with the insurance issues. I’ve had no support – couldn’t get a second to my motions.”
Spencer selectmen added their voices.
“I’m a contractor, with only three weeks’ work ahead of me,” Berthiaume said. “I own two houses, trying to figure out which one I’ll lose if I have to.”
“I have no appetite at all for new taxes,” Thatcher said. “Hotel and meals taxes still come out of peoples’ taxes. We need to look carefully at how we spend our money.”
Guida, stating that “it’s not a one-year problem,” made that following promises:
“I will not retire; I’m going to see this through. I will not take a raise. I will meet with GIC (General Insurance Corporation) regarding our insurance problems. I will continue to cut costs and develop means of cutting costs. I will save wherever I can.”