Tisbury finance committee chairman Jeff Kristal (left): “We’re just asking to stretch it out a little bit longer.”
Holly Pretsky

At Request of Two Towns, High School Trims Budget

<p>Heeding a request from two towns with strained budgets, the regional high school committee voted Monday to cut some $90,000 from its budget.

Heeding a request from two Island towns with strained budgets, the regional high school district committee voted Monday to cut some $90,000 from its budget originally earmarked to cover future liability for employee post-retirement benefits.

Representatives from Tisbury and Oak Bluffs finance committees attended the meeting to ask for the cuts.

Tisbury finance committee chairman Jeff Kristal said his town has had to put its retirement benefits liability on hold too.

“We’re trying to do it just as aggressive as the school is, but we reduced ours as well today,” Mr. Kristal said. “We’re just asking to stretch it out a little bit longer.”

Oak Bluffs finance committee chairman Bill Vrooman said his town is anticipating increased spending on high school projects in the near future, including a campus overhaul.

“We know you’re going to present a warrant article [in the spring for feasibility study money] for the building,” Mr. Vrooman said. “We know you’re going to present a warrant article for the track. The town has already turned down our own town hall. There’s a lot of pressure right now in Oak Bluffs.”

Finance committee member Maura McGroarty said setting aside money for post retirement benefits should remain a priority, but the amount needs to be lowered. “I actually support this OPEB, but the budget needs to be cut. You have to find that balance. Oak Bluffs is going to have to do it as a town,” she said.

Other post employment benefits (OPEB) mostly refer to health insurance for retired school employees, and the school is working to pay down its future liability while covering existing retirees. The liability is estimated to be about $32 million.

The committee wrestled with the last-minute reduction.

Jeffrey (Skipper) Manter 3rd questioned the appropriateness of rehashing the OPEB obligation after the committee had already made a decision at a previous meeting. The committee is working to reach a milestone where the liability ceases to grow. They hoped to reach that point in three years, then five. Monday night, they pushed the goal farther out to seven years.

“We came to an agreement that we thought it was important to address this OPEB obligation upfront,” Mr. Manter said.

Superintendent of schools Dr. Matthew D’Andrea said the administration had budgeted conservatively, pointing out that most budget increases came from post-employment benefits, health insurance, and residential care for students with special needs, not educational programs. Educational program increases totaled 2.1 per cent.

“We are not spending like crazy. We are not,” Mr. D’Andrea said.

The new budget passed 7-2 with Mr. Manter and Robert Lionette voting against the change.

Assistant superintendent Richard Smith called it a good decision.

“I think as a group we need to listen to the towns and be sensitive to what they’re saying, and a gesture like this demonstrates that we hear them,” he said.

With other savings from health insurance projections, the 2020 budget was reduced by more than $260,000.

The total budget is now just over $22 million, with total town assessments of $19.2 million.

Comments

Submitted by Anonymous (not verified) on Wed, 02/13/2019 - 12:53

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gina Menemsha/nyc

It seems that all School operating budgets can guarantee to increase annually. Assuming the Federal Reserve inflation target is 2+% School budgets don't consider that dubious fact.. I feel sorry for any School Committee member , its a thankless task having to study & understand the Superintendent's annual Budget..Many times I feel the Superintendent expects an easy "rubber stamp"approval by the Committee w/ very little input from the towns paying the freight.. I see OB & VH stepping up to the situation as a very first positive & realistic move.

Submitted by Anonymous (not verified) on Wed, 02/13/2019 - 21:43

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J.P. St.Germain Vineyard Haven

I think we need an explanation on the magic budgeting process. It reads as if this group decided to ignore the fact that it has a future liability to meet a budget target. Seems like fraud to me. The decision to not fund these obligations does not make them magically disappear.

Submitted by Anonymous (not verified) on Mon, 02/25/2019 - 16:49

In reply to by Anonymous (not verified)

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Trying to Understand. Edgartown

J.P., trying to understand your comment? Are you talking about the OPEB line item in the budget? The MVRHS is already funding that line item really above and beyond what is necessary. This evening the MVRHS committee decided to lower it by a mere $50,000. They're still funding that line item by more than 1 million.

Submitted by Anonymous (not verified) on Tue, 02/19/2019 - 03:50

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John Aldeborgh Edgartown, MA

We've been a home owner in Edgartown since 1994, since then our property taxes have increased more than 500%. I now pay more in taxes on the property than my entire annual salary (pre-taxes) from my first full time professional job out of college. The School (and towns) need to be doing zero base budgeting and not simply rolling over every program. Also, ignoring unfunded pension liabilityes is morally wrong and I would question if it's legal. I'm retiring in two years and can't afford my taxes to increase another 500% over the next 25 years, or I'll be paying $60K in taxes on a truly modest 2000 sq ft cape, or rather someone else will. We need some serious disciplined management and some hard decisions, this is unsustainable and morally wrong.

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