New Ipswich is grappling with the implications of a year ahead under a default budget.
At the polls in March, voters rejected the proposed $4.03 million budget, setting the default budget at $3.86 million. It was not the only article to fail. Voters said “no” on several monetary warrant articles, including capital reserve and expendable trust additions, communications upgrades for emergency services, support for the New Ipswich Library, and funds to add a seventh police officer.
During a joint meeting of the Select Board and Finance Advisory Committee on Tuesday, Select Board Chair Jason Somero asked the advisory committee members what their takeaway was from the voting.
Committee member Bruce Ruotsala said the financial pressure seemed to extend far beyond New Ipswich, with several towns in the state failing to meet their budgets, suggesting that New Ipswich’s budget “went down with the tide.”
“It does give you a glimpse into what the priorities of the residents are,” said Jason Somero. He said some of the articles that failed have, in the past, been widely supported, such as capital reserve additions and the New Ipswich Library, showing a shift in sentiment.
“What I heard is people are hurting,” Somero said.
Committee member Luke Moran said that, as other costs rise, under a default budget, residents know that they must accept cuts and the ramifications, such as less maintenance, and holding onto things like vehicles longer.
“It’s obvious the taxpayers have spoken,” Moran said. “They know things are going to have to get cut.”
One issue the boards discussed was whether there was still room in the default budget to give raises to employees this year. The proposed budget had included a 2.8% increase.
Resident Alan Doyle said that under a previous default budget in 2014-15, the town had received legal advice that it could not give employee raises. Town Administrator Debbie Deaton said more recent legal advice had contradicted that.
Jason Somero said that, if allowable, he wanted to continue to discuss whether raises were possible this year. He said the town had worked to stay at a competitive pay scale, and he didn’t want to see it come “crashing down,” saying employees were the “backbone” of any organization.
Deaton said wage increases were important to retention, adding that “it costs a lot more to replace someone than to give them 2.8%, which is not even the cost of living.”
The board discussed the raise structure and whether an across-the-board adjustment or increases based on merit was the better route.
Selectman Joe Somero said that he was in favor of rewarding employees on an individual basis, whether through merit raises or incentives.
Parks and Recreation Department head Mindy Buxton said that the town currently works on a tiered step program, which she said she likes as a system, as it eliminates issues with favoritism or nepotism.
The board did not take any official vote on the matter of salaries, but agreed to continue discussing the issue in future meetings.
The role of the committee moving forward
Jason Somero asked the Select Board and finance advisory committee members if changes were needed in the role of the committee.
Somero said the current iteration of the committee was formed four years ago at a time when several department heads were new on the job. He said its main role was to help department heads understand the process and to be a point of communication for the Select Board.
“I ask the advisory committee this: Is it time for some kind of calibration?” he asked.
Committee chair Stephanie Subocz said she would be interested in a more active role in crafting the budgets, rather than being a “water carrier” ferrying information between the department heads and Select Board. She said she had a lot of experience with contracts and would like to review some of the contracts before the town.
Committee member Bruce Ruotsala noted that final decisions made about the budget reside with the Select Board.
“I have all kinds of crazy ideas, but I’m also not the executive,” said Ruotsala, adding that the committee is in a role where they can do the homework and present it to the Select Board, but can’t make the “hard decisions.”
Committee member Jim Karr said, to that point, that if the Select Board sets clear budget goals at the start of the season, it gives the committee more ability to have those conversations with department heads.
Committee members also expressed interest in helping to define roles, job descriptions and processes to find efficiencies, but said that would be a multi-year project, and happen largely outside of budget season.
Jason Somero said he agreed that it was not the role of the advisory committee to direct department heads on their budget, but said deeper conversations about budgets would be welcome.