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Home My WebLink AboutFinancial Summit IV Jan 2008Q``O MOR w Q x °10 aCN Q Zia z Revise APRIL IT FX 1 N GT Budget Collaboration- Summit Meeting 4 January 28, 2008 7:30 p.m. Selectmen's Meeting Room Agenda 1. Update: Governor's FY09 State Aid Proposal (Attachment 1 and 2) 2. Vote: Use of $461,000 of Free Cash • Comments from Summit Participants 3. Current Status of FY09 Budget Shortfall (Attachment 3 and 4) 4. Options for Closing Budget Shortfall (See Attachment 5) 5. Confirm February 13 Summit Date and Agenda Education: Chapter 70 School Transportation Retired Teachers' Pensions Charter Tuition Assessment Reimbursement Offset Receipts: School Lunch School Choice Receiving Tuition Sub - Total, All Education Items General Government: Lottery Aid Gaming Proceeds for Lottery Gap Additional Assistance Local Share of Racing Taxes Regional Public Libraries Police Career Incentive Urban Renewal Projects Veterans' Benefits Exemptions: Vets, Blind & Surviving Spouses Exemptions: Elderly State Owned Land Offset Receipts: Public Libraries Sub - Total, All General Government Total Estimated Receipts 1 Massachusetts Department of Revenue 1,907,409' 1 0 0 0 0 0 Division of Local Services 253 Attachment 91 0 0 FY 2009 Local Aid 0 0 0 0 0 0 LEXINGTON 0 0 0 0 0 FY07 FY08 FY09 FY09 FY09 FY09 FY09 237868 Difference Cherry Cherry Manager's Governor's House Senate House Budget vs. Sheet Sheet Proposed Proposal Final Final Ways & 17 Cherry 0 0 51 Budget (House 2) Budget Budget Means 0 Sheet 24 24598 24598' 25 Budget 0 0 0 5 6 7 7 0 0 0 258 0 0 0 0 0 0 41989 0 0 0 0 0 0 0 2,365 9 704' 0 14 0 0 0 0 0 9,946,924 0 0 0 0 24 20 20 19 0 0 0 -845 0 0 0 0 0 0 0 5,887,857 6,760,950 7 7 363 7 411 7 0 0 0 257 1 1 1,907,409' 1 0 0 0 0 0 0' 253 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 221 237868 240247' 258 0 0 0 0 0 0 0 0 0 15 14350 14350' 17 0 0 0 51 77111 77111 75 0 0 0 24 24598 24598' 25 0 0 0 0 0 0 0 0 0 0 0 0 0 40 41989 41989' 41 0 0 0 2,229,400 2,303,325 2,365 9 704' 2,325,967 0 0 0 8,117,257 9,064,275 909 9,946,924 0 0 0 Notes: Estimates for Chapter 70, Lottery and Additional Assistance are based on a Governor's House 2 Budget, as proposed January 23, 2008. 2 1/24/2008 / 4:20 PM IF q The Commonwealth of WassacFcusetts .Mouse of Representatives State Yfouse, Boston, 14,4 02133 -1054 Attachment #2 Jay R. Kaufman State Representative 15TH Middlesex district State House, Room 156 Tel. (617) 722 -2240; Fax. (617) 722 -2774 Rep. IayKaufman(affiou. state.ma.us Lexington - Arlington - Woburn www. * aykaufman. com To: Town Manager Carl Valente, Lexington Board of Selectmen, Superintendant Paul Ash, and Lexington School Committee Members From: Jay R. Kaufman Subject: FY 2009 Budget Proposal Date: January 24, 2008 With the filing of the Governor's proposed budget today, it is officially "open season" on debate about how much money the state will earmark for the Commonwealth's cities and towns in the next fiscal year. I am writing to urge caution as you begin the process of shaping your own budgets for the year ahead. Even before financial markets around the world were in retreat, it was clear that the year (and perhaps years) ahead would be challenging for those of us in public life. Needs will outstrip our ability to meet them. I am particularly eager to urge you to be cautious in your reading of the Governor's proposed increases in local aid and local property tax relief measures. Many of his ideas have failed to get legislative approval, so his budget, which anticipates that approval, is an exercise in wishful thinking. We may yet adopt some or even all of his ideas. But we may not, so the funds he is proposing to distribute may simply not be there. 3 Attachment #2 In particular, I continue to have serious reservations about casino gaming as part of an economic stimulus /jobs creation strategy. I'm not convinced that gaming is smart economic policy. I am convinced, however, that to anticipate significant revenues from the sale of casino licenses in the next fiscal year is optimistic at best, foolish at worst. The House Speaker, the Senate President, the chairs of both the House and Senate Ways and Means Committees, and the heads of both the Mass Budget and Policy Center and the Mass Taxpayers Foundation all seem to agree that it would be unwise for you to build your budget on the Governor's numbers. Those numbers are built on the quicksand of unpredictable policy decisions and uncertain revenues. What is clear is that any increase in local aid, Chapter 70, or any other line item in the state budget is dependent on enhanced revenue. I continue to support and advocate for all elements of the Governor's proposed Municipal Partnership Act. However, as you know, two of those elements have become law, but the rest still face an uncertain fate in the legislature. The upcoming budget debate should give us a chance to air opinions and finally take a vote on these and other revenue enhancement options. One last note. I am both proud and happy to report that the Governor has increased the METCO line item by $1.5 million, bringing it to $22,115,313. New METCO funding has been one of my top budget priorities since arriving on Beacon Hill. I've led the successful fight for some significant increases over the years, and now finally have an ally in the Governor's office. What a welcome change. Of course, we'll need to defend this increase in the course of the House and Senate budget debates, but I am cautiously optimistic that you will see an increase in METCO support from the state this year. Please feel free to contact my office with any questions or concerns that you may have. Warmly, Jay Kaufman 4 `O V5 MOg a o 1775 D Town o Lexing Rev. Attachment #3 s f s <Fx;NCI�o� FY 2009 Budget Development Option: Straight Expense Distribution Purpose: To divide revenues according to current expense allocation (Fall Town Meeting) Stea 1: Reconciliation Total General Fund Revenue $ 134 Less 2008 Municipal $ 24 Less 2008 Education $ 61 Less 2009 Minuteman 1 <<< Revised 1/28 Less 2009 Shared $ 39, 802, 546 Less 2009 Capital $ 1 Less 2009 Other /Reserves $ 1 Less 2008 Operating Reserve (FC) $ - Incremental Revenue $ 3 Step 2: Split Incremental Revenue $ 3 Municipal Split (28.5 %) $ 983 School Split (71.5 %) $ 2 Municipal Revenues for 2008 $ 983,328 School Revenues for 2008 $ 2 Step 3: Gap Determination Municpal Request Increment $ 1 School Request Increment $ 3 Less Incremental Revenues $ (983 Less Inc. Revenues $ (2 Municipal Gap $ 325,915 Education Gap $ 1 $ 1,481,066 FY 2009 Base Budgets FY 2008 Municipal Budget $ 24 FY 2008 LPS Budget $ 61 ( +) Incremental Revenues $ 983 ( +) Incremental Revenues $ 2 FY 2009 Base Municipal Bud. $ 25,433,395 FY 2009 Base LPS Bud. $ 63,942,148 `O V5 MOpNi • 1T TS ~c T own o L exz n t0 n Rev. Attachment #4 g � 2w1 s Z <Fx�N19-�� a FY 2009 Budget Development Option: Straight Expense Distribution (WITH FREE CASH of $461,516 added) Purpose: To divide revenues according to current expense allocation (Fall Town Meeting) Step 1: Reconciliation Total General Fund Revenue $ 134 Less 2008 Municipal Less 2008 Education Less 2009 Minuteman 24,450,067 61,469,961 <<< Revised 1/28 Less 2009 Shared $ 39 Less 2009 Capital $ 1 Less 2009 Other /Reserves $ 1 Less 2008 Operating Reserve (FC) $ - Incremental Revenue $ 3,917,031 Step 2: Split Incremental Revenue 3,917,031 Municipal Split (28.5 %) $ 1 School Split (71.5 %) $ 2 Municipal Revenues for 2008 $ 1,116,354 School Revenues for 2008 $ 2,800,677 Step 3: Gap Determination Municpal Request Increment $ 1 School Request Increment $ 3 Less Incremental Revenues $ (1 Less Inc. Revenues $ (2 Municipal Gap $ 192,889 Education Gap $ 826,661 FY 2009 Base Budgets FY 2008 Municipal Budget $ 24 FY 2008 LIPS Budget $ 61 ( +) Incremental Revenues $ 1 ( +) Incremental Revenues $ 2 FY 2009 Base Municipal Bud. $ 25,566,421 FY 2009 Base LPS Bud. $ 64,270,638 0 Attachment 5 Options for Closing Budget Shortfall • Use of Free Cash currently recommended for Stabilization Fund • Use of Free Cash currently recommended for SPED reserve • Use of potential FY08 School Surplus a. To replace proposed FY09 Stabilization Fund recommendation(s) b. To replace proposed FY09Cash Capital shortfall for Schools • Use of LABBB Credits • Reductions to current FY09 budget proposal (Municipal and Schools) 7