Finance Committee Votes Unanimously to Recommend Increase in Regional School Budget 

Report on the Meeting of the Amherst Finance Committee, May 31, 2024

The meeting was held over Zoom and was recorded.

Present: Bob Hegner (Chair, District 5), Cathy Schoen (District 1), Andy Steinberg, Mandi Jo Hanneke, and Ellisha Walker (at large). Bernie Kubiac (non voting member)

Staff: Paul Bockelman (Town Manager), Holly Drake (Comptroller), Athena O’Keeffe (Clerk of the Council)

The Finance Committee continued to discuss how to add $355,000 to the regional school system budget to maintain some of the 20 positions that would be eliminated  under the budget submitted by Town Manager Paul Bockelman. Councilor Mandi Jo Hanneke (at large) said she was frustrated with the lack of information from the Town Manager about possible sources for the extra funds. Councilor Cathy Schoen (District 1) felt that the Town Manager’s suggestion to use ARPA money already slated for solar canopies would be unwise because the canopies will be eligible for federal rebates and are an investment that will  provide savings in energy costs. She, too, wanted to hear of other options.

Comptroller Holly Drake listed three possible sources for the $355,000: ARPA funds, free cash, or reappropriating a portion of the proposed budget to the schools. She thought that any of the three could be accomplished by the June 30 deadline for completion of the budget and that the decision depends on which option is preferred by the Town Manager, the Finance Committee, and the Town Council. Although she is still working on computing unspent funds for the third quarter of FY2024, the free cash accumulated from the first two quarters is over $3 million. The total amount of free cash for the fiscal year will not be certified until the fall, but there would be enough to cover the school’s budget shortfall.

The Finance Committee decided unanimously that they want to increase the regional school budget to six percent over the FY2024 budget, and that the extra funds should come from either ARPA funds or free cash. They instructed Town Manager Bockelman to present them with several options at their June 4 meeting.

Budget Coordinating Group Predicts Increasing Deficits in School Budget
Councilor Andy Steinberg (at large) noted that the Budget Coordinating Group (BCG) heard a presentation from finance consultant Sandy Pooler, who projected deficits in the regional school budgets of over $500,000 per year if held to a three or four percent increase. Those deficits would increase to about $720,000 per year, he said, if an extra two percent is  added to the base amount this year. Steinberg stressed the need for a long-term plan for the school budget and said he is disappointed that Regional School Committee (RSC) member Irv Rhodes’ proposal for a multi-member town/school committee budget stabilization group was defeated at the May 28 meeting. 

RSC member Bridget Hynes commented that the Budget Coordinating Group suggested that a proposition 2-1/2 override may be needed in coming years to deal with regional school and other deficits. Non-voting Finance Committee member Bernie Kubiac said he is strongly opposed to the idea of an override, when Amherst’s property tax rate is already in the top 12 in the state, and our cost per pupil in the schools is higher than in nearby towns. Also, he said, the town just passed an override for the elementary school.