I am trying to get my arms around the mechanics of the impact of a $2.1 Million cut....and there are a host of assumptions at work....let me try to lay out the ones I see....and I would ask for anyone's help with factual support for how this might play out...
If the State Legislature renews the MBR (Min Budget Requirement).... We need some input on the likelihood of this and possible amendments.... and the Referendum is passed....(not sure how much support it has but for discussion sake let's play this out)
We must cut $2.1 Million Ed Budget... Then here is what I understand will most likely follow....
Then the BOF would meet and lower our mill rate (I assume - does the BOF have to make a Mill Rate Adjustment? Could the Town just keep the Revenue overage?)
Then in FY 2010 ( I assume) we get a note from the State telling us to replenish the $2.1 Million or face penalties... So we have to come up with $2.1 Million and give it to the BOE...
Now what have we accomplished other than now putting the Town in worse financial shape?
The 2.1 Million comes from Townside cuts or by taking it out of our already thin Surplus
And based on the drop in our Surplus combined with the Referendum that passed, the Rating Agencies take a long hard look at our Rating.
So we could end up with less Surplus, a lower Rating and no change in the BOE Budget...
This is going to be quite the Educational Experience....
Stay tuned for more updates...all the best, Mike
Comments(0)