Following a sometimes contentious budget season, a group of Cape Elizabeth citizens is preparing to ask town officials to “think outside the box” and change how they approach budgeting.
Cape For All, a grassroots group dedicated to seeing tax dollars spent wisely by the town, wants the town to consider moving to a three-year budget plan from its current one-year plan.
That would fortify the town against budgetary surprises, said Bill DeSena, president of Cape For All.
“The purpose of planning such as this is to curtail frivolous spending,” DeSena said. “We’re going to try and get them to think about doing this, try to get people to start thinking outside the box.”
Cape For All’s idea stemmed from an 11th-hour school budget change, when a state funding cut left the taxpayers to pick up a $161,000 tab.
The taxpayers came up with the money, but it meant raising the property tax rate by 11 cents, from $17.44 to $17.55, or 0.6 percent. The school budget prior to the surprise funding cut would not have raised the tax rate.
DeSena said his group believes the budget situation will be worse for 2010-2011 and could become a larger issue in 2011-2012 as the state Department of Education has already announced a shortfall in funding after federal stimulus money runs out.
“The Department of Education has warned all school districts about this,” DeSena said. “And we all know, unless there is a miracle, we’re going to have a negative revenue stream.”
Town Council Chairman James Rowe said he and his fellow councilors realize the next few budget seasons could be tough.
He points to this upcoming November’s referendum where Maine voters are expected to pass an excise tax reduction, which could lead to a 40 percent revenue loss for Cape Elizabeth.
“You have to be preparing, I think, for what we know in our hearts is going to happen,” Rowe said. “Even at the state level they are referring to it as ‘the cliff,’ which refers to the day when the stimulus package isn’t going to be there and we have to fend for ourselves, and it certainly warrants preparation.”
DeSena said his group also wants the town to consider using professional salary and benefit negotiators when dealing with the school unions.
His group, DeSena said, is upset that the Cape Elizabeth unions negotiated 3.5 percent annual cost-of-living raises and 1.5 percent step raises for longevity.
DeSena said the town can’t afford that in the future.
“Right now it is the School Board and the superintendent that negotiates,” he said. “This is not meant to be a negative or adverse statement, but it’s unfair to ask them to do something like this. They’re not experienced in this and they’re going up against very seasoned and professional teamster-type negotiators.”
Rowe said he can’t comment too much on Cape For All’s goals because he doesn’t have enough information. He would, however, welcome hearing from the group.
“I’m willing to listen to anybody at this point,’ he said. “Anyone who believes they have good ideas, I’m certainly willing to listen to.”
Cape voters on May 18 approved the school budget of $19.3 million. The municipal budget is $8.5 million for this year.
DeSena said there is no meeting yet scheduled to meet with town officials to propose his group’s ideas.
“I believe we can come together as a town and adopt a solution to future budget woes,” DeSena said. “That’s what we’re really advocating. We’re a small town and we hope that we can get everyone together to effect positive change.”
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