As the Board of Education begins the process of setting its budget for next year (2010-2011), I thought it would be useful to learn more about how the budget actually gets determined.
The following is a guest post by Fred Wilms, Chairman of the Norwalk Board of Estimate & Taxation.
The City's Operating Budget process can come across as confusing and sometimes perhaps frustrating. In this posting, I outline the process in three parts: the budget time line, some background on the key budget players, plus answers to a few frequently asked questions.
Operating Budget Time Line:
The City fiscal year begins July 1. Norwalk shares this fiscal year cycle with other Connecticut towns along with the State of Connecticut. To be ready for July 1, the City starts the Operating Budget process the prior October. The Director of Finance requests all departments to submit their proposed budgets by the end of November. The Board of Education (BoE) submits theirs the beginning of January. The Director then collects these requests, and after receiving overall direction from the Mayor, prepares a recommended budget.
On the second Monday of February, the Director of Finance submits his recommended Operating Budget to the Board of Estimate & Taxation (BET). The Common Council receives a copy the next day. From the end of February through the end of March, the BET works line-by-line on the Budget. The BET conducts workshop sessions with each individual department, including the BoE.
On the 4th Tuesday of February, the Common Council establishes a spending cap for the Operating Budget (as per standard Council procedures, the Council Finance Committee will have met prior and have made a recommendation to the entire Council). By law, the BET must set total spending at, or below, the Council cap.
At the end of March, the BET conducts a public hearing on the first draft budget. This budget includes line item detail for all expenditures and revenues along with the total budget limit for the BoE (according to State Statute, the BET can only establish the total budget for the BoE; the BoE line-items it’s own budget). This public hearing is held in the City Hall Concert Hall and typically attracts between 100 – 500 attendees.
On the 1st Monday of April, after taking into account the public comments, the BET presents a proposed Operating Budget. And by the 3rd Tuesday of April, if the BET cannot meet the Council cap, the Council may choose to amend it. Over the past four years, the BET has typically been about $1 million below the Council cap.
On the first Monday of May, the BET adopts the final Operating Budget along with the tax rates. The BoE receives formal notice of its total budget limit. In June, the BoE reconciles its budget, line by line, to that of the BET budget limit.
Operating Budget Key Players:
The Mayor. Norwalk’s Chief Executive Officer. Among his many other responsibilities, the Mayor establishes the overall direction for the entire Operating Budget.
Director of Finance. The Director reports directly to the Mayor and is responsible for preparing the initial recommended budget. The Director is also the staff person for the BET. The current Director is Tom Hamilton.
Board of Estimate & Taxation (BET). The “Fiscal Authority” for Norwalk, as defined by Connecticut State Statutes. The BET appropriates all City spending, establishes the tax rates and controls the Rainy Day Fund, among other financial responsibilities. This seven member body is appointed by the Mayor and confirmed by the Council. The Mayor is a full voting member and by City Charter the BET party majority matches that of the Mayor.
Common Council. The City’s legislative body. Until the mid 1990’s the Council had no role whatsoever with the Operating Budget. This was changed by charter revision to give the Council an appropriations cap, which the BET cannot exceed. This point tends to be confusing to many members of the public. The Council does not have the power of the purse – instead the BET does. In government there are two separate functions: Authorization and Appropriation. The Council authorizes (approves) things, like contracts and agreements. The BET however appropriates, which means it makes funds available. This point is driven home on the top of page 1 of every Council Agenda, which states: “All Common Council actions taken at this meeting to approve expenditures and contracts or accept bids and other proposals requiring the expenditure of City funds are subject to the availability of funds”.
Board of Education (BoE). The nine member body that the voters entrust to have authority over the entire school system. The BoE hires the Superintendent and establishes overall policy & direction. The BoE is the body that is rightly held accountable for both the successes and failures of our schools. As per State Statute, the BoE has complete discretion to line item its budget as long as the total does not exceed the BET limit.
BoE Finance Committee. Happily the BoE, like the Common Council, now has a functioning committee system. All governing bodies benefit from committees establishing high levels of expertise within their specific functions. It is expected that budget issues would go through the BoE Finance Committee before they are acted upon by the entire BoE.
Frequently Asked Questions
Below are questions most often heard from the public, along with some responses:
There are so many meetings going on at City Hall. Which one should I attend to speak my mind on the budget?
The best one is the BET public hearing at the end of March. Another good one is the Council cap meeting the fourth Tuesday of February.
At these public meetings, if I speak, what should I say or how should I present myself?
There is no one right way, but the most effective speakers keep their remarks within 3 minutes and stay focused strictly on the issues. They avoid personal attacks or questioning other people’s motives. On a side note, it is OK to write out your comments beforehand and simply read them.
Does the BET really listen to the public comments?
Yes. Last year, based on public feedback, the BET reinstated four positions that were previously planned for defunding. Practically speaking of course, there is no guarantee that everyone’s views are going to implemented. However please know that at a minimum, you will be treated seriously and respectfully.
Do I need to wait until the end of March to express my views?
No. Please feel free to email anyone on the BET at any time with your questions or opinions. My personal email is fredwilms1@optonline.net, and I respond to every email, phone call or letter that I receive. I look forward to hearing from you.
Sunday, November 29, 2009
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This information may be a bit dry but it's super important. Thank you Moina and NorwalkNet for letting us hear about it right from source.
ReplyDeleteNow it's up to all of us to dissect the BOE's budget request and urge the mayor and the BET to invest in the city's education rather than just maintenance style support.
Fred, excellent summary of the operating budget process.
ReplyDeleteAnother point that might be useful: In past years, the Finance Committee of the Common Council held at least one public hearing on the budget cap prior to the March public hearing organized by the BET.
And in early January, the BOE generally holds two or three information meetings on the budget; the public is always invited to present views at these meetings. Also, the BOE will probably hold its own public hearing on the operating budget in late January or February.
There should be ample opportunities for the public to weigh in on the operating budget. And with the publication of preliminary budget recommendations online, this year's discussion should be quite fruitful.
One final point: The above timeline is for the operating budget; the capital budget undergoes an entirely different process, with the Council and BET sort of reversing roles.