May 2, 2003  The following is an opinion column written by Tim Abbazia, Michael Pollard and Mary Lou Rinaldi, elected Democratic members of the City of Stamford Board of Finance.

Since the budget process is so important to all the citizens of Stamford, we believe it is essential to share our rationale for changes made by the Board of Finance to key areas of the City and Board of Education budgets.   We were presented with an operating Budget of $366,903,162.   After a detailed review of each department's budget, analysis of supporting documentation, and deliberations, we have submitted a revised budget of $359,153,870.  

Through our budget hearings and from discussions with various city and Board of Education managers, it is our determination that we must achieve the same or better services with fewer dollars. It is our sworn responsibility to challenge city leaders and department managers to continually optimize each tax dollar by finding ways to deliver services more efficiently. For Stamford to remain an affordable city to all citizens this must be part of the planning and actions of all city departments.   Our decisions related to the budget for the upcoming year are consistent with this philosophy.

Board of Education - $5,740,000: The Board of Finance awarded the Board of Education a Budget of $185,265,181.   This is an increase from the current year of $7,983,181 or 4.5%.   A key component of every Budget is teachers' salaries; the Board of Education settled a 3-year contract that provided for salary increases this year of approximately 4%.   This provides a solid foundation for an educational plan next year that doesn't increase class size or trigger staff reductions.

The Board of Finance has been actively assisting the Board of Education in exploring initiatives that achieve ongoing cost savings while maintaining or improving the quality education delivered to all of our students. We have initiated a review of our Special Education services that are budgeted at $21,766,750 in the upcoming year.   Some of the top

educational consultants in the nation have expressed interest

and we are hopeful of providing improved programs while reducing costs by 5% (over $1 million).

There are several other initiatives being explored that could restructure how services are provided and reduce the required resources.   The Board of Finance and Board of Education have scheduled to meet with an educational consultant to discuss the scope of work needed, the goals for the programs addressed, and what resources are needed to execute these plans.

We recognize the efforts of the Board of Education in achieving savings in Healthcare.   Moving to a fully insured program with a new provider and verifying enrollment has eliminated the risk of a deficit and significantly reduced the funds required in this area.

Finally, we applaud the actions taken by the Board of Education to achieve cost reductions and better manage

finances.   The implementation of last years audit

recommendations, hiring of a new Finance Director, and improving the information provided in the annual budget presentation all have proven effective.    The Board of Finance expects the Board of Education to achieve a surplus this year and is committed to applying the entire amount to next years budget.

Risk Management -   $300,000:   The city's Risk Manager has been aggressively implementing new preventive policies and has encouraged department managers to realize their responsibility to better manage safety.   In light of their success in this fiscal year, we will ask for continued improvement.

Medical Insurance -   $250,000:   The city has received new bids, both for self-insured and fully insured policies.   There is a possibility that the best bid will be slightly favorable to the budget request.   In addition, the Board of Finance expects the city to execute a re-enrollment exercise that may reduce the number of covered persons thus reducing costs.

Police Department - $150,000 & Fire Department - $75,000: These are department-wide reductions that can be obtained by better managing overtime, unexpected vacancies, or adjustments to any other account - all at the departments' discretion.

Snow Removal - $100,000: This account was budgeted at the average of the last five years.   We reduced the amount to limit excess funds if we experience a mild winter.   Additional funds, if necessary, can be transferred from the contingency account.

Haulaway $100,000 & Recycling $75,000: This has become a more competitive market with many more companies competing for these services. Since the current contracts expire this year, we expect more competitive rates and future cost reductions.

Contingency - $250,000 : We have reduced the contingency account by $250,000.   This leaves a balance of $750,000 that is necessary due to the aggressive assumptions in certain accounts (some of which are mentioned).

As a result of our actions, the total tax levy increase is likely to be less than 2%.   We're confident that the revised Budget will provide the necessary resources for the City and Board of Education to continue delivering the quality of services expected by the residents of Stamford.