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What is a Default Budget? |
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Written by Archie Auger
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Newfound is an SB 2 District; it is also a District that voted a number of years ago to adopt RSA 32 for budgetary purposes. The voters have placed control of the development of the school budget in the hands of a Budget Committee subject to the wishes of the voters at the first deliberative session and voting in March by the district voters.
The role and purpose of the budget committee is clearly defined in RSA 32. As a result of opting to be an SB 2 District we must also look to RSA 40:13 for additional information on budgetary matters to be placed before the voters. The Default budget is defined in RSA 40:13.
(b) ""Default budget'' as used in this subdivision means the amount of the same appropriations as contained in the operating budget authorized for the previous year, reduced and increased, as the case may be, by debt service, contracts, and other obligations previously incurred or mandated by law, and reduced by one-time expenditures contained in the operating budget. For the purposes of this paragraph, one-time expenditures shall be appropriations not likely to recur in the succeeding budget, as determined by the governing body, unless the provisions of RSA 40:14-b are adopted, of the local political subdivision."
The Default budget is used if the budget proposed by the action of the First Deliberative session is not accepted by the voters in March. More often than not in SB 2 communities the default budget is less than the budget proposed at the first deliberative session.
Currently the governing body, the School Board, develops the Default Budget and this year they have proposed a default budget about $400,000 above the Budget Committee's recommended budget and close to $200,000 more than what they themselves determined is needed to operate the schools for the 09/10 school year. That logic is difficult to follow. Voters will have the following choice in March either vote for $22,286,145 or the default at $22,479,157. The Budget Committee's $22,089,698 recommendation was turned down by six or so votes at the First Deliberative session.
The Board increased the Default Budget in eight line items above what they determined would be sufficient. Of the $193,346 in the eight areas heating oil was increased $66,000 and fuel for district busing and other transportation increased $75,000 above what is needed as determined by the School Board; an additional $141,000 dollars to be added to the $300,000 contingency already in the budget.
Last March the voters defeated the regular budget and the Default Budget came into play for the 08/09 school year. In late May/early June 08 it was determined the default budget had an $180,000 dollar error that should not have been in it but had to be raised by taxes. Of that amount $163,666 has been "set aside" to be returned to the towns of the district.
Control of the Default Budget needs to take place! Please vote yes on article 6 to have the Budget Committee determine the Default Budget. |
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