By Peter Gomez (BOF Chair) and Jill Bornstein (BOF Vice Chair)

Recent headlines seemed to dismiss a 2% long range spending cap for town and school expenses as a potential myth, however, managing town budget increases to 2% or below remains a goal of many Board of Finance members given the local and regional fiscal landscape and fiscal realities.  Understanding why the BOF has prompted this discussion now is important – as the new fiscal year begins July 1.

With the 2010–2011 budget process behind us and the difficult task by town employees executing to those plans ahead of us, Town Boards have already begun planning for 2011-2012.  In deliberating 2010-2011 budget requests in March and April, the BOF also examined 3-year budget requests – which, while prepared on a macro level – both the BOS and BOE budget requests project 3% increases or more just to maintain the status quo.  As the chief budget making authority of the town, responsible for long range planning, many BOF members are concerned over the sustainability of year over year operating budget requests exceeding 2% given present and projected fiscal climates.  This explains, why now early in the process,  the BOF is encouraging both Boards to look hard at their numbers, question their processes, identify and pursue cost saving initiatives so that 2% or less may be manageable.  Boards which proactively manage operating budgets help ensure the delivery of efficient and effective town services to residents.

As we enter the new fiscal year, the overall fiscal health of Ridgefield remains good though the BOF continues to closely monitor the slippage in current tax collections stemming from negative pressures residents are experiencing from the present economy and job market.  We are concerned about forecasted growth in property taxes and grand list growth given the “softness” in the real estate market, as well as the overall tax burden small businesses face.  And, while the Town’s Fund Balance remains in the 6-7% range, the appetite for depleting this balance to finance annual operating budgets is limited.

Holding future increases to 2% or below is not an easy task.  Identifying that goal early gives Boards time to work through the best way to accomplish this.  This is not a time for finger pointing or the blame game; this is a time for residents to proactively collaborate with the BOS and BOE to help identify opportunities for spending tax dollars wisely.  And, we need to support the Boards as they examine varied budget and cost saving scenarios rather than prematurely dismissing them.

So no, 2% for the budget year commencing 2011-2012 is not a myth.  It’s a goal based on fiscal realities.  It’s a means by which the BOF aims to preserve sustainable and affordable budgets.  This is a goal on which all Ridgefielders need to work collaboratively so we may preserve a high standard of living and quality education for all.