But a question mark looms over the biggest-ticket item in the spending plan — funding for the Board of Education.
The Aldermen’s finance committee met Tuesday to decide on a recommendation for school spending to send to the full board.
But they essentially punted the decision on school funding, opting instead to pursue a “collaboration” with the Board of Education on possible insurance savings.
Previously
In February, the school board voted to request $2,040,612 million more in year-over-year funding, which would represent a 6.79 percent increase over its 2015 – 2016 budget of $30,053,095.
The next week, Mayor David Cassetti presented a budget proposal calling for a $30,805,484 budget for the Board of Education, with a 2.5 percent, or $752,389, increase in school spending.
He conditioned that figure on school employees accepting changes to their health insurance plans to save $600,000.
The city’s Board of Apportionment and Taxation voted unanimously to send the mayor’s recommendation for school funding to the city’s Aldermen, who have ultimate say on the spending plan.
But during the BOAT budget review, a problem surfaced. Cassetti’s budget proposal envisioned a slight tax decrease. The tax board budget had a bottom line of $63,693,382, which would actually increase property taxes slightly — about $60 for a person with a house assessed at $150,000.
Article continues after the full budget approved by the tax board.
Boat Final Approved Budget FY 16 17 by ValleyIndyDotOrg
Cassetti blamed William Nimons, the city’s comptroller at the time. He said Nimons prepared the budget with an $800,000 “hole” in it, without accounting for things like raises the city had negotiated recently with certain employees and other items.
Nimons is also president of the Board of Education, and had played a prominent role in the mayor’s administration. He was a leading figure in Cassetti’s transition team when the mayor, a fellow Republican, swept to power with a 9 – 5 majority on the Board of Aldermen in 2013.
Days after the tax board vote Cassetti dismissed Nimons as the city’s comptroller, citing the budget and a perceived conflict with Nimons’ school board role as his reasons.
Nimons called the mayor’s reasons “bogus,” referring to both the alleged budget hole and the conflict of interest. He said he prepared the budget properly and pointed out he was school board president when appointed as comptroller in the first place.
Cassetti’s move sparked fallout that deepened a rift among Republicans that first surfaced last December, when Second Ward Alderman Lorie Vaccaro, a close ally of the mayor, challenged the re-election as Board of Alderman President Phil Tripp.
Insurance Savings?
In the weeks since, budget discussions have served as a flashpoint for the GOP squabbling.
Last week, for example, Cassetti accused two Republican Aldermen of boycotting a meeting to discuss possible health insurance savings.
During Tuesday’s meeting Vaccaro, the finance committee’s chairman, said that he and fellow Aldermen want to give the school district as much money as they can — but also want to give residents a tax decrease.
He said the only way to accomplish that would be if the city and school district move to a “self-funded” insurance plan.
Vaccaro then asked Joseph Coppola to explain.
Cassetti hired Coppola, a lawyer who served as corporation counsel in the administration of Republican Mayor Anthony Staffieri in Derby, as a budget consultant after Nimons’ dismissal.
Coppola went over the presentation from last week and said the city can save money moving to self-funded insurance.
First Ward Alderman Charles Stowe asked if anyone from the school district wanted to weigh in.
During the ensuing discussion, Nimons then asked to address the Aldermen.
He told the Aldermen that the school board isn’t ready to commit to self-funding its insurance.
He said the school district is open to the change — but disputed in detail Coppola’s conclusions about whether the city can save money in the 2016 – 2017 budget by making the switch.
Nimons cited a number of towns that he said had mishandled transitions to self-funding insurance, including Derby, Coppola’s previous employer.
“No matter what the spin is you’re getting from everybody, it’s wrong,” Nimons told the Aldermen, calling more optimistic numbers “hocus pocus.”
“We will do it on our terms,” Nimons said. “We will not do it on your terms.”
Vaccaro asked Coppola to respond to Nimons’ concerns.
Coppola disputed Nimons’ conclusions.
The committee of Aldermen then voted unanimously “to pursue a collaboration between the Board of Education and the city to self-fund insurance.”
Click play on the video at the top of the story to see the vote, and a request from Nimons and a lawyer representing the school board to clarify the motion.
Subsequent discussion centered on what will happen to the overall city budget.
Vaccaro suggested delaying setting the property tax rate until the Aldermen meet with the school board and hammer out the insurance question.
Corporation Counsel John Marini said the city’s charter calls on Aldermen to meet Thursday to make a decision on the budget, but that they could recess the meeting to see if progress can be made on the insurance question.
Merlone noted that by June 1 she’d have to let more than 40 teachers given layoff notices in February whether they’d actually lose their jobs, per the school district’s contract with its teachers union.
Vaccaro said he hoped city officials and school officials could have a meeting of the minds before then.
He asked for someone to make a motion “to recess the meeting of setting the mill rate until a joint effort is completed by the Board of Ed and the Board of Aldermen.”
Fourth Ward Alderman Joseph Jeanette did so. The motion passed unanimously.
After the meeting, Mathew Hough, the president of the Ansonia Federation of Teachers, urged officials to resolve the question marks over school funding sooner rather than later.
“My biggest concern is that this process is going to go on for quite awhile,” Hough said. “And we have teachers that were given pink slips, told that they might not have a job next year. If they’re not going to know until June 1 or later, then we’re going to lose good teachers, because they’re going to look elsewhere to try and find employment.”
He said the teachers are willing to discuss adjustments to their contract but haven’t yet actually voted to do so.
“We’ve had discussions,” Hough said. “We’re moving towards an answer but it takes time.”
