Now that the Board of Finance has made its budget resolutions for FY2024 that will be presented to voters at the May 2 Annual Town Meeting (ATM), GOOD Morning Wilton is taking a closer look at the factors and events that have shaped the FY’24 budget process and the forces that could still impact the budget and mill rate — and ultimately, Wilton taxpayers — going forward.

One of the key questions is whether Wilton voters will turn out and cast their ballots. With highly motivated constituents on opposing sides — such as those urging lower mill rate increases versus those in favor of higher investment in Wilton’s schools, or those who want to fund a new turf field versus those who object to it — turnout will be critical.

As has been the case for the last several years, with less than 15% turnout, the budgets recommended by the Board of Finance would automatically pass. But this year’s stakes seem higher, and under Wilton’s Town Meeting form of government, it will soon be time for voters — not boards or elected representatives — to determine the budgets for the municipality and the school district.

Climate Change (In The Budget Sense)

As early as last July, First Selectwoman Lynne Vanderslice expressed several concerns about what she called “the climate” in which the municipal and school budgets would be developed.

The most immediate budget challenges were the result of dramatically higher interest rates and persistently high inflation, impacting everything from wages to heating oil and more.

Vanderslice also warned of potential risks to the budget from any new state legislation that could move forward in the latest legislative session and lead to unforeseen new costs (or reduced state funding) for the Town, such as for transit-oriented development, school regionalization or affordable housing programs.

Taking a longer view, Vanderslice has alerted taxpayers to the potential impact of the upcoming property revaluation — postponed from 2022 until 2023 — which is likely to shift more tax burden to homeowners, as Wilton’s home values have significantly increased since the last valuation while office building values have decreased.

Another concern over the next several years: debt service costs are expected to rise, starting in FY’24 when the borrowing costs for the roughly $16 million new police headquarters (approved by voters at last year’s ATM) will begin. The updated five-year capital plan shows nearly $41 million in possible new spending (including $2 million for a proposed turf field at Allen’s Meadow, among other projects) which voters will have to decide whether to bond.

All of the above concerns added up to a difficult task for the BOF to keep mill rate increases in check.

Vanderslice was not alone in anticipating a challenging budget planning season. Several issues were foreshadowed by Wilton Public Schools Superintendent Dr. Kevin Smith when he met with the Board of Finance (BOF) in October about budget challenges facing the Board of Education, including soaring student outplacement costs and contractual salary increases, among other issues expected to factor into the next school year.

Should the BOF Set Guidance?

In light of such extraordinary budget pressures and expected impact on taxpayers, Vanderslice urged the BOF to provide some budget guidance to both the Board of Selectmen (BOS) and the Board of Education (BOE) before the start of their budget planning.

Vanderslice appeared at the July 12 BOF meeting — months before the start of budget planning — and pressed the board for “meaningful” budget targets in order “to have a sense for where the [Board of Finance] is going.”

“We want to be able to understand what an acceptable mill rate increase [might be] well before we start our budget,” Vanderslice said. “The question is… what is [the BOF] willing to put forth as mill rate increases? That’s what the BOS needs to understand.”

But under the Town Charter, the BOF is not obliged to provide a priori budget targets. Some board members (current and predecessors) have said providing such targets is a bad idea because they could discourage the BOS and BOE from recommending the budgets they feel are truly needed — whether that is higher or lower than what the BOF might set as a target.

Ultimately, the BOF did not provide guidance to either the BOS or BOE, partly because BOF members did not feel they had enough information at the time to make reliable budget estimates or mill rate projections.

BOF Chair Michael Kaelin saw a more fundamental problem.

“The biggest obstacle I perceive to [the BOF] setting budget and mill rate targets is that we probably don’t agree, amongst ourselves, what they should be,” Kaelin said at the Sept. 13 BOF meeting, alluding to the divisions among board members during the preceding budget deliberations.

The BOF encountered the same obstacle in the board’s latest budget deliberations, when members were unable to reach a unanimous resolution on both the BOS and the BOE budget proposals.

Though it did not offer budget targets, the BOF did make a concerted effort to work more closely with the superintendent and BOE earlier in the budget process than in previous years. That seems to have been beneficial, to avoid what some observers perceived as last-minute wrangling in the FY’23 BOE budget and even some disorder during BOF meetings last April.

Does Public Opinion Matter?

Along with early input from the superintendent and the BOE, the BOF also sought feedback from residents throughout the budget process.

The BOF made several appeals to the public to express their views, whether by offering comments at regular BOF meetings, by participating in public hearings on the budgets, or by sending emails to the board. The BOF also launched a survey, closely replicating one conducted last year, to gauge resident reaction to the BOS and BOE budgets, and the projected mill rate.

In the emails the Board received and the opinions offered at public hearings, a strong majority expressed support for the BOE budget. BOF Clerk Matt Raimondi reported that of the 45 emails the board had received leading up to the April 3 budget deliberations, 38 expressed support for the budget and seven opposed it. Similarly, nearly all of the residents who spoke at the public hearing on the BOE budget were in support of it.

On the other hand, 53% of those who took the survey indicated they did not support the 4.5% proposed BOE budget increase, versus 47% of respondents who did.

While the Town Charter requires board members to consider public opinion, it does not set forth what methods of input should be prioritized, or what weight they should give to public opinion over other considerations (including their own judgment).

For example, Raimondi, who led the survey effort, seemed to lean more heavily on the survey results as the basis for his vote to reduce the budgets.

“The survey, while an imperfect tool, should have statistical significance unlike emails that we receive or conversations we may have [with residents],” Raimondi said at the March 15 BOF meeting. “Directionally it should tell us what the people in town want.”

Others, including Chris Stroup, argued that the survey was not a reliable or definitive measure, due to the fact that respondents were self-selected — not a random sample projectable to Wilton’s total population — and the results were more accurately interpreted as “mixed”.

Stroup said that the emails, public hearings and survey were all helpful, but none were “dispositive.” Further, he said, since the BOF is “not a legislative body,” it should not decide the merits of the BOE budget. Rather, Stroup argued that the BOF had done its job to review and understand the BOE budget proposal, and voters should decide if the BOE’s request is too high.

“This is all about values,” Stroup said at the April 3 BOF meeting. “[The BOF is] here to facilitate a process. Ultimately the town has to come out and vote. [The BOF] need not preempt that, and in fact, we shouldn’t preempt that.”

Stroup was outnumbered, however, along with fellow board member Sandy Arkell, who both voted in opposition to the BOF resolution to reduce the BOE budget request. The resolution passed 4-2, with the majority of BOF members determining that the projected 5.69% mill rate increase was simply too high.

Without any line-item authority over the BOE budget, the BOF can — and did — tell the BOE to reduce its budget ask by a certain dollar amount — $1.4 million, which happened to be the same amount of the cost of the district’s instructional coaching program. Kaelin had previously pinpointed that program as a key area where he believed savings could be found.

Prior to the BOF budget deliberations, the had BOE informed the BOF that if forced to cut its budget request, that “programs and staff” and not the instructional coaches would be cut. Kaelin maintained any decision to cut staff would be a BOE decision, and not the result of BOF action to reduce the magnitude of the budget increase.

Is Crowd-Sourcing A Viable Budget Work-around?

After voting to cut the BOE’s budget request by $1.4 million, BOF Vice Chair Stewart Koenigsberg said he still supported the higher budget.

“Personally, many of us on the board support the additional [BOE] expenditures, but given what we heard from the town, we voted for lesser expenditures,” Koenigsberg said at the April 3 BOF meeting.

Koenigsberg went on to suggest an alternative approach to funding, asking residents who supported the BOE’s original budget request to make a donation directly to the BOE. As a rule of thumb, Koenigsberg suggested an amount equal to 1% of a homeowner’s annual property tax bill. (For a median-priced home, that would amount to about $150.)

If enough people do that, Koenigsberg said, “we can make a significant dent” in the proposed budget shortfall. (Donors might also get a tax deduction).

In fact, the district has a clear policy in place that “welcomes and encourages” monetary donations and other gifts from individuals as well as booster clubs, foundations, or other groups.

The policy makes it clear there can be no strings attached. While gifts that “enhance the educational experience” are welcomed, the BOE “cannot accept gifts which could be interpreted as an assumption” of influence by donors on instruction policies or other BOE functions.

According to the policy, “gifts which seek to provide enhancements to the educational or extracurricular experience should be appropriately encouraged,” along with “gifts which duplicate material resources and, therefore, accelerate the attainment of educational goals.”

Gifts of any size must be approved before being accepted, per the policy:

“Any gift valued at $499.99 or less must be approved by the superintendent or building principal before being accepted… Any gift valued at $500 to $25,000 must be approved by the superintendent before being accepted… Any gift valued at $25,000 or more must be approved by the [BOE] before being accepted and meet criteria established by the administrative regulations established in accordance with this policy.”

Donors are encouraged to consult the superintendent or building principal before offering a gift, using a form that is posted on the BOE website.

Among the criteria, the regulations specify that acceptable gifts:

  • will not begin a program that the BOE would be unwilling to take over when the gift or grant funds are exhausted
  • will not bring unanticipated costs, such as maintenance costs, to the district
  • will not create inequity in athletic opportunities for members of both sexes in district-sponsored athletic programs
  • will not imply endorsement of any business or product

GMW reached out to the First Selectwoman and the superintendent for comment on Koenigsberg’s suggestion.

Vanderslice said she recalled the same suggestion often being made during her tenure on the BOF — but not just in relation to the BOE budget.

“That’s not an unusual thing,” Vanderslice told GMW. “Whether it was the [Wilton] Library or the [Trackside] teen center, we just encourage people to donate,” especially in a year when budget proposals were cut.

“If someone donates money to the Town, we have a gift fund. The money is restricted for the purpose for which it was given,” Vanderslice said. “If you believe our [BOS] budget shouldn’t have been cut, you can send that in to us.”

“When the tax laws changed and limited your deductions on property taxes, it’s so much more efficient for people to donate than to pay through [their] taxes,” Vanderslice noted.

GMW also reached out to Dawn Norton, CFO for both the Town and the school district, who concurred with the idea.

“Anyone can make a donation to the Town or Board of Education,” she said in an email to GMW.  

Smith did not respond to GMW‘s request for comment before this story was published.

Fiscal Discipline Or Kicking The Can?

When Vanderslice first presented the BOS budget proposal for $34.7 million — a 2.15% year-over-year increase — she emphasized the fact that the BOS has averaged a 0.86% annual increase over the past eight years.

Smith and BOE Chair Ruth DeLuca have also displayed numbers that put the average annual BOE budget increases in a modest light. They cautioned that the reductions the BOF sought — for both the current school budget and the one in question for next year — did not allow for new investments the BOE saw as important.

“This [4.5% increase] budget really is a reflection of both the current economic and inflationary environment, and the necessary resources to sustain and advance the mission and the values of what is known as a Wilton education, ” DeLuca said at the March 15 BOF meeting.

In an op-ed published by GMW, DeLuca stated:

“Over the last eight years (2015-2022), the average increase in our budgets is a lean 1.27% and the lowest of any surrounding town. The board is well aware that this year’s budget represents the largest year-over-year request in recent history. The board also recognizes and understands the current economic and inflationary environment. This budget already incorporates hard choices and is 1.5% lower than when first proposed in January. We adopted this budget and the choices that this budget represents with the understanding that anything less compromises the services and programs we currently provide and our community’s expectation of excellence.” 

Among BOF members, Arkell, in particular, has made numerous comments about lean budgets “kicking the can down the road,” especially in the BOE budget.

“We’ve been in a trending period of tight budgets, and we’re in an environment of increasing cost pressure,” Arkell said at the April 3 BOF meeting. “We have a responsibility to be fiscally prudent and responsible [but] I worry that we always go and cut the BOE budget, and I think it’s going to reflect down the road, in the sacrifice of the quality of the schools. I think we need to be very careful.”

Stroup’s comments have echoed the same concern. He believes the reductions will lead to “degradation of services” and was convinced both the BOS and BOE had justified their initial budget requests.

“They [BOS and BOE] concluded that was the appropriate level of spending to meet the needs of the town,” Stroup said. “I’m persuaded by the work of the BOS and BOE in the development of their budgets.”

Even Vanderslice has acknowledged that after several years of lean budgets, new savings are difficult to find. Now that the BOF is asking for $200,000 in budget reductions, Vanderslice told GMW she hopes to avoid deferring on priorities.

“I’d like to avoid deferring expenditures. If we defer, it just results in a problem with next year’s budget.”

Where Do We Go From Here?

Going forward, one thing is certain: next year’s budget process will take place with at least two new officials. Both Kaelin and Vanderslice announced they will not seek reelection to their posts.

Kaelin recently made an appeal to residents to run for a BOF position.

“If you follow this process, you can see what a difference it makes who the six people are sitting in these chairs,” Kaelin said. “You have an opportunity in November to replace three of us, so if you’re really happy about what we did, or if you’re unhappy, I sincerely encourage you to contact the Republican Town Committee or Democratic Town Committee and talk about running.”

For now, the FY’24 process isn’t over. Tonight (Mon. April 10) the BOS will discuss where it will find the $200,000 in reductions the BOF is seeking. Tomorrow (Tues., April 11), the BOF will review the list of capital projects that the BOS will present at the Annual Town Meeting for voters to decide whether or not to fund through bonding. The BOF may or may not offer voters an opinion on any of those referendums.

The BOS is asking voters to consider the following bonding proposals, totaling just over $4.1 million:

  • $2,000,000 for a new turf field at Allen’s Meadow
  • $127,000 for Scribner Rd. repairs
  • $950,000 for a replacement fire engine
  • $780,000 for school roof replacement
  • $275,000 for school elevator design and replacement

Unlike the budgets — which automatically pass if voter turnout is less than 15% of eligible registered voters — bonding referendums are decided based on a simple majority of votes cast, even if below the 15% threshold.

Another reason for residents to turn out for the Annual Town Meeting? To support or oppose any new motion to reduce the BOS or BOE budget. At the March 21 public hearing, Kaelin reminded residents how that process works.

“It’s important to note, motions can be made from the floor to reduce what the BOF is recommending for approval, but it cannot be increased. If someone makes a motion in person to reduce the budget, it’s up to the people who are physically present at that meeting to vote on that motion. The reason to be there in person would be so you’re able to vote on any motions that are made from the floor…. the budget that comes out of that meeting is what you vote on with the voting machines following the conclusion of the in-person meeting on May 2 [and in the adjourned voting] on May 6.”

The Annual Town Meeting will be held Tuesday, May 2, at 7 p.m. at the Clune Center at Wilton High School, and adjourned vote Saturday, May 6, from 8 a.m. to 6 p.m.

Still mystified by the Town Meeting form of government and Wilton’s budget process? Here are some helpful resources: