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On March 24, when the Board of Finance cut $1.74 million from the proposed town budget, Ianone said an analysis he performed showed that the town could save $340,000 by combining the administrative costs of the town and school health plans. Joseloff expressed disappointment with the analysis, saying that after further scrutiny by the town finance department, the savings appeared to be at most $25,000.
"This shows the complexity of taking some information and jumping to conclusions," said Joseloff. "I'm all for achieving savings and I don't care if it's from Democrats or Republicans. I'll take what I can get. However, it does no good to throw out numbers. It does a disservice to the public at large." Instead of asking to restore the full amount, however, Joseloff said he had garnered further savings in a reserve health account which amounted to $150,000.
Sharp debate ensued between board members, as Ianone defended his analysis and said he had updated it again with new information, and Republican board member Avi Kaner supported Ianone saying, "I applaud Ed for his analysis. It is a disservice to slap down any analysis that is done. We do not want to stifle creativity. We want to ask the hard questions. Where adjustments are needed we will make them."
Board Chairman Jeff Mayer said, "I applaud the energy and creativity, but there is a level of professionalism that we have come to expect from this board. Either the $340,000 has been proven to exist or it has not. Now I hear you say you have a new analysis that shows that half that amount is justified. The town found only $25,000. We've got a government to run. We need hard-headed analysis, and we have to make tough choices and be intellectually honest. Tonight the town's department heads are saying 'where's the beef?'"
In a statement issued to the press the day after the meeting, Democratic board member Helen Garten said, "This has been a difficult budget season and there has been a lot of overheated rhetoric. That's unfortunate, because the public expects more of us. People expect us to listen, weigh the alternatives and make a decision based on our best judgment.
"Last night's Board of Finance meeting gave us two opportunities to do that. First, with respect to the savings in medical administrative costs proposed by a colleague, I could not commit to a reduction in this account without further analysis, particularly after the town's insurance consultant raised questions. Unlike some budget items, medical insurance costs are not discretionary. If we cut now and the savings do not materialize, we will have to pay later.
"There may be savings to be found, but they are most likely to come from renegotiating contract terms with our insurance administrators. This will require the cooperation of multiple stakeholders. I commend my colleague for getting the ball rolling, but it will take all of us to build a consensus for change. For example, for years Board of Finance members called for the restoration of the Internal Auditor position in order to identify operational efficiencies. This year, the Board of Finance Audit Subcommittee (Charlie Haberstroh and myself) with the support of Chairman Mayer and the rest of the board and working with the town and schools administrations and our Board of Education colleagues, made it happen.
"But the most important decision we made last night was to approve a final budget that represents, for the first time in years, a zero percent increase over last year. Getting control of spending is not easy, but it must be our top priority in this economic environment. We tried to strike a balance that would preserve essential services while putting the town on a solid financial footing going forward."
Ianone also released a statement saying, "At the March meeting I presented a preliminary analysis indicating
that we may save money by consolidating the administration of health care between the Town and the Schools.
Since then, we have collected detailed data from town and school administrators and have refined the analysis. I am pleased to share that we do indeed have a potential savings of at least $165,000 a year - $140,000 in administrative costs and $25,000 in duplicative consulting costs. This is a wonderful opportunity for us to save money by consolidating this function. I just wish we had this analysis earlier. Potentially, we could have saved $800,000 over the past five years. It is now in the Selectman's and School Superintendent's hands to make it happen."
