Boardman’s financial woes won’t be solved with reserve

Boardman Trustees Kathy Miller and Robyn Gallitto have concluded correctly that it would be an exercise in futility to urge voters to approve an operating levy anytime soon — given the overwhelmingly rejection of a 4.1-mill tax increase last November.

But Miller and Gallitto part company on how the township’s budget crisis should be addressed. New Trustee Larry Moliterno — he succeeded Elaine Mancini — has yet to publicly present his ideas for dealing with the issue.

During last year’s campaign, Moliterno made much of the fact that his budgetary experience as the chief executive officer of Meridian Services Inc., a nonprofit agency with a staff 100, would prove invaluable to township government. We look forward to hearing from him.

The Miller-Gallitto split occurred last month when the board, including Mancini, adopted a general fund budget. Miller refused to go along with her colleagues who passed a $19.6 million spending blueprint for 2008 even though anticipated revenue was pegged at $15 million.

Gallitto and Mancini obviously viewed the $4 million reserve — created largely by high inheritance tax receipts — as a funding source; Miller did not.

In the past, year-end budget surpluses have gone to pay for infrastructure projects that weren’t included in the regular budget. Using such money to plug a hole in the operating budget isn’t responsible governance.

Here’s the bitter truth about Boardman Township’s financial situation: Voters have said no to an additional levy that would have generated $4 million a year; revenues that have been declining since 1996 are expected to hover around the $15 million mark; there are no new sources of income for township government; the $4 million reserve fund is a one-time proposition if it is used for day-to-day operations; the words elected officials hate use — budget cuts — must become part of the discussion.

Layoffs

Given that more than 80 percent of the operating budget goes for employee salaries and benefits, cuts necessarily mean layoffs.

Trustees plan to hold a workshop on the budget so they have all the facts and figures before them when they have subsequent meetings to focus on cuts and explore ways of increasing revenue.

The workshop should be scheduled at a time when as many township residents as possible can attend. After all, it is their money and they need to know that the trustees, Administrator Jason Loree and other township officials have a firm grasp of reality.

After all, the taxpayers will be asked in the future to consider a tax increase. There is no alternative, if revenues keep declining.

Boardman residents need to understand that layoffs are inevitable and they should also feel confident that the decisions made by the trustees will be based on objective criteria.

It is instructive that when the 4.1-mill levy was placed before the voters in November, the trustees and others made it clear that its passage would result in the police department being brought up to its authorized strength.

Yet, residents, by about a 60-40 percent vote, said no. And that prompts a one-word question: Why?

Were voters not convinced that the additional police officers were necessary, or did they not believe that the additional money would be spent responsibly?

Inviting residents to the workshop would provide trustees with an unfiltered view of public opinion.