Boardman’s balanced budget a sharp contrast to 2009 crisis

It wasn’t so long ago that the words “fiscal watch” were used to define Boardman Township government’s ailing budget. The difficulty in matching revenues and expenditures led trustees to seek a special fiscal analysis from the Ohio Auditor’s Office. It appeared that a designation of “fiscal watch” from the state was inevitable.

Fortunately, the township dodged the bullet. But while the auditors concluded that Boardman had not reached the level of fiscal dislocation to warrant the designation, they did warn that a deficit in the operating budget could be expected in 2010 if spending were left unchanged.

Fiscal-watch status means expenditures are outpacing revenues, It’s a precursor to declaration of fiscal emergency, which triggers the appointment of a state fiscal oversight commission to supervise all aspects of the budget.

In the midst of the crisis came the November general election that saw the defeat of two incumbents, Kathy Miller and Robin Gallitto. Boardman residents decided to bring back Thomas Costello and to turn to Brad Calhoun, a school teacher who had run for Boardman trustee in 2007. The message from the electorate was clear: We’re tired to the upheaval on the board of trustees and think it’s time to change direction. Costello and Calhoun joined Larry Moliterno, who was not on the ballot last year.

The trustees didn’t waste any time tackling the major issues that have made balancing the budget difficult. That effort is reflected in the 2010 spending blueprint they adopted last month that was not dependant on a carryover from 2009 to bring it into balance.

“It boils down to three trustees working together, making correcrtive actions in policies and operating procedures,” said the township’s fiscal officer, William Leicht.

While Leicht is right about the change in the climate with regard to the trustees, it also is noteworthy that a financial windfall at the end of last year enabled government to start 2010 on a firmer footing. The township received a one-time payment of $566,000 as a result of voters approving an electric-aggregation proposal in May, and also received $220,000 in inheritance tax revenue from the estates of township residents who have died.

The money was used to erase a $344,000 projected deficit in the operating fund, while the rest went for capital improvement projects.

Credit is due

Nonetheless, trustees Moliterno, Costello and Calhoun deserve credit for recognizing the uncertain economic times and adopting a budget for this year that cuts spending from 2009 by about $500,000. The final appropriation for this year is $16,510,785, compared with the $17,026,762 that was spent last year.

How were the trustees, along with Administrator Jason Loree, able to reduce spending? By making some tough decisions about manpower. More than 80 percent of the operating budget goes for salaries and benefits.

In the election last year, The Vindicator endorsed Miller and Gallitto in the belief that their experience and knowledge of the budget was necessary given the economic challenges confronting Boardman.

But observing what has taken place since January, we are prepared to acknowledged that Moliterno, Costello and Calhoun have developed a working relationship that is producing positive results.