East Haven School Board Runs a Budget Deficit, But Town's $1M Surplus Makes Up For It

Mayor Joseph Maturo, Jr. announced today that, based on the latest revenue reports being submitted to auditors and despite an operating loss of approximately $182,000 at the Board of Education, the town is projecting an $840,000 surplus for the 2013-2014 fiscal year, according to a press release from the mayor’s office.

Read the rest of Maturo’s press release:

Maturo explained, “Thanks in large part to the cautionary spending freeze I instituted in December and due to aggressive tax collections by the Town Attorneys and the Tax Department, the Town is projecting a surplus of $840,000 dollars for the ’13-’14 fiscal year.”

Specifically, according to the Finance Department’s latest projections, revenue for the ’13-’14 fiscal year totaled $86.47 million and total expenditures, including the Board of Education, totaled $85.63 million.

Maturo continued, “The projected $840,000 dollar surplus will be added to the Town’s rainy day fund, raising that fund from $1.60 million to $2.44 million dollars – its highest level since 2007. This increase is particularly noteworthy given the fact that just four years ago, the Town’s rainy day fund had spiraled into a $5.19 million dollar deficit under the previous administration.”

Maturo’s announcement comes ahead of a Board of Education meeting scheduled for September 9th at which Board of Education officials are expected to announce that the Board over-expended its allotted funding for the ’13-’14 fiscal year by approximately $182,000 dollars.

Maturo explained, “For 2013-2014, the Town’s actual budget surplus is projected to be $1.02 million dollars. However, because it appears the Board over-expended its appropriation by about $182,000, that over-expenditure is required to be deducted from the Town’s $1.02 million dollar surplus. Nevertheless, despite this over-expenditure, the net effect is a healthy budget surplus of $843,000 dollars.”

Maturo continued, “Although I am not pleased with the Board’s failure to work within its budget, I am happy that the spending freeze I instituted in December and the Town’s strong revenue collections have carried the Town to another healthy budget surplus.”

On December 13, 2013, Maturo initiated a town-wide spending freeze halting spending on “all non-emergency purchase orders and overtime” which required that department heads obtain prior approval from the Mayor for all discretionary and non-essential expenses in excess of $20.00. Additionally, the Town collected a record-breaking $995,000 dollars in delinquent tax revenue, exceeding the anticipated collection figure of $750,000 dollars by an unprecedented 32 percent.

Maturo continued, “I know this year’s surplus, and the Town’s efforts to increase revenue collections, were significant considerations for Standard and Poor’s, which just last month raised the Town’s credit rating From BBB+ to A-. I am pleased that my Team’s hard work is being both validated and rewarded.”

Maturo concluded, “Our Town’s financial success since 2011 demonstrates that, although some challenges still remain to be addressed, the Town is now in a position to begin turning its attention toward making critical infrastructure upgrades and toward reducing the tax burden on our residents. As we pursue these goals, my Team and I will continue to work hard to achieve financial success and to improve the services and resources available to our residents.”