Balukonis: Overlay Account May Be Best Quinn Bill Funding Source

North Reading’s overlay reserve account may be the best source of money to fund the town’s obligation under the Quinn Bill educational incentive, Town Administrator Greg Balukonis told the Board of Selectmen on Monday night.

The overlay account has approximately $345,000 available for 2008 through 2010, Balukonis said, which would help the town fund incentive payments due to eligible police officers retroactive to July 1, 2009, a move required by a December Middlesex Superior Court ruling against the town.

Balukonis advised against utilizing free cash, which the town will need to cover its snow and ice removal obligations and other capital needs. He also advised against taking money out of the stabilization fund, which he equated to a savings account for the town.

To access money from the overlay account, the Board of Assessors must vote to release the funds, and then the move must be approved at Town Meeting, Balukonis said. The Board of Assessors already has been notified of the request for the funds, Balukonis said.

A special Town Meeting on March 14 at 7 p.m. at theauditorium will vote on appropriating funds for the incentive.

Balukonis estimated that the town’s two-year obligation to fund the Quinn Bill incentives would amount to $406,500. He told selectmen that the $50,000 to $60,000 gap between the town’s obligation and the amount available in the overlay account may have to be made up in "savings in overtime" at the police department.

Balukonis said his goal is to have an agreement with each union within the police department on dollar figures relating to the Quinn Bill before the special Town Meeting.

Selectmen Stephen O’Leary spoke against cutting overtime for public-safety officials, especially when the police department already is understaffed, he said.

“I have no intention of supporting any motion that would affect the overtime budget of the police department,” O’Leary said. “From a public-safety standpoint, and a financial standpoint, I think it’s important to look at other places.

"It’s easy to just say it’s a police department problem," O'Leary said. "It’s not. It’s a community problem.”

Robert Mauceri, chairman of the Board of Selectmen, requested Balukonis get a report from Police Chief Edward Nolan on the management of the overtime budget. He also asked that the town investigate additional sources to close the gap.

The Quinn Bill, passed in 1970, provides police officers with incentives for receiving a law enforcement, criminal justice or law degree. According to the law, the state must reimburse municipalities for half the cost of funding the incentives. 

However, the state has cut its contributions dramatically since 2009, Middlesex Superior Court Judge Kathe Tuttman wrote in her Dec. 17 decision.

In fiscal year 2009, the state reimbursed North Reading approximately $163,425 for Quinn Bill expenses, Tuttman wrote in her decision. In 2010, the state cut that aid to $27,119, according to the decision.

An April 2009 agreement between the town and the union stipulated that the town would pay its 50 percent share of Quinn Bill reimbursements, plus whatever money the state contributed. Tuttman ruled that state law supersedes the town's agreement with the union, meaning the town must pay police officers their full incentives dating back to July 1, 2009.

Balukonis has estimated that it would cost the town between $180,000 and $185,000 a year to fully fund the obligation going forward. The town will appeal the superior court ruling, but it began fully funding the incentives due to eligible officers in January.

Selectmen took no action Monday night on Balukonis' proposal. A public informational hearing on the Quinn Bill funding will be held March 7.