Status Quo Running Town Into 'Wall'

The next teachers’ contract will play a major role in Barrington’s future spending on everything from day-to-day expenses to capital items, such as road repairs and building a middle school.

“The things that are driving the budget increases are employee compensation,” said Geoff Grove, chairman of the Ad Hoc Budget Forecast Committee. “It will have a major impact on the wish list of capital items and services the town offers.”

Grove made a presentation for the ad hoc committee on Wednesday to the Town Council, the School Committee and the Committee on Appropriations that he described as: “What happens beyond this year? What are the budget implications?”

The news from the ad hoc committee is that if Barrington continues to spend for day-to-day operations as it has over the past 10 years, the town will be unable to afford capital projects by the year 2020.

Among the capital projects being discussed, are $5 million in road improvements, a community center at an estimated cost of $5 million, and a new middle school at an estimated cost of $30 million or more.

“We either increase the tax levy by 3.5 percent per year,” Grove said, “or we change the assumptions on which the forecast is built.”

Among those assumptions is that school spending goes up 4 percent a year and municipal spending increases 2.1 percent a year. Those numbers change this year with a proposed budget ready go to the Financial Town Meeting that shows no tax hike for Barrington this year. But is that a harbinger of future budgets?

“Assuming a 4 percent tax boost each year,” Grove said, “by fiscal year 2020 there will be nothing left for capital expenditures. We will never be able to spend on capital if we get to that point.”

Salaries and benefits make up 86 percent of the $45 million school budget – or approximately $38 million. Even when the $17 million municipal budget is added to the school budget, compensation for school employees makes up way more than half of all spending in Barrington.

To put that another way, more than half of Barrington taxes go straight to paying teachers’ salaries and benefits.

Contract negotiations next year, therefore, are expected to get even more scrutiny than ever. The final contract will play a major role in how Barrington deals with al future spending – spending that the ad hoc committee forecast indicates could have some dire consequences if things remain the same.

“If we leave everything alone, including capital,” said Grove, the town may never be able to catch up and will drive, instead, right into that so-called “wall” in 2020.

“To avoid that unpleasant wall,” Grove said, “we need to start dealing with these things now” – things like the teachers contract. “How can we moderate increases? There have to be other ways to accomplish that.”

There is a way around the wall, said ad hoc committee and COA member Nick DeRosa, including an override of the state cap on spending increases each year.

“But do want to take that step?” he said. “We can take action to have it all,” the operating budget increases and the capital projects, “or we can be more fiscally responsible.”

Among the suggestions for reducing operating expenses down the road were regionalizing services; privatizing services; bring in the best negotiator possible for the next teacher contract; and using technology to change the delivery model in the schools. School Committee member Chris Ramsden made the latter two suggestions.

“The School Committee must talk with the Town Council about Barrington’s needs,” said Grove. “What are the most important things? And how are we supposed to get things resolved? That involves the political process.”

“Do we keep spending 3.5 percent more each year or do we change the assumptions?” he said.  “A combination would seem to be one answer. Everything is interrelated.”

No specific decisions were made Wednesday night on future spending practices. But the Town Councilors, School Committee and COA members decided to meet at least twice a year together from now on. The next meeting is expected to come in the early fall.