Controversial Town Budget Moves To Referendum

Next year’s town budget currently sits in the hands of the people: EL voters will go to the polls today to vote whether or not to approve the budget as adopted by the Board of Finance (BOF), roughly two-thirds of which funds the school system. The most contentious in years, the future of this budget remains unclear.

Next year’s town budget currently sits in the hands of the people: EL voters will go to the polls today to vote whether or not to approve the budget as adopted by the Board of Finance (BOF), roughly two-thirds of which funds the school system. The most contentious in years, the future of this budget remains unclear.

Historical trends indicated that the BOF was likely to make significant cuts to the BOE budget, but they instead approved a 6.80 percent increase, a cut that allowed the BOE to retain all positions.

East Lyme Teachers Association (ELTA) “I’m afraid that if this budget is not approved, that indicates that the town wants more cuts to the budget. We will go back to square one, and that probably means we’ll go back to the 18.5 positions being cut,” Mr. Mahon said.

Mike Schulz, a 78-year-old citizen of EL, retired U.S. Navy member, and current business owner, argued that
the budget increase rate is unsustainable, and that this budget must be rejected.

“This year’s budget is wasteful and extravagant,” noted Schulz. “One of the [state-mandated] functions of the
BOF is to prevent wasteful and extravagant expenditures.”

Schulz was also concerned about the budget’s impact on EL senior citizens, who make up 23.8 percent of the town’s population (as compared to the nation’s 16.8 percent).

“We have an aging population, many of which are surviving on a fixed income. Home heating oil cost tripled, electricity increased by 40 percent. Gas at the pump at least doubled. All insurance costs increased dramatically. That impacts everyone,” said Mr. Schulz.

Schulz closed his email by listing some proposed changes to the budget process, such as capping BOE budget increase to the minimum state statute requirement or one percent plus the fixed expenses, increasing employee
health insurance contribution, and requiring town and BOE employees at the administrative level to live in
East Lyme so they “appreciate the current tax levy.” Brian and Caryn Zahnstetcher, EL citizens, business owners, and parents of two Niantic Center School students, spearheaded several efforts to convince the BOF to support the BOE
budget. Because the BOF deals with money, the Zahnstetchers were especially attentive to the financial soundness of investing in education.

“In just about any measurable form, investing in education yields significant financial benefits to the local economy in terms of higher-paying jobs, retaining constituents, etc,” the Zahnstetchers stated in a March 28 letter to the BOF.

The Zahnstetchers three-page letter included an array of statistics regarding educational investment, such as data that “every one dollar of public investment in K-12 educational services results in $6.66 of GDP growth, and $1.66 of tax revenue.”

With the help of Ms. Zahnstetcher, a professional financial analyst, Mr. Zahnstetcher was able to compile the
document and lay out his argument, complete with sources.

“Please realize cutting positions is not saving money, but rather trading student education, growth, and long-term
sustainability for the Town of EL and the good families that live here,” requested the Zahnstetchers at the end of their letter.

Mr. Zahnstetcher noted that one of the most overlooked consequences to this budget is the increased home values that come with quality education.

“Just mathematically speaking, it
should still be seen as excellent return on investment to pay an extra few hundred bucks this year if it results in even a very modest half percent increase in home value,” Mr. Zahnstetcher said. “Given an average home value of
$330,000 in EL, this data translates to a $3,500 increase in home value for a tax contribution of much less than $1,000.”

BOF data indicates that the y e a r – o v e r – y e a r increase for property taxes will be $239 for a home valued at $300,000 if the budget is approved tonight, May 18.

“We’re not hypothesizing here. It’s more than just ‘save the children.’ The data is solid,” Mr. Zahnstethcer added.

Mr. Mahon urges the voters of EL to approve the budget and vote ‘yes’ tonight.

“This is not a time to be complacent. This is a time to speak up. We need you to come out, and we need you to vote for this budget,” Mr. Mahon said. Mr. Mahon understands the worry surrounding the increase, but ultimately maintains that this budget is what is best for the town of EL.

“We’re in difficult times. We’re all paying more for most things. But we’re also coming out of a time where the most vulnerable citizens of this town – the students – have been deeply affected. This is the time to rally around the people that need the most help in this town, the students of this district.”

Student voices matter, Mr. Mahon maintains. Mr. Mahon had unique advice to graduating seniors of ELHS.

“Leave a legacy here. Understand the value of your education, and of education costs. If you are able to vote on May 18 as a graduating senior, now is the time for you to be heard.”

Tonight, the East Lyme community will see the results of one of the most controversial proposed budgets in years, and in turn, its impacts.