Prior to the City Council’s full budget review and approval, the City Council met to consider a resolution proposed by Ward 4 Councilor, Lenny Gentile, to use $10,000,000 of Free Cash designated for the Lincoln Eliot Elementary School project, as part of an unrestricted reserve fund comprised of:
- $10,000,000 designated for the Lincoln Eliot Elementary School building project
- $7,800,000 for the property tax overlay account
- $1,500,000 designated for the Rainy Day Stabilization Fund
- $5,000,000 from FY22 unallocated free cash and other sources of cash identified by the Mayor
Councilor Gentile’s resolution stated that “The purpose of this fund would be to generate no less than $750,000 annually to be reused to support the operating budget of the city while strengthening the reserve position of the city as recently recommended by our rating agency Moody’s Investor Services.” Ward 4 Councilor Chris Markiewicz, an accountant, argued in favor of the resolution and said the $10 million of free cash, which is proposed to be used for buying down Lincoln Eliot bonds, is a poor use of current free cash. He argued that all capital projects should be fully funded through bond debt, not current operations cash, except for the annual debt service amount. Like Councilor Gentile, he argued that Horace Mann and Lincoln Eliot projects would be built in either scenario.
Chief Financial Officer (CFO) Lemieux said, that the Administration “share[s] the commitment to the goals of remaining a financially strong City and having a sustaining City Operating budget,” but concluded that the Administration would transfer the $10 million in 2022 Certified Free Cash to pay for the initial portion of Lincoln Eliot’s construction, promising that the Treasurer will “responsibly” invest the General Fund pool “to maximize their interest income in a safe manner.” (See Response) The Committee voted 19-4 to deny the resolution.
Councilor Lenny Gentile offered another budget resolution requesting the Mayor provide enough funding to grandfather in all retirees currently receiving Medicare Part B reimbursement at the current rate of $925 per individual. The funding for this request is to come from FY 2024 interest income or any other source of revenue deemed appropriate by the Mayor. The city is moving to a new retiree health plan which it estimates will save retirees an estimated $706 per person next year. To compensate for the fact that the $500 cap on maximum out-of-pocket prescription drug costs is not available under the new retiree health care plan, the city negotiated with the carrier a $1,500 maximum out-of-pocket prescription drug cost next year. CFO Lemieux noted that the Administration heard from the Retirement Board, City Councilors, union members, and retirees who asked that the Medicare Part B reimbursement be phased out over a longer period. In fact, Councilor Gentile and others asked that the reimbursement not be phased out and that for many retirees, losing the money would pose a hardship. Responding to those concerns (see Response), the Administration decided to add an extra year of benefit of $231 per current retiree. Beginning in FY26, current retirees who are at 65% of the Newton Area Median Income may expect to receive $230 annually. The contribution will not apply to new retirees.
Councilor Tarik Lucas filed a budget resolution, asking for supporting documentation to be submitted whenever there is a change in personnel from one year to the next identifying the positions, job descriptions, and an explanation for the change. so that Councilors would understand the reasons for changes in city departments. CFO Lemieux submitted the FY2024 FTE (Full Time Employee) summary as well as a link to the Comptroller’s budget and said that Administration works to provide a transparent budget (see Response). She promised that in the FY25 Budget Book, the Administration “will keep your resolution in mind so that the City Councilors (sic) have clear and accessible information on proposed personnel changes.”
School related resolutions
Ward 6 Councilor Brenda Noel was the lead sponsor of a resolution to the school department regarding the Understanding Our Differences (UOD) funding, requesting the School Department require using all or part of the funds from the partial restoration of the UOD line item, to continue UOD quality inclusion programming for Newton students. The resolution was co-sponsored by Humphrey, Kalis, Crossley, Lipof, Bowman, Leary, Danberg, Kelley, Albright, Krintzman, Greenberg, Gentile, Norton, Ryan, Wright, Markiewicz, Lucas, Grossman, Downs, and Oliver.
As previously noted, Interim Superintendent Kathy Smith submitted this response to the resolution. She said she appreciates the shared “commitment to inclusion and ensuring that all students are treated with dignity and respect,” and acknowledged “[T]the work championed by the Understanding Our Differences (UOD) program” that “is aligned with our district values of providing equitable school experiences for everyone every day.” Smith added that “the Newton Public Schools will sustain curriculum work currently in progress to support disability awareness … despite the budget shortfall and resulting reductions” and said that NPS will “explore other options for valuable supplemental experiences for our students that will enhance their understanding and awareness, including conversations with external vendors/service providers.”
Noel and other councilors expressed their disappointment with the response and said UOD was “uninvited.” In a statement, Noel said: “By striking the program from the budget, rather than addressing opportunities to strengthen and improve the curriculum, we are sending a clear message to the children of the Newton Public Schools that shying away from difficult discussions and potentially uncomfortable situations is an appropriate course of action…..I recognize this is a very difficult time for the city, being faced with significant budget shortfalls, but budgets reflect our values. The decision to eliminate the UOD from the Newton Public Schools flies in the face of the kind of future that we want for Newton, and the kind of good citizens that we want to raise our children to be.”
Ward 6 at-Large City Councilor Alicia Bowman led a resolution regarding school transportation management sponsored by 21 City Council members. The resolution asked the Mayor to fund “a strategic study of the school transportation program in coordination with Newton Public Schools and transportation staff from Planning and DPW.” Proponents want to increase bus ridership, review the fee structure, and transition to electric buses. Jonathan Yeo, the Mayor’s Chief Operating Officer, explained that NPS, the incoming school superintendent, and the School Committee are responsible for school transportation management (see Response). Councilor Bowman said she was disappointed and hoped for more leadership from the Administration. Bowman, a member of the school transportation working group said that families were not being well-served adding that as a member of the School Transportation Working Group “ … we’ve made zero progress. We have a responsibility to our families for better transportation.” Finance Committee Vice Chair David Kalis said: “nothing was happening and it was such a glaring need.” Ward 8 Councilor Holly Ryan noted that the City of Worcester has put a lot more work into school bus transportation and said “We need to keep the discussion alive not just at budget time.” Council President Susan Albright hoped the incoming Newton School Superintendent will take the Administration up on the study.
Ward 4 Councilor Lenny Gentile submitted a resolution requesting an increase in the use of Free Cash for the FY24 budget from $1.5 million to $2.1 million, designating $600,000 for the NPS operating budget. CFO Lemieux made clear that the “Administration has been strategic in our utilization of an additional $2.4 million of one-time funds specifically for NPS.” President Albright countered that money will be freed up because of the reduction in the annual rate of contribution to the Retirement Pension Fund and that some of that could have been used for the schools. In her response to the Resolution, Ms. Lemieux concluded “Utilizing additional one-time funds from Free Cash to support on-going NPS expenditures would not be financially prudent.” (see Response.)
Several Councilors expressed concern that the Administration had not allotted more money to the schools. Ward 5 Councilor Bill Humphrey also noted that mental health services funding in the Department of Health and Human Services budget has been reduced at a time of greater need for services.
Finance Chair Councilor Becky Grossman wanted more money in the school budget for kindergarten aides and middle school teachers. At the same time, she underscored the fact that the City Council does not have the authority “to move money around.” A no vote would be “ineffectual,” she said. In a roll call vote, twelve Councilors, including Councilor Grossman, voted in favor of the Mayor’s school budget request; eight abstained, including Council President Albright, and one, Councilor Brenda Noel, voted “no.”
