Wednesday, October 8, 2014

Towns need fiscal literacy now

Towns need fiscal literacy now

In January, Templeton Town Accountant Aponte reported a $505,000 deficit. He stated: "The deficit likely arose while a previous accountant used different software to handle the town's books." This equated to every household coming up with $209 to make up the deficit, or $505,000 not being available for future spending, or borrowing money.

So now we read that the Winchendon town manager "is developing a plan to fix the deficit, which he thinks is $2.3 million, but Selectman Blair Jackson said could be as much as $5 million." This equates to $575 (or $1,250) per household.

The price for almost everything keeps rising — electricity (projected to rise 37 percent), heating, gasoline, trash collection, property taxes, water taxes, sewer taxes, food, education, etc. These are the legitimate costs, I'm not suggesting otherwise. Is $575 (or $1,250) a lot of money? Ask our senior citizens.

I propose, once again, that everyone involved in spending large sums of money (those that approve, concur, or sign the checks) be required to pass a certification exam that would test their proficiency in applicable software, Massachusetts General Laws, accounting procedures, and anything else necessary to demonstrate that they know how to do their jobs. Would there be a cost for this? Probably. But would it be less than $545 (or $1,186) per household? I think it would.

Templeton, Wachusett Regional School District, Spencer, East Brookfield, and now Winchendon — different towns, different departments, but the same story — financial mismanagement. Is your town next?

IRA HOFFMAN

Holden 

10 comments:

  1. Thanks to all those in Templeton that have watched over the financial matters. "Eternal Vigilance" once again seems to be the key phrase. A system of checks and balances along with a public that keeps themselves informed doing their own homework goes a long way to helping the situation. Thanks again to those who have watched over this town's finances.

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  2. I don't know what the solution is for the increase in many town's financial woes. I do know the "safeguards" that are in place now don't seem to be working. Annual audits, DOR processes to certify the tax rate, CPAs as accountants do not equate to financial solvency.

    On the local level people are elected as selectmen, or city councillors and are required to take an ethics test. There are trainings provided by the Mass Municipal Assoc. for elected and appointed town officials to become familiar with municipal finances. On a day to day basis these municipal finances are overseen by accountants, and town managers/administrators and/or mayors.

    Most elected officials I know are not paid for their public service. The Special legislation voted at Templeton's annual town meeting, places the financial responsibility on these same unpaid elected officials. In other words if we sign a payroll or vendor warrant that is found to be incorrect - We, the signers of that warrant or payroll ,are on the hook FINANCIALLY! Two words of advice for elected officials - HOMESTEAD ACT!

    The author of this letter to the editor missed a few towns with financial problems - Hubbardston and Barre.

    I do agree with the premise that the current rise in municipal financial problems is just the tip of the iceberg. I believe there will be many more towns/cities dealing with theses issues in the near future. In my opinion,the "safeguards" put in place don't work.

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  3. First, the facts, I believe if you check the records, you will find that at a meeting in December of 2013, on a Friday, there was a meeting at 690 Patriots Road where this 500K shortfall first made its debut publicly. We must have correct information to discuss these problems. You may claim the elected officials will be on the hook but the taxpayers will be footing the legal bill to defend said officials. Perhaps Templeton officials could show they are serious about finances by implementing an immediate police of no, as in none, town vehicles be used to go home with any town employees!

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  4. Hi Jeff,
    You are correct that town counsel will end up defending the elected official.

    I belelive Templeton has turned the corner. We did NOT have to take the state loan to balance FY 14. I wish I knew what more we could do to ensure there will not be a repeat of the financial issues in Templeton.

    Eternal Vigilance is needed! Always. The more questions are raised the better off we will be as a town.

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  5. Nice to see huff still reads the blog

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  6. IN my opinion its hard for people who get used to , the evaporation of value of money while cost of everything rises the town meeting need a quorum , " by law" measure to state last stats could be consider , , That vote number being the measure of percentage 60 % The quorum is the majority of the entire body of town who votes last state held campaign like this coming nov , with this the town could not move any measure forward without the quorum not going to meeting would then be a vocal statement , if we all come its justice if we do not its justice , it is said that we are govern by consent consent is voluntary and being govern is by force The present system is governing by force if you continue to allow over ride after over ride you only brake the very source, I do not be-leave town people live life for this reasoning to continue the economic shameful debt , to revamp is what the town is exhaustively doing .
    massvocals

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  7. Concerning state ethics and their tests that they require elected officials to take, I am not sure what those tests are suppose to do to keep elected officials in check. Take this example, last year on August 28, 2013, I filed an ethics complaint against Gerald Skelton for signing off on pay increases for his wife, then town coordinator Carol Skelton. I provided copies of the paper work with his signature on it, copies of annual town reports showing the time Gerald Skelton spent on the select board with access to town legal council along with a copy of the ethics test question and answer concerning it is unethical and a violation of the state ethics law to gain financially from public office, both you and family members. Imagine my surprise (not0 when on September 17, 2013, I received a letter from state ethics commission signed by Katherine Gallant, deputy chief of investigations informing they got the information I sent, they had determined the matter does not warrant a public resolution or the imposition of formal sanctions. Perhaps Dennis O'Brien should have asked Gerald who he knows down there so perhaps they could have helped him out with his ethics issue. That is my opinion anyways. So there you have it, that is how ethics commission works in the state of Massachusetts, not very encouraging in my opinion.

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  8. The State ethics test is interesting. When you take the test, if you get an answer wrong, you get to choose another answer until you get the question correct. I wish all the standardized tests for students in MA had that option! All teachers in Massachusetts would be rated exemplary in no time!

    At least history will show the attempt by many people in Templeton to have the state come in and do an investigation. There is still a bill languishing in Rules committee asking for an investigation into 4 issues in Templeton-

    The purchase of 252 Baldwinville Rd
    Chapter 93 Acts of 2000 - the formation of the Light and Water department
    Returning $$ to Casella - $369,000 (couldn't the water department use that right now!)
    WWTP contract and lawsuit

    I'm voting for and support Rep. Denise Andrews. She is the only elected official willing to help Templeton get some kind of resolution to these 4 issues.

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