The budget outlook for 2010-11 has some good news, Mayor Scott Slifka told the board of education Tuesday night. As a result of last year’s work, there has evolved a novel working relationship between the board and the town council, which has initiated the town’s understanding of the school system as well as the board’s recognition of the town’s need for funding. Because of this, there were spending cuts on both sides of the budget which reestablished trust and fostered a strong and growing relationship between the two bodies.

“We have to think outside the box for our budgets because the conventional norms are being challenged,” Slifka said. Using the analogy of the “GM problem” of dealing with the long-term liabilities and ignoring the product, Slifka emphasized the need to continue providing town services even with the legacy of long-term responsibilities. “We’re in a period of time where our needs to fund the long-term liabilities is dwarfing to provide these town services,” he added.

However, the long-term budget picture for the town is “very good” and there “is a lot of light at the end of the tunnel,” he said. Though facing tough economic times, the need to concentrate on the liabilities while continuing to address the demand of maintaining an ideal destination where parents want to send their children to school was overtly stressed by all parties.

“Maintaining the excellence in school systems is going to be a key factor in maintaining the town’s reputation to raise families, live, work and play,” said town council Minority Leader Denise Hall. There were mentions of improving efficiency of input (cost) vs. output (educational value), addressing rising costs such as healthcare, and not compromising town services.

Town Manager Ron Van Winkle stressed that budgeting concerns are not a one-year issue. Last year brought a lot of town achievement with the help of the federal government. This year is harder because cuts are serious and next year will prove even more difficult. “The ARRA [federal] money which helped us is going to hurt us because we’re going to have to now make the cut,” he said.

“On the board side, we’re really worried about next year’s budget because of the ARRA money. How do we navigate tough choices because of the two year issue?” asked board chairperson Clare Kindall.

Van Winkle responded by saying that a two-year budget should be considered.

“We are amazingly efficient with our resources," he said, "so to face the budget situation, we’re both talking about cutting services. But are we going to kill the goose that laid the golden egg?”

In the end, Slifka and Hall stated that they’re not going to be able to economize their way out of the financial burden. Fundamental challenges must be faced while realizing that the town is on its own in creating a solution. The ARRA money was essentially taken by the state from the federal government and when it ends, there will be few appetizing choices left. Spending must be cut and there must perpetually be a strong community focus.

“On behalf of the board, we appreciate the cooperative efforts to get through these extreme economic times,” Kindall said in conclusion.