Budget process is the real issue
by JESSICA L. FINCH Associate Editor

It was a poor budget process that put the Town of Amherst in its current predicament, the committee that reviewed the 2006 budget told the Town Board.

Chaired by Ian Redpath, from the accounting department at Canisius College, the committee was formed through the Amherst Chamber of Commerce to review and make recommendations on the town's budget.

The committee's first recommendation for remodeling the budget process is to have a lot more interface between the board and the department heads.

"The healthcare under funding was created by lack of communication and assumptions," Redpath said.

He added that many of the 2006 numbers were based on prior year's projected numbers and not actual figures. Redpath said because figures in 2005 were $1 million under budget that by using them the 2006 budget was immediately also under budgeted.

One issue the committee suggests the board resolve for the next budget is appointing someone to monitor the budget from its creation and throughout the year to avoid the problems highlighted.

"Someone needs to have ownership and responsibility for the budget," he said, adding that many employees from the comptroller's office were qualified but were already overwhelmed with duties.

The Town Board could use an independent person, or reformat the responsibilities within the finance department, which Redpath said should warrant compensation.

"Any additional cost would be well worth it to the town in the long run to have these issues addressed," he said.

Redpath also said that the committee reported the problem isn't only in 2006 but they have concern for the 2007 year.

"If the process continues you will find you will sit and have the same discussions again," he said.

The committee recommends department heads, the town board and the supervisor work together when creating the budget. With the addition of a budget watchdog, consequences when both overspending and under spending are detected should be applied to the department.

Colleen DiPirro, president CEO of the Amherst Chamber of Commerce, also brought attention to purchase orders being approved months before the town board is notified. She added a monthly budget report from department heads could help track under budget and overspending.

Also reviewing the budget were Peter O'Brien, former partner at Peat Marwick, Joseph Wold, CEO of Manning and Napier and Glenn Wiggle, a partner at the Bonadio Group.

The Town of Amherst currently sits between having the 2007 budget due in October and resolving the 2006 budget deficit.

Supervisor Satish Mohan's motion to review the 16-point SOS2006 Budget Management resolution from June was tabled until the Sept. 5 meeting.

"I would like to know where we stand," he said, adding departments have spent more money since May when the deficit was announced.

The 16-point resolution calls for action such as not allowing vehicles to go home with the exception of fire safety, reducing the work force by 5 percent and cutting overtime by 50 percent.