Is it possible to freeze a town budget for two years?
by JESSICA L. FINCH Associate Editor

Supervisor Satish Mohan said he wants to freeze the Town of Amherst's budget for the next two years.

(See editorial on page four)

He made the statement during his State of the Town address, part of the Amherst Chamber of Commerce's annual luncheon, held on Friday at Classics V Banquet Center.

"I will propose a two-year, 0 percent increase in the expenditures for 2009 and 2010," he said. "In other words, we will freeze the budget at the current level for two years."

His bold aim sparked conversation in the town, especially among council members. They discussed it during Monday's work session. Mohan was not in attendance.

Council Member Guy Marlette, who Mohan named in his speech as suggesting the action, said for a 0 percent growth budget to be possible, everyone in the town would have to work together.

He said discussions about reducing the budget make people automatically think employees will be cut, but there is another 42 percent of the budget that has to be dealt with. Of the town's $115 million budget - 58 percent is for employee salaries and benefits.

"We can be more efficient," he said. "If we increase revenue and decrease expenditures, there can be a reduction in taxes."

He emphasized that no one can do it alone; the department heads, Town Board and bargaining units have to cooperate.

Marlette said the first step is to get a handle on the budget, understanding the true cost of government - department by department, the true revenue stream and the true cost of running each department and where real efficiencies and cost savings lie.

At Monday's work session, recently appointed Comptroller Darlene Carroll presented her first monthly update, in which she recommended the board start the 2009 budget process soon if the goal of no tax increases is to be possible.

"I encourage you to make a plan and start working together early," she said, adding that the contractual obligations will make a frozen budget difficult.

Also, ever rising health insurance and utilities, and other costs that are out of the town's control, have to be considered. Carroll said something would have to be done to offset those costs.

Council Member Dan Ward threw out the question that many people fear: would that mean personnel cuts?

Mohan told The Amherst Bee on Tuesday that many retirements are expected this year, and at this time there is no plan to lay off anyone.

"Just like a family has to organize a budget, we have to do the same here," he said.

Mohan said he is starting an investigation into each department's spending and efficiency. When asked if he already knew of any major issues he said yes but would not elaborate.

"We will start the process, start meeting with department heads," he said.

In response to mandated spending, he said there are two or three contracts due this year, and he hopes to start making some progress there.

The Jan. 25 State of the Town Address was Mohan's third. He also drew attention to past budgets, saying from 2000-2005 the budget had increased 5.3 percent per year. In the last two years the increase was 2.5 percent.

"The tax levy in 2008 will decrease by $1 million, a 1.25 percent decrease. ... We have never reduced the tax levy except once in 2000," he said.

He said the rate of tax increases has to be slowed or else residents won't be able to sustain the cost. Mohan said if the town budget had increased at the rate of 5.3 percent, it would have reached $170 million in 2020.

Mohan also highlighted that construction activity was milder in 2007 than previous years. At $31 million for single family homes, the total was far less than just five years ago when the total was $52 million in 2003.

There were some construction positives, with major projects at Millard Fillmore Suburban Hospital, Daemen College and Citicorp at Crosspoint.

In 2008, Mohan said the focus will be on infrastructure, flood control and sinking homes. Also, the relationship between the town and the University at Buffalo will remain a major topic.