Questions from the Budget Committee Meeting Part I: Is the Budget Committee Going to Far?

     At the last Budget Committee meeting, Dan Golden raised the question of whether the budget committee is going too far in its meeting with the various town departments? I have also heard a number of other people in town ask the same question. But, what does going to far mean? Is it a matter of asking for too much detail or going into too much depth? Is it a matter of questioning the expenditures themselves? Or, is it a matter of asking questions that reveal problems with the way the town manages its money?

     According to RSA 32:16 and 32:22 (reprinted below), budget committees can request information on spending, revenues, and services in the detail they require, and it compels town officials to provide the information. RSA 32:22 restricts budget committees from disputing or challenging officials over expenditures. These RSAs indicate that the budget committee can ask for as much financial detail as it needs to prepare the budget, but it cannot question an official's discretion over expenditures.    I want to discuss Steve Heath's report to the committee here and Lee Nichol's report in another article. At the meeting, Fire Chief Steve Health was asked to give the committee an update on the department's spending. Steve could have given a general report and reviewed the financial reports for the department. Instead, he went through his budget line item by line item, in some cases providing more information than the budget committee needed to do its work. Here are some examples from Steve's report.

• The Heating Fuel line. Steve reported that the heating fuel line was almost expended. He also said that the price of fuel had increased and that he saved some money on fuel by having the furnace cleaned. The budget committee only asked Steve to review his spending, not explain how he maintains his equipment and facilities.

• Mandatory Testing. During a discussion of testing, Steve explained that certain tests are required for certification, and that sometimes equipment must be replaced as a result of testing. David Reull asked Steve to identify which tests are mandatory so that the budget committee could include the costs for those tests in the default budget. However, the committee did not ask Steve to describe or justify the tests.

• Repair of columns in the Fire House. Steve was asked about the cost for repairing the columns in the fire house. He explained that they were considering replacing the bottom of the columns with granite to prevent deterioration due to salt. The committee only asked for cost figures and not the method of repair.

• Maintenance Line. Steve Heath said that he had spent about 10% of his maintenance line. Steve Felton said the the financial report showed the maintenance line had been nearly spent. In the ensuing discussion, Steve Heath said that his figures were based on what he had actually signed for, but the financial report contained other charges for fire department maintenance. The budget committee needs to know how expenses are accounted for to understand what the financial reports actually mean.

     Did the committee go too far? Dan Golden felt that the committee was "grilling" Steve Heath. That may have been because of the detail Steve provided rather than actual questions asked by the committee. However, the information was useful in helping the committee and the public understand how the Fire Department spends it money. It was also useful in uncovering some minor problems with the way charges are made to the Fire Department's accounts and the way Steve tracks spending.  

     Did the committee or anyone on the committee intentionally try to embarrass Steve or the town? I have already pointed out that the committee focused on budget issues. Steve showed a highly detailed understanding of his budget, and also showed that he is an effective manager who makes well-informed decisions. If there are problems with the fire department budget, they have to do with long-term planning. We should be saving now to replace large pieces of equipment and upgrade facilities.




References
32:16 Duties and Authority of the Budget Committee. – In any town which has adopted the provisions of this subdivision, the budget committee shall have the following duties and responsibilities:
     I. To prepare the budget as provided in RSA 32:5, and if authorized under RSA 40:14-b, a default budget under RSA 40:13, IX(b) for submission to each annual or special meeting of the voters of the municipality, and, if the municipality is a town, the budgets of any school district or village district wholly within the town, unless the warrant for such meeting does not propose any appropriation.
     II. To confer with the governing body or bodies and with other officers, department heads and other officials, relative to estimated costs, revenues anticipated, and services performed to the extent deemed necessary by the budget committee. It shall be the duty of all such officers and other persons to furnish such pertinent information to the budget committee.
     III. To conduct the public hearings required under RSA 32:5, I.
     IV. To forward copies of the final budgets to the clerk or clerks, as required by RSA 32:5, VI, and, in addition, to deliver 2 copies of such budgets and recommendations upon special warrant articles to the respective governing body or bodies at least 20 days before the date set for the annual or special meeting, to be posted with the warrant.

32:22 Review of Expenditures. – Upon request by the budget committee, the governing body of the town or district, or the town manager or other administrative official, shall forthwith submit to the budget committee a comparative statement of all appropriations and all expenditures by them made in such detail as the budget committee may require. The budget committee shall meet periodically to review such statements. The provisions of this section shall not be construed to mean that the budget committee, or any member of the committee, shall have any authority to dispute or challenge the discretion of other officials over current town or district expenditures, except as provided in RSA 32:23.