Deep Dives Key Budget Strategy

            While Chairman Shay Assad made it explicitly clear that every member of the Marion Finance Committee is invited to participate in every aspect of the town’s budget discussion, he introduced a strategy aimed at minimizing the possibility that the committee could miss something important.

            In explaining the workings of the committee to four new members on December 6, Assad said he has asked particular members to take deep dives, dividing their efforts to every important section within the budget “so that we’ve got at least one or two members who are intimately familiar with all the detail, rather than simply having (a department head) come and make a presentation that night.

            “It’s not like we’re trying to pigeon-hole people into certain sections, but we found that we get a better rapport with department heads, for example, like somebody’s got to look at the revenues for the town, and sit down with the finance director and understand, okay, where are we with all our revenues? … Why did we project what we projected?”

            Assad divided budget categories by Fire and Police departments, the Department of Public Works, Water/Sewer, and schools.

            “I’ve spent the last three years – and Bill Marvel has been part of that – looking at the schools, and we have kind of changed things a little bit,” said Assad, alluding to a former lack of transparency in the budget process and the tri-town finance committees’ frustration. “We had a really poor relationship with the (Marion) School Committee and with the schools, we really did. And it was more of an inquisition than it was working as stewards of a town and trying to understand … I think people all had their best interests certainly, but it was not productive.”

            Assad’s concerted effort toward that end coincided with new administration at Old Rochester, where Superintendent Mike Nelson and Assistant in charge of Finance Howie Barber became the district’s key stakeholders.

            Greater transparency was eventually achieved, and the process became more of a partnership. Even so, Assad anticipates a difficult budget process for the ORR District, especially given adverse effects of remote education during the COVID-19 pandemic. He told the committee that many children are on individual education plans as a result.

            “Our role isn’t to set the requirements for the town,” Assad explained. “In the past … we stepped back and forth in arguing more about requirements than about … do we have the wherewithal to afford what it is that the town wants to do? … Our principal role is to recommend to the townspeople should they or should they not accept certain financial articles. That’s what our responsibility is.”

            Assad identified the statewide decline in enrollment as a key issue but said the FinCom works as a financial advisor to the school committees, the voting bodies. Assad clarified that FinCom’s role is not to vote on the school budget but to decide if the town can afford that budget.

            Jay Pateakos, Assad pointed out, served on the school committee and is an example of expertise that the committee can draw upon when it comes together to discuss the information revealed in any designee’s deep dive into a particular department’s budget. Assad also clarified that he is not trying to establish liaisons to departments. The job is to get the information.

            “And we’re looking at, like each budget you’re looking at ‘under 2 percent increase,’” said Pateakos. “So usually, when the budgets get over 2 percent, that’s when we start getting to work on why is it higher than 2 percent. … I think the schools did a great job last year. Sippican was under 2 percent, which is the first time I think I’ve seen that in a long time.”

            “They’re hurting this year, though,” said Assad, referencing the high cost of special education.

            “Special (Education) is probably the best example. We just have to pay, we have no choice,” said Pateakos.

            New member Shawn Healy volunteered to accompany Assad in the school budget process.

            Pateakos also warned the new members attending the December 6 meeting that the Capital Improvements Planning Committee meets weekly for 6-8 weeks and is a job for a retired committee member. Fred Mock had already volunteered to sit on the CIPC. Assad anticipates $100,000,000 in total projected proposals under the consideration of the CIPC.

            In general, this is the calm before the storm for the Finance Committee. Assad noted that Town Administrator Geoff Gorman is interviewing department heads and getting his comprehensive house in order before the FinCom begins its analysis of each department’s requests for FY25.

            “It starts to get hot in the kitchen in January. … Basically, Geoff is expecting to get his budgets from town departments in the next week,” said Assad, explaining that Gorman’s discussions with department heads will culminate in several meetings with the Finance Committee beginning in mid-January and lasting through the first week in March.

            At the start of the meeting, Assad welcomed four new members to the committee.

            Tom Crowley, a Tabor Academy graduate … went to the Naval Academy in 1974 and had been working for the Navy as a civilian up until about two years ago. “I moved back to the town in the spring, look forward to contributing.”

            Healy moved to Marion in 2021 but noted that his wife is from Rochester. They have four children, the older two attending Sippican Elementary School. Healy has a background in financial services and worked at Putnam for 15 years and has an MBA in Finance and is a member of the CFA Society in Boston.

Michael Sudofsky, a 22-year Marion resident, told the committee he started at Case Western University and worked as an engineer in Germany building plastic products, then imported products to the U.S. He owns a couple of commercial properties in Marion and is “very involved in the village.” Like Healy, he lives on Front Street.

            Dave Herron moved to Marion in 2016 after “14 years exiled in Chicago.” He worked in the Chicago Stock Exchange and in the financial-services industry for Charles Schwab and later Fidelity Investments.

            “It’s great to have a full committee,” said Assad, who noted that Gorman and Select Board representative Toby Burr were unable to attend because they were attending a CIPC meeting being held simultaneously.

            The next meeting of the Marion Finance Committee is scheduled for Wednesday January 3, 2024, at 7:00 pm at the Town House conference room.

Marion Finance Committee

By Mick Colageo

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