Saugus FinCom balks on funding teachers

SAUGUS – Despite reassurances the money will be there, the Finance Committee declined to commit to fund the teachers contract Wednesday at the same time Superintendent Keith Manville made it clear that the School Department could not afford it.The Finance Committee put Town Meeting on hold when it stopped short of making recommendations on five financial articles on the warrant for the special Town Meeting that opened last week. Among those articles is a request for $330,000 to fund the Saugus Educators Association contract settled in September.Health insurance consultant Jack Sharry told the committee Wednesday he estimates the town, by enrolling in the state’s health insurance program, would realize a savings of $372,957 by June 30, 2008.”But you can’t guarantee that,” Finance Committee Vice Chairman Ken DePatto said quickly.While Sharry admitted he couldn’t guarantee the savings, he said he would be completely comfortable with transferring $330,000 from Group Health Insurance.But Finance Committee members indicated they were not so comfortable with the idea in light of other financial difficulties facing the town.”I cannot be clear enough,” Manville said. “If I have to make this work out of my budget there is someone or something that will not get paid. There is a bill that will go unpaid. I cannot do this.”And he argued that when the contract was settled he was assured he wouldn’t have to.Manville said there was pressure to get the teachers to sign onto the state’s Group Insurance Commission because the SEA made up 54 percent of the town’s union members and the town needed 70 percent to sign on to the deal.During negotiations, Manville said he made it clear he had no money in his budget for raises. But, he said, because of the need to have the SEA sign onto the GIC he was assured, he said, by several town officials, the money would be there.”I was given a figure – bring it in under $350,000 and we’d be okay,” Manville said.With Town Manager Andrew Bisignani taking part in each negotiation session, the contract was settled for $330,000.But now, whether the town will pay up is largely in the hands of the Finance Committee, which makes recommendations to Town Meeting. Meeting members don’t have to follow Fin Com’s recommendations but they generally do.”I feel totally responsible for this,” Manville said. “Professionally, personally, honorably as an officer and a gentleman, however you want to look at it I owe (the teachers) $330,000.”Finance Committee Chairman Robert Palleschi said he wasn’t saying the committee wouldn’t recommend funding the contract, but he wanted Town Meeting members to have the big picture.”I don’t want three months from now to be criticized for funding raises,” Palleschi said.DePatto agreed, saying he wanted meeting members to be aware that if they funded the teachers contract, it would likely be at the expense of closing the library, the Essex Street Fire Station and shortages in Public Safety services.”I do personally have a problem with funding additional spending when we have a budget that is essentially not balanced,” he added.Palleschi said if Bisignani could put together a snapshot of what the town might look like financially in June, the committee could likely make its recommendation on funding the raises by Dec. 10 when Town Meeting reconvenes.Bisignani said he could put together some estimations of when money might run out for the library, public safety and other departments, but he did not want to be held to them.Palleschi said they would revisit the issue next Wednesday.