Thursday, January 10, 2008

Menu to go?

Commenter ECON101 has a interesting question about the menu or a la carte override on Curt Brown's Dartmouth Beat blog. Link here
ECON101 asks:

While the idea of a dozen or so mini-overrides on the same ballot is interesting, how would these overrides be implemented? Overrides are permanent increases ... not one-time one-year cash infusions. Or is the SB suggesting mini-debt-exclusions that last for a certain number of years and then expire?

For example, if $x is voted for trash and recycling, then is every SB from now on required to budget at least $x for trash and recycling

That's a great question and I believe that the answer is no, they don't have to continue spending the money on X, if the override was for X. See my post on the town budget process here.
If you think differently or have knowledge of the laws in this regard, let us know in the comments below
UPDATE
I looked up the MGL section regarding overrides. You can find it here.(Section 21C f & g) I may be in error in my original post that the amount would not have to be approved each successive year by the Select Board. The local appropriating authority referenced in the statute is the Select Board for towns with our form of government. I am not a lawyer and have no particular expertise in municipal government finance. Perhaps someone with knowledge in this area could leave a comment and clarify the question

1 comment:

Anonymous said...

First let me complement you on your initiative to start a blog. This is a great way to share info.

Here are my thoughts based on what I have learned over the last few years dabbling in the system.

Let's start with some basic definitions. A Capital Exclusion is money for a specific reason, and it only lasts for 1 year (no debt, just the actual cost). A Debt Exclusion is similar except that it goes for a number of specified years, and includes the cost of borrowing the money (debt) as well as the actual cost for which it is allocated. The difference between these 2 is similar to whether you pay off your credit card at the end of the month to avoid extra charges, or pay the bill over time in which finance charges occur.

Now, overrides are a different animal. All override money goes into the General Fund for general distribution, and is not legally tied to any specific thing. If you vote for an override for a stated specific purpose it is basically the honor system that they will spend it for that purpose. I am not suggesting that they wouldn't but there is no requirement that they do so. This is true for the first year and all successive years. Overrides are forever unless canceled by a vote for an underride (fat chance, but possible) by the voters. Some communities have done this over the years but not many.

Even if the expenditure for the "promised" need goes away, the override stays. The bottom line is that you have to trust that they will spend the override money on what they said they would, now and forever, and that the need is permanent.

Again, there is no reason to believe they wouldn't do what they proclaim since that would be political suicide and the residents would really be up-in-arms. It would be really foolish to ask for money to keep the COA open then close it in a following year.