East Hamptonites Pipe Up at Brown Bag Mtg.

By T.J. Clemente

On Thursday, November 6, when the East Hampton Town Board held its "Amended Brown Bag Meeting," the first half hour was reserved for public comment, followed by 1 1/2 hours for budget discussion. With a crowd of 15, half of whom were reporters, the gathering moved from the conference room to the old courtroom. When Supervisor Bill McGintee called the meeting to order, with board members Julia Prince, Pat Mansir, Pete Hammerle and Brad Loewen present, the focus was on Debra Foster, the former Board member who has taken a keen interest in undoing her own misdeeds on a previous board that didn't factor in the cost of a growing town government against shrinking revenues. A few weeks ago, Foster stood humbly before the Pro-East Hampton Town Meeting held at the American Legion Post in Amagansett and admitted her errors to a hostile, mocking crowd.

Foster's remarks at the Board meeting Thursday were short. She submitted a report that she put together with three other influential former town officials proposing ways to save the town $12 million. At once, the Republican opposition in the crowd, vocalized by John Cirillo, raised the question of whether this was in fact "an alternative budget." With some sparring, McGintee made clear that he and the board welcome all ideas on how to run the town more effectively and efficiently. However he was confident that the board had covered all the bases.

Foster's submitted proposal covered these recommendations: Compare the trends of the last four town budgets. Put into effect a hiring freeze on new town employees and reduce the number of nonessential expenditures. Aim at savings of energy costs. Create savings through a new leaf collection strategy. Raise $250,000 through new beach permit fees. Enforce the $1,000 littering fines around town.

McGintee said he'd examine the plan to see if there were any new ideas that were practical for the town. In other comments, the voice of the people can best be summed up by the views of East Hampton Town resident John Tuohy, who stood at the podium and offered that, given the worst economic climate in our lifetimes and "unthinkable" consequences, the board shouldn't continue with business as usual. He implored the board to "consider radical approaches in your thinking" concerning funding the town budget.

McGintee answered that, of the $67-68 million town budget, $50 million of the spending is etched in stone in union salaries and benefits. Then, subtracting police expenses and health care costs, the town board is left with less than $2 million to fund 36 agencies. News at the meeting was that the East Hampton YMCA was getting $600,000 put back in the budget, and that the Island Group had yet to finalize how its insurance proposal would (or could) be equal to the Empire plan the town used as a measuring stick for reining in medical costs. McGintee's hope is to cap the cost for fiscal year 2009 at around $7 million. He called the old self insured plan a "crap shoot."

Ironically, while all of this was going on, in another room the reality was being explored, as Senior Auditor Ted Campbell and Assistant Auditor George Chahinian of the Melville firm Nawrocki Smith went over the receipts and figures of the real spending that lead the Town of East Hampton into this embarrassing situation. The town has been relying on short-term loans (with high interest rates) to cover expenditures until long-term loans from the state come in. Some believe these actions were almost criminal, and a county grand jury is investigating to see if there was misconduct.

Someone in the small crowd, rather than going to the podium, shouted out politely that the $50 million of fixed cost must be reduced either by renegotiating with the unions, or by other means to reduce future growth of that number. All board members seemed to agree wishfully, but none made a vocal commitment to investigate this explosive issue. When the public comments and budget discussions ended, it was clear that the Board, after reviewing testimony, knew what they were going to do concerning the 2009 budget.

But a warning was issued by an informed source who was not in the room, who said, "If they continue as they have, and if the budget becomes much larger than the town's income through its real income streams, the state is going to come in and take over the town. Mark my words, it's etched in stone."

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