Chair proposes 15% temporary transfer of unused departmental appropriations to contingency account

The chair (S1) proposed that the board consider, at a future meeting and subject to attorney review, transferring 15% of each department’s remaining unused operating appropriations (excluding salaries, employee benefits, debt service and legally committed funds as of an agreed cutoff date) into a general fund contingency or an interest-bearing New York-class account.

"It's not cutting department budgets," Chair (S1) said during the work session, adding departments could request transfers back if they needed funds later in the year. The chair said the goal is to create a temporary contingency that could either earn interest or be available to offset rising expenses so the tax rate would not have to absorb the full impact next year.

Committee members asked for clarification on the cutoff date and mechanics; Chair (S1) said the date suggested in discussion might shift and that treasurer and comptroller offices would be consulted before the item appears on the formal agenda. Committee member (S7) and others discussed whether some smaller account balances could be moved immediately into New York-class accounts to earn interest, with staff asked to review which accounts are eligible.

The proposal follows attorney guidance reported earlier in the meeting that a $535,000 pool could not be used to make restitution directly to taxpayers and must be returned to the general fund if recovered (summary provided by Committee member (S5) citing attorney conversations with NICOM and the state comptroller). Chair (S1) said the proposal and legal review would be on the next meeting’s agenda for formal consideration and vote.

Next steps included treasurer review of operating budgets and account balances and placement of the transfer proposal on the next regular meeting agenda for a formal vote after attorney review.