East Hampton board agrees to reorganization of Budget Advisory Committee

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The East Hampton Town Budget Advisory Committee, which was formed just more than a year ago to help the town delve into the depths of its financial problems, has been given an expanded mandate and will likely be increased to nine members, from an initial five.

The move was made after the three remaining members of the original committee—Bob Kouffman, Bernard Kiembock and Joe Gaviola—gave a presentation on their needs to the new East Hampton Town Board at a work session on Tuesday, February 2.

In what was described publicly by many at the meeting as a “lovefest” between the Budget Advisory Committee and the Town Board, Mr. Kouffman, the group’s chairman, presented a list of his suggestions for how the committee could better interact with the Town Board.

Not long after the committee was formed last December, it was stalled by then-Town Supervisor Bill McGintee, who tried at the time to limit the group’s impact and the scope of its inquiry and did not want to have the committee’s meetings televised. Dominick Stanzione, who was not yet a councilman at the time, paid to have many of the meetings televised. On Tuesday, Mr. Stanzione urged the remaining committee members to take a four-pronged approach to the town’s finances, concentrating on operational efficiencies, financial controls, capital budget management reform and Community Preservation Fund reform.

“We have said from the get-go how important you are to us,” Supervisor Wilkinson told the committee members. “Twelve pairs of eyes are far better than two. ... Engage your minds and eyes for our benefit.”

Mr. Kouffman told the board that he plans to have his committee help find the $10 million to cut from the $72 
million town budget that GOP board members had pledged to cut during 
the campaign last fall.

“We’re certainly going to try to do everything possible to get you to that point,” he said.

Mr. Kouffman added that he believes there should ideally be nine members on the committee so he can better delegate responsibilities for in-depth evaluations of cost savings measures. He said he had spoken with one person who works in information technology, one who works in finance and a number of business owners who are interested in serving.

“They’re all intelligent, and they all understand the community,” he said. “I believe they will take a very common-sense approach.”

Mr. Kouffman said that he hopes the committee will hold two public televised meetings per month, the second of which he hopes Town Board members will attend. He also requested the presence of Town Budget Officer Len Bernard at many meetings.

Mr. Kouffman championed the committee’s “independence of areas of inquiry” and asked that the board provide the committee with unfettered access to town departments that it is investigating.

“Are you taking direction from us?” asked Town Board member Theresa Quigley.

“We feel we need the independence of inquiry. The committee does not want to be a rubber stamp to the Town Board,” responded Mr. Kouffman.

Mr. Stanzione said that he was in favor of that approach, as long as the Town Board was not acting as a rubber stamp for the Budget Advisory Committee.

Mr. Wilkinson said that he had “a laundry list that’s six pages long” of areas that he would like the BAC to explore.

“If the goals are clear, it’s a function of trust that we’re on the same page together,” said Ms. Quigley.

Mr. Bernard, who was at the work session, urged the BAC members to first look closely at operational efficiencies.

“That goes right to the budget,” he said. “And having good accounting, that’s the only way we make smart budget decisions. We don’t have a lot of faith in our accounting systems right now.”

Mr. Wilkinson said as well that he plans this Friday to hold a press conference with New York State Senator Ken LaValle and New York State Assemblyman Fred Thiele to announce a push for as much as $15 million in additional deficit financing, which would need to be approved by the New York State Legislature, to cover operating deficits of unknown quantities from 2009 and perhaps 2008. The town has already borrowed $15 million in deficit financing based on a projected $15 million deficit at the end of 2008, but the only audited figure to date shows that the town had only a $10 million deficit at the end of 2007.

“I have no faith yet in where we stand as an organization, financially. We’re down to $15 training programs that I’m saying ‘No, we’re not doing it,” said Mr. Wilkinson. “I cannot tell you how frustrated we are.”