Goodbye FY'11, Hello FY'12

The $5.19 million deficit will be blown to smithereens by the end of this fiscal year.

The proposed FY'12 budget calls for $1.2 million less in spending loot than the current year's.

The tax rate is projected to take a nosedive by .59 mills.

And the dough to give kids a full day of kindergarten is included in the new budget proposal (the ball is now in the court).

So said in her state of the town/budget address Thursday night to a modest number of people inside the high school auditorium.

"Folks, last year I asked you to be patient as we faced a national economic crisis coupled with years of over-estimated revenues," Capone said from a podium on stage.

As she spoke, larger-than-life pictures were projected on an overhead screen, capturing the essence of the Town of East Haven: the , fire engines, , the Teen Center, the senior transport van, the ice rink and the town's first energy-efficient Christmas tree.

Capone is asking for $84,429,946 for both the town and schools for FY'12. Her request is $1,240,789 lower than the current budget. This would mean a drop in the mill rate from 26.84 to 26.25.

"Between this budget and the upcoming capital budget, the allocation to the Board of Education includes all-day kindergarten," said Capone. "A long, overdue service in East Haven. However, the Board of Education is autonomous by state law, so I can give them the money but it is up to the board to make it happen."

Capone told her audience that foreclosures have risen 467 percent since 2005. But "we are not alone," she said.

Using audit reports, the mayor pointed out that she has under-spent her last three budgets by $956,798 (FY'08), $1,036,675 (FY'09) and $947,788 (FY'10).

In addition to using the , Capone said the current $5.19 million deficit will be wiped out with the FY'11 and FY'12 fund balance appropriations of $2.8 million and $900,000, respectively.

Afterwards, Republicans were quick to poke holes in Capone's budget.

"Seemingly once again, a proposal of numbers that just don't add up," said this year. (The other Republican making the bid, , did not attend the budget address.)

"Once again, you have to roll out realistic budgets," said Finkle. "She's talked over again and again about over-inflating revenues. It's exactly what's happened over the last two to three years."

Perhaps no other single topic got more mileage Thursday evening than the mayor's proposal to use the $1.5 million airport payment to help reduce the deficit.

"Again she's relying on the sale of town property (to balance the budget) and it's not a done deal," said Republican Town Committee Chair Lou Crisci. "And if the public doesn't agree with selling that land, then the current budget is $1.5 million short again."

"Clearly, clearly to have balanced the budget by the sale of town property ... it's a bluebird. It's not something you budget for," said Finkle. "The Town Council has yet to even vote on whether we're actually selling this property or not. So to be actually adding that into the 2010-11 budget at this point really is what got them into trouble."

 "What we didn't want to see happen was for to get that money and use it for something else," Capone defended the sale. She said she expects the "powers that be" to approve the sale.

The mayor's spending bill now goes to the Town Council for approval. Budget workshops begin April 4 at 7 p.m. at the Senior Center.