We Would Like To Know, What is "Unfavorable Expenditure Budget Variance‏" ?

          WHAT IS “UNFAVORABLE EXPENDITURE BUDGET VARIANCE”

I’ll bet you are wondering what “unfavorable expenditure budget variance” means and how does it affect you?  I have tried several times to get the town to explain what this term means.  No one in the town or Town Council could provide me with the answer.  So I decided to contact the Office of the Maine State Auditor.  Mrs. Mary Gingrow-Shaw, Deputy State Auditor, called me back and provided me with an explanation for “unfavorable expenditure budget variance”. 

The Town Council approves the yearly budget when the Revenue equals the Expenditures.  At this point, taxpayers know how much their taxes are going to go up.  However, at the end of the year, if the town has spent more than what was approved and had to take it from the Undesignated Fund it is called “unfavorable expenditure budget variance”.  In the case of last year, the town spent $223,514.00 of our tax dollars OVER what was approved by the Town Council.  I believe that the Town Manager and the Finance Director concealed the fact that they were spending funds from the Undesignated Fund.  As a result, the Undesignated Fund balance is below the recommended level outlined in our Charter to protect the town from going bankrupt.

This type of reckless spending is going to continue to raise our taxes year after year until someone steps in and puts a stop to this irresponsible spending.  It is imperative in this year’s budget that nothing that is not critical be purchased.  Another way to get the town back on track is to turn the Dispatch Center over to the County.  This will save the town approximately $500,000.00 tax dollars.  The Communication Center is the responsibility of the County since the Androscoggin County Dispatch is the Public Safety Answering Point (PSAP) for this area.  What does PSAP mean to you?  It is the point where all 911 Calls are received and where Police, Medical and Fire should be dispatched from since they are the first to receive the 911 call.  Lisbon is NOT a Public Safety Answering Point (PSAP).

Reducing spending is the responsibility of both the School and the Town!!!!!

Larry Fillmore