Middletown Township taps Library for another $338K!

 (Here we go again, I told you so; another money grab by the Township of Library funds is underway )

by guest blogger Linda Baum

At last night’s Library Board meeting (6/20/12), it was announced that the Library had received a letter from the Township claiming the Library owed another $338,493 for its portion of pension, hospitalization, and workers compensation expenses for budget year 2012.  I was not provided a copy of the Township’s analysis, so can’t say if those are the only categories of expenses addressed in it, but those were the ones mentioned at the meeting.

Each year, a figure for these costs is provided by the Township for the Library Board to use in developing its annual budget.  The Township previously provided the figure for the Library’s 2012 budget, which has already been completed and approved by the Board after considerable discussion. 

Now, the Township is saying an error was made – by the Township – and a review of the numbers by the CFO has uncovered significant mathematical mistakes.

Board member and Township Committeewoman Stephanie Murray seemed to lay the blame at the Library Board’s feet, saying that these figures had not been thoroughly reviewed by former Boards.  She touted the benefits of increased board participation, even though, as I understand it, the Township had brought this matter to the Board, not visa versa.  (Board membership was increased from 7 to 9 this year.)

Library Director Susan O’Neal noted that the annual figure provided by the Township had shown increases over time, in line with what would be expected.  

It seems to me that Ms. Murray was overlooking the fact that the mistake – if that is really what this is -- was on the part of the Township.  Certainly, the Board has a right to rely on information that the Township provides.

A move like this by the Township was not unexpected by those of us who have been following what has been going on in the last year and a half.  While this is being “window dressed” as just an accounting error or math mistake, it was surely undertaken with the intent of justifying a transfer of funds.  The Library Board’s new Township-installed president, Larry Nelsen, called it “unfortunate”.  I think that is a pretty tame word for such an obvious tactic.

Board member Vivian Breen was critical of the move and questioned how accurate the Township’s own records can be if these kinds of mistakes are being made.  Good question. 

I asked the Board if they’d had a chance to thoroughly review the numbers provided by the Township.  Of course they could not have if the letter was only just received this week, and it’s unlikely much delving will be done given the make-up of the new Board.

So where will the money come from to the pay the $338K tab?  Roughly $313K will be taken from reserves and $25K from the materials budget. That means some materials that were going to be purchased won’t be.  There was no mention of whether the reserves are protected or unprotected reserves, and I didn’t ask since there seems little point in making the distinction anymore.  Further, any “protection” may not apply here because the funds are, technically, being used rather than taken.

Remember the parking lot expansion project?  That’s now off the table -- again.  However, the Board – specifically a few of the new Township appointees – said that no layoffs or branch closures are planned.  It seemed to me that the assurance was coming from the Township to encourage cooperation.