There was over $2million in Free Cash when the recommendations from Town Administrator, Select Board, and Finance Committee recommended moving money to the Stabilization Fund. In that case the Citizen’s Request for UP TO $600,000 — there was never a request for $600,000 – would have been a much smaller percentage of cash available. Hold that thought.
What is Free Cash and where did the money come from? Free Cash is essentially the dollar amount of mistakes, that is, it is the money budgeted but not spent, left over from the previous fiscal year. It is generally used for one-time expenses or to replenish other reserves, according to the Division of Local Services (DLS). Stabilization Funds, on the other hand, are designed to be long-term reserves for emergencies, capital projects, or other lawful purposes.
Why move it? The positive reason is that towns might move funds between Free Cash and the Stabilization Fund for various reasons. Moving money from Free Cash to a Stabilization Fund helps municipalities build a financial cushion for unforeseen events or future needs, such as capital projects or emergencies. The negative reason is in the definition. Hang on one minute. Before we answer that.
The Select Board is the Executive Branch of this Town. Town Meeting, that’s us, is the legislature. SB’s job is to collect and spend BUT ONLY WITH the approval of TM. What about Finance Committee? Ever wonder why FC is appointed — not elected — by the Moderator? Because it is a committee of Town Meeting and what is it supposed to do? It is meant to advise (not convince or instruct) us
Now back to the possible negative reason: Once in the Stabilization Fund, it is harder to access. While Free Cash can be used if approved by Town Meeting with a simple majority vote; Stabilization Funds requires a 2/3 vote. Finally Free Cash is intended to be depleted not carried over year to year.
The people are not perfect, but neither are our representatives. No one is. Democracy works with shared power not one branch (executive or legislative) working to the exclusion of the other.
Finance Committee? They stepped into a role they carved out for themselves years ago — rule at is it rather than represent us. Rather than empowering we-the-people by giving factual, objective information for our informed decisions, they attempt to convince us to vote as they wish.
