Bissonnette's FY10 budget has no layoffs, no additional fees

Date: 7/7/2009

By G. Michael Dobbs

Managing Editor



CHICOPEE -- Mayor Michael Bissonnette said the passage of the city budget for fiscal year 2010 (FY10) represented "one of my proudest moments since I became mayor."

At a press conference on Wednesday, Bissonnette said despite having millions of dollars less in state aid, there would be no layoffs of city employees and no additional fees.

He said the city's department heads have been preparing for a drastically decreased budget since last November. With reports of a possible 15 percent decrease in state aid, Bissonnette instructed them to prepare for the worst.

The key to avoiding cuts and fees this year is the city's receiving $7 million in federal stimulus funds for the city's schools over the next two years and the use of $3 million from the city's stabilization fund, Bissonnette added.

He noted although the state budget is in place, which sets levels of state aid, changes in state revenues could trigger cutbacks from Boston that would affect cities such as Chicopee.

He described current state revenues as "abysmal." If the negative trend continues, local aid may be cut again, Bissonnette predicted.

"This is not the time to let our guard down," he said.

City Auditor Sharyn Riley said the creation of the new budget "has been a struggle."

The city has about $7 million in reserves, which Bissonnette noted was more than when he took office. Another sign of the city's financial health is its bond rating that allows it to borrow money for as inexpensive a rate as one percent. He noted a recent flood control project was bonded at the one percent rating.

"I'll take as much one percent money as I can get [for city projects]," he said.

The creation of this budget was the first time in the city's history that members of the City Council were invited to sit in on the meetings between the mayor and the department heads.

City Council President William Zaskey described the process as "a learning experience."

Bissonnette acknowledged the advocacy of both Police Chief John Ferrero and Fire Chief Stephen Burkott in fighting for resources for their departments. He also thanked the respective unions for their roles in the budget negotiations.

In order to maintain proper staffing of the city's ambulance service, the administration and the Fire Department worked out an agreement that the department's new recruits will work their first 16 years on the ambulance.

This move, along with the decreasing overtime, special services and consultants, was a an effort to avoid the lay-off of firefighters and the elimination of the ambulance service, the mayor explained.

The city receives about $1 million a year in revenue from the ambulance service. Of the 9,000 calls the Fire Department receives annually, 7,000 of them are for the ambulance, Bissonnette added.

Ferrero said the Police Department has had a priority of pursuing grants to purchase equipment and fund programs in order to save the city money.

"We're going to continue on that path," he said.

The chief noted that Chicopee is probably the only community with a police department in the area that answers every call.

Bissonnette said the change in relationship between the administration and the School Department also benefited the city.

"It used to be us versus them," he said.

School Superintendent Richard Rege said he felt fortunate because, unlike his colleagues in other communities, he is not faced with imposing bussing or athletic fees.

Rege was challenged by the state's cut in Chapter 70 monies (state funding for education), which in Gov. Deval Patrick's original budget was going tot be level-funded from last year's figure. Instead, Rege explained, there was a two percent cut, which translated into a $1.2 million decrease for Chicopee schools.

Rege, who had $2 million in the School Department reserve fund, now has $800,000, which he called a concern. The federal stimulus money used to help fund the schools will not be available for the next budget period, he said.

Rege said one more consideration for the city and its budget will be the upcoming negotiations for a new contract with the teachers' union.

He also didn't see any reduction in unfunded mandates programs imposed on local school districts by the state and federal governments that are not funded by them and he said he is going to watch how the federal government handles the renewal of the No Child Left Behind Act, a major source of unfunded requirements for schools.

Despite the budget challenges, Rege said, "The children of Chicopee will have an outstanding educational experience going forward."

Bissonnette said the entire budget document will be posted on the city's Web site, www.chicopeema.gov.