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Ashe presents fiscal update to Select Board

Date: 12/28/2009

By Courtney Llewellyn

Reminder Assistant Editor



LONGMEADOW - At last Monday night's meeting of the Longmeadow Select Board, eight-year board veteran and current state representative for the 2nd Hampden District Brian Ashe presented an update on the Commonwealth's financial picture.

"It's better, but we're nowhere near all better," Ashe summed up.

The freshman state rep noted that he went into the House facing a $4 billion deficit, which there was no way to get rid of without cuts and the "necessary evil" of an increase in the sales tax.

"It helped save towns like Longmeadow from making extreme cuts," he said of the tax increase.

Ashe mentioned the positive changes the state saw in the last year, which included transportation, pension and ethics reforms, as well as a decrease in the state's overall deficit.

"It's now at $3 billion," he stated. He added this figure will most likely result in "scary cuts" again, however.

"Where's the $3 billion coming from?" Select Board Vice-Chair Paul Santaniello asked. "And when are we going to know [budget numbers]?"

Ashe said the state has a plan but that nothing is going to get rid of it, and that the upcoming fiscal year may be worse than this one in a lot of ways because drastic cuts have already been made.

"Everybody's trying to be creative with ways to save money and generate revenue," he said. "It's going to be a long, slow haul to see the light at the end of the tunnel ... We're going in the right direction."

He noted several ways the state is planning on saving money - education reform, CORI reform and a look at unfunded mandates. The casino gaming issue will be discussed again as well.

Ashe added that he heard a "promise" - he doesn't know if it will be fulfilled or not - that the state will attempt to keep Chapter 70 (local aid) funding level with this year.

As for the town's resources, the Select Board unanimously accepted a revised stabilization fund policy.

The operational stabilization fund can now be utilized for emergencies and urgent and unforeseen expenses for which there are no other viable funds. The fund must also maintain a minimum balance of $1 million; if the fund must dip below that, a concurrent plan must be developed for replenishing the fund beforehand.

"I think it's great we're going to pass a policy on this," Select Board member William Scibelli stated.

Scibelli made the motion to have the policy accepted.