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Cities and towns wait for budget cut announcement

Date: 1/27/2009

By G. Michael Dobbs

Managing Editor



SPRINGFIELD Although the subject of reading to children was certainly an important message for Lt. Gov. Tim Murray to support, there was another topic on the minds of reporters: the impending state mid-year budget cuts.

And that story may not have too happy an ending. Murray said that communities should be preparing for cuts up to 10 percent on local aid.

"We think it's only prudent because we don't know where the bottom [of the economic downturn] is," he said.

Murray was in Springfield on Thursday, first at the Make Way for Ducklings pre-school and then at the Baystate Mason Square Neighborhood Health Center to read to children to promote the "Reach Out and Read" program. The program encourages reading by distributing free books to parents when they bring their children in for check-ups. By the time a child in the program enters school, he or she should have at least 10 books. Baystate has been in the program since 1998 and annually provides books for 1,200 children.

Murray said local elected officials would be hearing from Gov. Deval Patrick on Friday during the meeting of the Massachusetts Municipal Association. The state will then learn on Jan. 28 about the mid-year budget cuts Patrick will be making as well as his FY10 budget, which is expected to be more austere than the previous year's plan.

"Unfortunately the fact of the matter is there will be cuts in local aid and a bunch of good programs across the state. But we are looking now at a $2 billion hole in the FY09 budget and a $3 billion hole in the FY10 budget," he told Reminder Publications. "There aren't any easy answers and there aren't any good decisions because we know every city and town and every program that touches state government are going to be impacted negatively."

The cuts are going to be done as "equitably as possible," he added.

In reaction to a new jobless rate that tops 7 percent in Massachusetts, Murray said the Patrick administration has been working on a number of public works initiatives as well as those in the private sector that will create jobs. Adding to these plans is the highly anticipated federal stimulus package, which Murray said should "piggyback" the state's efforts.

Noting that casinos across the country haven't escaped from economic problems, he said they are not a "panacea," but added the administration has not closed the door on re-introducing casino gambling in the future.

"It's not our first option in how we're going to address this challenge," he said.



***

On Friday, Gov. Deval Patrick told members of the Massachusetts Municipal Association at their annual meeting that he "will prevent cuts to so-called Chapter 70 education aid during the next round of mid-year spending reductions he will make next week," according to a press release issued Friday afternoon. Additionally, he will hold state funding for city, town and regional schools at the FY09 level of $3.984 billion in his FY10 budget plan. That level was a six percent increase over FY08, which was an all-time high for state school funding.

For FY10, Patrick's budget will combine Lottery and Additional Assistance Aid into a new category called General Government Aid. Combined with level funding of school funds or Chapter 70, local aid will be cut by $375 million, or 7.1 percent below FY09.

Patrick will seek passages of a number of means to help municipalities earn additional local income. These include:

A one cent increase in the statewide meals and room occupancy taxes that would generate approximately $150 million statewide which would be distributed using the existing lottery formula.

He will also refile his proposal to eliminate an outdated property tax exemption for telecommunication companies.