massdee
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Posted - 02/01/2009 : 09:09:44 AM
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The Boston Globe State's cuts forcing loss of local jobs and services Cities, towns fear worse next year By John Laidler Globe Correspondent / February 1, 20
City and town leaders are glumly preparing to slash local services and jobs to absorb steep cuts in state aid this year and further reductions anticipated next year.
Melrose Mayor Robert J. Dolan predicted that without a full package of municipal relief measures, "Statewide, you are going to see some historic reductions in services, including substantial layoffs."
In a pair of blows to already cash-strapped municipalities, Governor Deval Patrick announced last week that he was cutting $128 million in local aid as part of a plan to close a $1.1 billion budget deficit this fiscal year, and proposing another $375 million in cuts next fiscal year.
Revere Mayor Thomas G. Ambrosino said the midyear reduction "was not unexpected, though the extent was probably the worst-case scenario that we were looking at."
He said the city, for which aid was slashed by $1.2 million, "will respond by cutbacks in personnel and hours and services and use some reserves." Ambrosino predicted about 10 layoffs.
Lynn Mayor Edward J. "Chip" Clancy Jr. said the city's $2.7 million in midyear cuts will cause "substantial reductions in services," including layoffs in most departments. "There's no way we can ride this out," he said.
Clancy, who will hold a special meeting with the City Council Tuesday at 6:30 p.m. to discuss the current cuts, said it was premature to evaluate the city's local aid picture next year "given all the variables" involving federal, state, and municipal finances.
Layoffs are also expected in Haverhill, which got a $1.2 million cut for the current fiscal year, which ends June 30.
"There's absolutely no way around that," said Mayor James J. Fiorentini, predicting that the next fiscal year would also be "extremely difficult."
Beverly Mayor William F. Scanlon Jr., whose city absorbed a $708,245 cut, said that "through a combination of freezing expenditures in some areas, limiting overtimes to an emergency basis, holding off on any new hires, I think we will get through this year."
He said he is waiting to see how the dust settles on the next fiscal year, "But it does sound as though it's going to be even more difficult than this year."
Salem is exploring options for absorbing its $836,631 cut, according to Mayor Kimberley L. Driscoll.
"We're hoping we can forestall any layoffs till the end of the fiscal year. But there's no guarantee we'll be able to do that, and all options are on the table in terms of raising revenue and limiting expenditures," she said, noting a hiring freeze is already in place.
Driscoll said layoffs are a "foregone conclusion" next year.
Municipal leaders said the state could reduce the severity of the cutbacks by providing them with new revenue-raising and cost-saving tools.Continued...
Patrick has proposed a number of relief measures. Among them are encouraging regionalizing services; eliminating telecommunications tax loopholes; and giving cities and towns the option to levy a penny tax on local meals and an additional penny tax on hotel stays.
The governor also has proposed reducing the level of union support needed for communities to join the state's health insurance system. Communities that don't join would be required to develop equally economical health plans or face cuts in local aid.
Melrose's Dolan, who is president of the Massachusetts Mayors Association, said mayors support the governor's proposals, and some are advocating further changes, including letting municipalities design their own health plans without union approval.
"We certainly acknowledge that these are historic times and that there need to be reductions. But we are asking for something more than just belt-tightening," he said.
Dolan said Melrose set aside sufficient money to absorb its $621,980 midyear cut without job reductions. But he said next year, job reductions are likely.
Mayor Michael J. Bonfanti expects Peabody, where aid was cut $875,468, will use reserves and savings from not filling jobs to try and get by this year without layoffs. But he said next year, "depending on the severity, all bets are off."
"Give us the tools to help ourselves," said Bonfanti. "If we had had these tools awhile back, maybe we wouldn't be in such a bad position."
Gloucester Mayor Carolyn Kirk, whose city took a $484,376 midyear cut, said with the austerity plan she put in place last year, which includes a hiring freeze, "we will get by" this fiscal year. But next fiscal year "is a different story," she said, with layoffs likely.
Everett Mayor Carlo DeMaria Jr. said the city would look at using reserves and belt-tightening to absorb its $837,878 midyear cut, calling layoffs a "last option." He said the city is still evaluating the need for more cuts next year.
Despite the cuts, several municipal officials praised the governor's efforts in handling the state's budget crisis.
"I think most mayors feel that he has listened," Ambrosino said of Patrick, "that he did try his hardest to spare us, and that he was in an unenviable position of having to make more cuts than he'd hoped. We felt better the way he handled this than the past governor," he added, referring to Mitt Romney.
"Frankly, I applaud Governor Patrick," Clancy said. Noting that he was not a "Patrick guy" in the 2006 election - he backed then-attorney general Thomas Reilly - the Lynn mayor said, "He's taken the bull by the horns and is showing some leadership in all this. And that's a welcome change."
Kathy McCabe of the Globe staff contributed to this report. © Copyright 2009 Globe Newspaper Company.
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