Shortfall leads to bickering
Officials predict layoffs, closing kids' programs
With a $2.7 million budget shortfall looming, Medway officials are warning that dozens of town employees may have to be laid off and the town's Choate Park children's programs, senior center, and library may have to be closed.
A temporary tax increase has been suggested as one answer to the problem.
''It's horrendous," said Joe Dziczek, chairman of the Board of Selectmen. ''The schools, because of the size of their budget, would take the largest hit. And most of the departments of the town are losing an employee here and there."
The current town budget is $36.5 million. Town officials say they need $37.5 million to maintain services in the fiscal year that begins July 1, but it appears the town will fall short by $2.7 million.
The budget crunch has led to bickering and finger-pointing at Town Hall as officials try to figure out the cause, and whether it could have been prevented.
Town Administrator Greg Balukonis, who has taken much of the flak, said last week that Medway's problems aren't unique.
Communities throughout the state are struggling with rising costs, he said, under the constraints of the Proposition 2½ tax-limiting law.
Proposition 2½ limits increases in a town's tax levy to 2.5 percent plus allowances for new growth -- unless voters override it.
''When you can increase taxes only 2½ percent and you have pensions going up 40 percent and health insurance going up 20 percent, you are put in a very difficult situation when it comes to balancing the budget," he said.
The cost of providing health insurance for town employees was expected to rise by $650,000 next year. And town officials only recently learned that 51 additional employees signed up last summer and fall for coverage, which will push the cost even higher.
''For us to learn of these issues, this late in the fiscal year and in the budget process, is indicative that we don't have adequate control over our finances," said Jay Leader, chairman of the Finance Committee.
Balukonis acknowledged that the town officials should have been informed about the new enrollees in the fall, but said that, at the time, there was some turnover in the treasurer's department and it was missed.
Town officials say they're working hard to find savings. And they say they must balance the budget, even if it hurts.
''The superintendent and the management team are looking at the least obtrusive cuts, but there will be some pain," said Allen Himmelberger, chairman of the School Committee.
Himmelberger declined to specify what cuts would be needed if schools suffered a $1 million cut, but said it would undoubtedly mean the loss of teachers and programs. Finance Committee members said it could mean the loss of as many as 40 school jobs.
''The most difficult is that we just got through a year where we felt like we were gaining some momentum," Himmelberger said. ''Now it looks like we're going to be slipping back a bit."
The selectmen are expected to discuss tomorrow whether to postpone a budget vote to a June Special Town Meeting rather than the currently scheduled May meeting, which would give them time to study the problem. They're also expected to discuss whether to ask citizens to vote on a $500,000 temporary tax increase.
Leader said the town will look at a number of ways to address the shortfall, including tapping into the town's reserve funds.
''It's devastating."
Franco Ordoñez can be reached at fordonez@globe.com. 