Tax hike vote off; more cuts studied

The push for a $3.5 million tax increase lost steam Tuesday, when selectmen voted to cancel a townwide vote on the question and send it to the Budget Committee for further consideration.

Facing widespread opposition to higher taxes, some selectmen pored over ledger sheets in advance of the Budget Committee meeting this Tuesday, when members will recommend cuts to programs, services, and the town's payroll. The goal is to bring a balanced budget to Town Meeting, which begins May 7.

The move to rescind the May 19 election was initiated by Selectman John Mackey, who said the tax increase appeared to have no support from residents and was creating an atmosphere of skepticism.

"People think we're going to find some magical money this time and this matter isn't going to come to pass," he said. "We're not going to find that kind of money . . . and it's time to make the cuts."

The town is heading into a fiscal storm. Town Manager David Cressman is predicting a $3.5 million deficit for the fiscal year that begins July 1, an $8.5 million gap the following fiscal year, and an $11.4 million hole in fiscal 2010.

The deficits stem from rising fixed costs for health insurance for town and school employees, pension assessments, utility expenses, and special education.

Mackey said the proposal to override the limitations of Proposition 2 1/2 had raised so much opposition that he became convinced it would have been "crushed overwhelmingly." Proposition 2 1/2 is a state law that limits an increase in property tax revenue to 2.5 percent annually, plus revenue from new growth.

AnneMarie Stronach, the newly elected selectwoman who, with a small group of parents, spearheaded a $1.8 million override vote last fall seeking money to hire more teachers, said she opposed the measure this year because town officials had not developed a long-range financial plan.

Mark Wood, an advocate for low-income residents and a director of the town food pantry, was against it, too.

"People are losing their homes," said Wood. "There are over 5,000 elderly people in this town, a lot of them widows and widowers, who are strapped to unbelievable proportions and they don't know which way to turn."

Parent Brenda Regan was also against a tax increase. Immediately after attending Wednesday's School Committee meeting and listening to budget discussions, she wrote her objections in an e-mail to the Globe.

"There were many questions still out there for the $3.5 million override amount," she wrote. "What was it exactly for? . . . Who was getting what?"

"I know we need more money in the budget . . . and I will support an initiative that does that . . . even an override," she continued. "But I can't blindly support an override without adequate information."

The Budget Committee, which consists of officials from town agencies, will meet at 7 p.m. Tuesday at Town Hall and discuss the merits of holding a vote.

But Mackey, who represents selectmen on the committee, said he won't support the idea, and the measure is all but dead.

At the request of the Finance Committee, Cressman is proposing that Town Hall trim $1.3 million from the fiscal 2008 budget of $77.8 million, which includes a School Department budget of $45.58 million.

That number includes health benefits, retirement costs, and debt service.

The Finance Committee is suggesting that the School Department slice $2.2 million, and the School Committee is trying to determine what cuts to make, but they are certain to include teachers, said School Committee chairman Keith Rauseo.

"There's no way we can make that much in cuts without cutting people in the classroom," he said.

Following the Finance Committee's recommendations, Cressman offered a plan in which police would lose four positions and a cruiser.

One of the town's fire substations would close in the evenings for most of the year.

The overtime budget for both the police and fire departments would be reduced.

The library would lose a full-time and part-time position. The Recreation Department would no longer offer concerts and fireworks, and one position would be eliminated.

Even the Memorial Day parade is in jeopardy.

Stronach said that the cuts will be tough, but necessary, given the large structural deficit.

"The consequences will be a huge decrease in services, and it won't be just the schools," she said. "It will be across the board. I think police, I think fire. All of those services that people depend on."

Joyce Pellino Crane can be reached at crane@globe.com.