Tax repeal would be disastrous, mayors warn

Area mayors sharply criticized an effort to repeal the state's 5.3 percent income tax during the annual State of the Region address last week at the North Shore Chamber of Commerce Economic & Public Policy Business Forum.

Passage of the ballot question in the Nov. 4 general election would result in the loss of millions of dollars in local state aid, threatening funding for schools, public safety, road repairs, and other essential services, they said.

"I urge you to not be fooled by easy rhetoric," Lynn Mayor Edward J. Clancy Jr. told the estimated 300 business leaders who attended the forum at the Sheraton Ferncroft Resort in Danvers. "Passage of Question 1 would have a devastating impact on municipal services, especially schools, police, and fire."

Peabody Mayor Michael J. Bonfanti estimated his city would face a $15 million budget cut, or about the amount it costs to run police, fire, and the public library. "You, as business leaders, need to pay attention," Bonfanti said. "That could slip in. Think before you vote."

The antitax question is sponsored by the Committee For Small Government , led by Carla Howell, a former Libertarian Party candidate for governor. If passed, the proposal would take $12 billion from state tax revenues and keep it in the pockets of taxpayers, according to the group's website, www.smallgovernmentact.org

Eliminating the income tax would prompt the Legislature to "streamline and cut the waste" from the state budget, and force it "to get rid of the failed, flawed government programs that don't work," the website states.

But mayors counter that the cut would harm communities already saddled with soaring health insurance costs, along with wages and pensions. "We share the same dilemmas as you," said Clancy. "We, as mayors, have to make decisions we deal with every day. But government is not a business. It doesn't exist to provide a profit. We provide services."

Beverly Mayor William F. Scanlon urged business leaders to vote "no" on the question.

"Please talk quietly to your family and employees," said Scanlon, who has been in office for 12 years. "Doing away [with the income tax] would not be the answer" to curtail state spending.

Urban Elements yesterday was due to celebrate the grand opening of its new home decor shop on Essex Street in Salem. The business, which imports furnishings from India and other distant lands, relocated from Lynn, where it opened last December on Oxford Street.

Co-owners Kim Tenenbaum and Yadira Ramos haven't entirely left Lynn, however. They've turned their old space into the Urban Elements Wellness Center, offering yoga classes, and starting on Tuesday, Zumba, the hot Latin dance/fitness regime.

"We shifted our plan," Tenenbaum said. "We were running a store and a yoga studio at once in the Lynn location. I had to move the merchandise every Saturday [night] for classes the next morning. I ran the risk of breaking merchandise every time."

Urban Elements has an eclectic mix of products, from stone Buddha statues, to vases cut from mango trees, to fluffy pillows. In Lynn, where a condo boom has gone bust, the store didn't draw enough customers, Tenenbaum said.

"People liked our store, but we just needed more foot traffic," Tenenbaum said. "But there was demand for yoga, so it just made sense for us to move the store and keep the yoga classes in Lynn. We hope to see it [the wellness center] flourish into something fun."

In Salem, the shop appears to have found its niche on the tourist trail. "We have great visibility," Tenenbaum said. "We've had customers from Britain and Canada."

Tropical Storm Hannah couldn't keep 200 bike riders from The Cycle for Life, a 25-mile trek across the North Shore to raise money for children's cancer programs at Floating Hospital for Children at Tufts Medical Center in Boston.

Devereux Beach in Marblehead was the starting point for the ride that also passed through Salem, Beverly, and Ipswich. Riders so far have raised $150,000, which will support the child life program at the hospital.

The program provides services for children being treated for cancer. Help with schoolwork, arts, crafts and games, and field trips are offered.

Crosby's Markets of Salem and WXRV-FM (92.5) in Haverhill were corporate sponsors. Woodman's of Essex and Seaside Cycles of Manchester-by-the-Sea were among the businesses donating products and services. Donations still can be mad online at www.cycleforlife.com.

Kathy McCabe can be reached at kmccabe@globe.com.