Bracing for cuts, layoffs

Communities hit by state aid losses

Cities and towns braced for layoffs and service reductions after Governor Deval Patrick late last month announced the most Draconian local aid cuts in years.

While many municipal officials had crafted their budgets to accommodate some loss in state money, many said they had not anticipated how much the aid would drop this year.

"There's no question this is very grim," said Brian F. Sullivan, town manager in Arlington, which will see a $920,000 cut this fiscal year. "It's going to be probably the worst that we've seen. We've had downturns before, but we've never really recovered. We're operating at the edge right now."

With the national and regional economy teetering, Patrick said he was forced to slash $128 million in local aid for this fiscal year, ending June 30. That means about a 9.74 percent cut in the current budget, with only about five months left. Municipal officials now scrambling to find ways to carve out reductions lamented that this round of cuts is expected to be followed by a second, with state aid down by an estimated total of $375 million by the end of next fiscal year.

In a survey of 13 area suburbs, although all municipal officials said their communities will face hardship, not a single one said they were anticipating a tax levy override to make up the budget gap.

"This is not the right time," said Carl F. Valente, town manager in Lexington, due for a $186,000 cut. "People are either losing their jobs or losing benefits or otherwise feeling the financial strain from what's going on in the economy. We would not want to ask the residents to pay higher taxes."

The staggering two-year plunge in aid to cities like Lowell, at $3 million this fiscal year and an estimated $8 million to $9 million next fiscal year, cannot be remedied by simply snipping programs at the edges, said Lowell City Manager Bernard F. Lynch. Lynch said the city already has a hiring freeze in place and does not fill in for employees on sick leave. All departments are also required to have him approve new supplies, and overtime pay for police, fire, and public works employees is limited. Still, the cost savings leave the city $800,000 shy of this year's goal for reductions, he said.

And with triple the trims anticipated by the end of fiscal year 2010, Lynch said it is likely the city will have to lay off employees.

"We're trying to minimize those, particularly for this year, but there's almost an inevitability for next year," he said.

The loss of aid comes at a particularly bad time for many communities, after a series of state aid cuts over the past five years that have diminished staff. For example, Lowell has lost 44 employees, including eight police and nine firefighter positions, since 2003, according to Lynch.

The Medford School Department lost 48 jobs last year, said Mayor Michael J. McGlynn.

In addition to an ongoing hiring freeze, McGlynn said Medford - slated to lose $1.4 million this fiscal year and an estimated $4.5 million the following year - is planning to offer employees an early retirement incentive package. That saves the city the cost of unemployment for laid-off employees, he said.

Officials are also negotiating new contracts with eight of Medford's 15 unions that could trim some labor costs. McGlynn said already four of the unions have agreed to some givebacks.

"It's very encouraging," he said.

McGlynn said there is at least one other bright spot: The city was preparing last week to put into commission a new wind turbine to cut energy costs at the McGlynn School, by an expected 10 to 15 percent.

Chelmsford Town Manager Paul E. Cohen said last week he would announce the first round of layoffs soon to help correct this fiscal year's expected budget shortfall of $2.25 million, aggravated by a loss of about $616,000 in state aid. Cohen said layoffs eventually would be "across the board - police officers, firefighters, public works, library, schools."

Belmont Town Administrator Thomas G. Younger called this fiscal year's cuts "a dress rehearsal for next year," as town officials find themselves unable to afford to fill two vacant firefighter positions.

As snow drifted down over the area last week, causing additional headaches for communities anticipating cleanup costs, municipal officials said they hope state lawmakers will approve Patrick's initiatives to help save money and bring in new revenue.

Patrick has proposed giving cities and towns more latitude to negotiate new employee health insurance agreements.

Now, 70 percent of union members must approve changes. Patrick has recommended lowering the threshold to 50 percent. Cohen, in Chelmsford, was among those who said they believe the approval percentage should be even lower.

Another Patrick recommendation would allow communities to tax restaurant meals, hotel and motel stays, and utility poles and switching stations.

Municipal officials said any extra money would be appreciated, as the recession takes a bite out of their revenue. Receipts are down, for example, because of a loss in motor vehicle excise taxes, as residents forgo buying a new car or truck.

Several municipal officials said they are already experiencing cuts in service.

The Arlington Police Department is down from four to two detectives, Sullivan said.

The Lowell police force is down to 235 employees from a high of 260, Lynch said. While the city has avoided any calamities so far, that could be just luck, according to Lynch. "I think it's like rolling the dice," he said.

In these troubling times, Robert A. Mercier, town administrator in Burlington, set for a state cut of about $318,000 this fiscal year, said he hopes municipal officials crafting downsized budgets and setting tax rates remember the residents.

"They're the ones who pay the bills," he said. "There's a lot of stress and angst out there amongst the population."

Connie Paige can be reached at connie_paige@yahoo.com.