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Budget misery grows for cities and towns

Latest state shortfall could hit local aid, again

By David Abel
Globe Staff / October 17, 2009

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The pain has already been more than they thought they could bear.

So far this year, Lawrence has laid off 18 police officers. Class sizes in New Bedford ballooned to as many as 34 students. Home health care services had to be cut for elderly residents in Melrose.

The state’s plummeting budget this fiscal year has already resulted in a loss of $724 million in local aid to cities and towns, a 12 percent drop from last fiscal year of what amounts to the lifeblood of many municipalities.

Now, local budgets are likely to take another hit.

Governor Deval Patrick announced this week that the state has experienced another big budget shortfall, and he wants the Legislature to grant him authority to make cuts beyond the executive branch agencies he oversees.

The estimated $600 million loss in state revenue is likely to mean less money for local aid, which could result in fewer teachers, firefighters, and police officers for communities.

“The cities and towns have really been hammered,’’ said Geoffrey Beckwith, executive director of the Massachusetts Municipal Association. “Local aid now already pays for a record share of local budgets. Losing more aid means fewer workers and services. We’re talking about the services that are vital to our economic prosperity.’’

Administration officials said yesterday that they are considering all their options and have not ruled out cutting local aid.

“No final decisions have been made on the cuts that will be necessary to close the budget gap,’’ said Kyle Sullivan, a spokesman for the governor. “Those decisions are expected by the end of the month.’’

Legislative leaders said that municipalities should expect more pain, but that it is uncertain whether they will grant the governor authority to cut local aid, one of the primary areas lawmakers are expected to deliver for their districts.

“We are watching the stark budget realities,’’ House Speaker Robert A. DeLeo said in a statement. “At this time, no request has been made for local aid cuts. But given the circumstances, local officials should be prepared.’’

Senate President Therese Murray said she was waiting to see a plan from the governor, but she warned that “painful decisions lie ahead.’’

“There are faces and families on the other side of these cuts,’’ she said in a statement. “No one wants to do this, but we are bound by the constitution to balance the budget, and we have to do the best we can.’’

Mayor Robert J. Dolan of Melrose, who serves as president of the Massachusetts Mayors’ Association, urged lawmakers to cushion the blow by allowing cities and towns more authority over managing their health insurance plans and cutting police perks such as the Quinn Bill, , which boosts salaries of police officers with college degrees.

His city of 28,000 people has already lost $2.6 million in state aid, forcing him to make a raft of cuts and consider laying off up to three police officers.

“We feel the Legislature is not providing any tools to offset any budget cuts, that they’re not giving us any tools to survive,’’ Dolan said. “From public safety to social services to public education, there have been cuts across the board. If we lose more state aid, without question, our streets are going to be less safe, the progress of education reform is going to be set back, and the social safety net is going to be further eliminated.’’

New Bedford’s mayor, Scott Lang, whose city has lost $11 million in state aid this year, had to let go 157 employees. He initially laid off 31 police officers and 36 firefighters, but the city has been able to restore most of those jobs with federal and state grants.

Like other cities, New Bedford has instituted mandatory furloughs, with about 500 nonessential employees required to leave their jobs by noon on Fridays.

“We’re at the point where it’s going to be extremely difficult to cut elsewhere,’’ he said. “We’re well beyond cutting superfluous expenditures. We’re at the point where what we’re doing is very basic.’’

Not all municipalities are experiencing such deep cuts.

Boston has already lost $90 million in local aid this fiscal year, a 26 percent cut from the last one. But the city has avoided widespread cuts to jobs and services by hiking meal and hotel taxes. On Oct. 1, the tax for a restaurant meal jumped from 5 to 7 percent, and the tax at hotels rose from 12.45 to 14.45 percent.

But cuts are not out of the realm of possibility if the city experiences another reduction in state aid.

“Everything always has to be on the table,’’ said Dot Joyce, a spokeswoman for Mayor Thomas M. Menino. “We will continue to evaluate everything, every service and every position, as we always do, to ensure that we have used all of our resources as efficiently as possible, before any cuts are made.’’

In Somerville, which lost 27 percent of its state aid this fiscal year, city officials have increased the price of parking at meters, from 50 cents an hour to $1. Unions have had to forgo annual raises, and retirees have seen reduced contributions to their health insurance.

But Mayor Joseph A. Curtatone said taking more than the $9 million hit the city has already experienced means more cuts will be considered.

“We’re in a more stable position than other communities, but the question is how deep and drastic will the next cuts be and what will the Commonwealth do to mitigate the pain?’’ he said. “It’s a harsh reality we’re experiencing.’’

Less well-off communities are wondering how much deeper they can cut.

Medford has already eliminated 48 jobs, including school positions. Revere has fired nine police officers and 10 City Hall workers, and it has required those remaining to take a 10 percent pay cut. Gloucester has cut overtime for its Fire Department, closed fire stations, and prodded 21 city employees to retire early.

In Lawrence, Police Chief John Romero has been struggling to ensure he has enough officers to patrol the streets, with 18 fewer officers than last year. His department is coping with a $3 million cut and an overtime budget that is half of what it was last year.

“Any future cuts are just going to be disastrous to us,’’ he said. “We’re essentially up against the wall this time.’’

Matt Viser of the Globe staff and Globe correspondent Abbie Ruzicka contributed to this report. David Abel can be reached at dabel@globe.com.