THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

On local aid front, relief and caution

By John Laidler
Globe Correspondent / November 5, 2009

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Area municipal leaders are breathing a sigh of relief after Governor Deval Patrick spared cities and towns from the brunt of the spending cuts he announced last week.

But with no end to the state’s bleak revenue picture in sight, some local officials warn that the good news on the local aid front may be only fleeting.

“It’s always good news if you don’t make the cut the first time around,’’ said Malden Mayor Richard C. Howard. But, he cautioned that “it could be kind of déjà vu,’’ recalling that local aid was protected during a first round of state reductions in fiscal 2009, only to be cut later.

The $352 million in cuts outlined by Patrick is part of an overall plan to close a $600 million deficit stemming from sagging revenues. The governor made $277 million of the reductions using existing authority, and is seeking legislative approval for the remaining $75 million in cuts.

Absent from the cut list were reductions to the two primary local aid accounts: one that provides aid to schools and the other to general government.

“Obviously we are pleased that he made a concerted effort to hold us harmless, which is excellent,’’ Newburyport Mayor John Moak said of Patrick.

But like Howard, he is concerned that cities and towns are not out of the water.

“We are breathing a little better momentarily,’’ he said.

Local officials also note that while the key aid accounts were left untouched, cities and towns will experience some loss of state dollars.

Patrick’s plan would shave $52.9 million from a number of municipal aid accounts, including regional school transportation, payments in lieu of taxes, the special education “circuit breaker,’’ charter school reimbursements, and the police educational incentive program under the Quinn Bill, according to the Massachusetts Municipal Association website.

Chelsea Manager Jay Ash said he was “most appreciative that local aid hasn’t been further reduced’’ and happy to hear that Patrick plans to push for adoption of some financial relief measures municipalities have been seeking.

But Ash said he was “a bit concerned’’ about the cuts announced in municipal aid accounts such as the Quinn Bill and regional school transportation, noting that those reductions “are going to impact already stretched budgets and are going to make it even more difficult for cities and towns to provide the services we should be providing.’’

Ash said he also anticipates that fiscal 2011 will be “just as bad if not worse’’ when it comes to state aid. He said in preparation for that, he is planning to implement spending cuts in December.

Melrose Mayor Robert J. Dolan, president of the Massachusetts Mayors Association, believes that overall, cities and towns were treated fairly under the governor’s plan.

“The governor had a list of really horrible choices - the choices weren’t about what he was going to save but what he was going to hurt the least,’’ Dolan said, observing that in making those choices, “I’m glad that he looked at our services as one of the core values he was able to maintain.’’

He also praised the governor for the “unprecedented access’’ to his office that he has provided municipal leaders, including in the development of the recent spending cut plan.

But Dolan agreed that the coast is far from clear for municipalities when it comes to state funding.

“I think local citizens and as importantly, municipal employees need to understand that this is a very temporary state of stability,’’ he said, “that the reductions we’ve seen in the last year pale compared to what is going to be seen next year. There is no avoiding that. And it’s going to take a herculean effort by citizens, employees, labor unions, and management to work together to salvage what we have today next year.’’

Amesbury Mayor Thatcher W. Kezer III said he appreciates the challenge Patrick faces.

“The governor, much like us mayors, has to deal with the reality of the numbers,’’ he said. “All the various revenue sources are failing and it is the chief elected official’s responsibility to make the hard but necessary decisions to cut spending.

Kezer said that avoiding major local aid reductions now is especially helpful to communities because large-scale cuts would have complicated the task of setting tax rates next month.

“What this does is it gives us more time for anticipating’’ the state aid reductions that could come later this fiscal year, he said.

As one way to prepare for those cuts, Kezer said he is talking to Amesbury’s unions about potential changes to the city’s health plan that could generate savings.

Andrew Maylor, the Swampscott town administrator, said the loss in state funds to the town under the governor’s plan is not as bad as it could have been.

“We certainly would identify the reductions as something we feel we can manage through,’’ Maylor said. However, he added, “I’m still concerned we are not done [with cuts for fiscal 2010] and I remain remarkably concerned about fiscal year 2011.’’

Peabody Mayor Michael J. Bonfanti is relieved that cities and towns escaped more serious cuts. “But I’m not joyful about it,’’ said Bonfanti, noting the potential for cuts down the line and the impact the cuts will have on many who rely on state services.

“When we cut social programs, we are hurting somebody,’’ he said.