Earlier this month, a Gubernatorial Task Force released a report on how the Commonwealth should spend Federal Stimulus monies. CLICK HERE to go to the Task Force's website.
CLICK HERE to read the Task Force's report. The Report looks at (primarily capital) spending in these areas:
a) Energy
b) Education Facilities
c) Transportation
d) Information Technology (including electronic medical records)
e) Private Development (including broadband expansion)
f) State Facilities and Courts
g) Municipal Facilities
You may have heard about communities submitting lists of 'shovel-ready' projects to the Commonwealth. You can read a list of projects that the Task Force and its Working Groups deemed 'shovel-ready' by CLICKING HERE. As I read the report, listed projects are prime candidates for receiving funds made available by the federal Recovery Act. That does NOT mean that Massachusetts will in fact receive monies to cover the $9,589,367,163 worth of projects listed.
Where does Amesbury fit it in this? A word search of this 78 page list shows that one Amesbury project made it on to this list: $2,439,045 for the planned Transportation Center in the Lower Millyard. This project is in fact an important one to Amesbury and one of the 2 keys to the redevelopment of the Lower Millyard (the 2nd is the relocation of the Department of Public Works building).
The Task Force actually received many more projects for review from municipalities around Massachusetts. CLICK HERE to read a list of received projects that did NOT make it on to the list. Amesbury actually submitted 33 projects to the Task Force for review, including monies for road, drain and sidewalk upgrades, and other projects. Though I had not seen news of it in the local press, I was pleased to see that Amesbury had submitted projects worth tens of millions for review (we have extensive infrastructure needs, to say the least).
The projects listed in this report are all capital projects, meaning infrastructure investments. I believe that the Recovery Act may also have monies for other purposes, such as public safety and education, so hopefully we will have opportunities for other monies as the come down in coming months. The Transportation Center was already funded through the Commonwealth's Transportation bond bill, so it looks like Amesbury doesn't stand to pick up new projects; this looks more like the Commonwealth may use Stimulus $$ to replace Commonwealth $$ for this particular project. Stay tuned!!
Sunday, February 22, 2009
Monday, February 16, 2009
2/09 Staff Reduction Plan
Mayor Kezer announced final lay-offs on Friday 2/13.
CLICK HERE to read the Mayor's Press Release.
CLICK HERE to read the list of eliminated positions.
These cuts are painful and involve the lay-off of dedicated public servants. These reductions are in response to: mid-year FY09 cut to local aid last month, low revenues from excise tax and investment/interest income and severe reductions in local aid for FY10. We know that Amesbury can expect at least a 30% reduction in local aid for Fiscal Year 2010 and these staff reductions should give us a good lead on that (the fiscal year starts July 1; see previous post). Better to re-shape municipal services and make these reductions now then handle them piece-meal. Amesbury is caught in the same fiscal tsunami facing states and municipalities across the country.
Looking ahead as we start FY10 budget preparation, I see continued tightening of spending and the reduction of municipal services. I don't see any improvement from the Commonwealth for quite a long while, meaning the pressure on local revenue (e.g. property and excise taxes) will be all the greater. Amesbury's households, however, are also under great pressure - layoffs, adjustable mortgages kicking in, reductions in home value and retirement savings - so there is no room for increasing revenue locally, either. It all adds up to hard choices about what services we can eliminate and still keep a basic level of services. We will face those choices in developing next year's budget.
ADDT'L COMMENT, 2/22/09: I've had a number of questions about the layoffs and the current 'state' of Amesbury. As I understand it, these lay offs were NOT made simply to balance the remainder of the FY09 budget (that goes through the end of June, 2009).
As I posted above, Amesbury is facing a HUGE reduction in local aid from the Commonwealth, starting in July. From the Mayor's comments at the last Municipal Council meeting, the press release announcing the cuts and conversations with the Mayor and his Chief of Staff Kendra Amaral, it is my understanding that these lay offs are intended to absorb the FY10 cut in local aid in advance. Running 'back of the envelope' numbers about what the 19 positions might save, estimating $50K annually in salary + long-term benefits over the remaining 4 months of the year plus ALL of next fiscal year, I put the savings at about $1.2 million. Given the $250K local aid cut from this year's budget + expected $700K cut in local aid from next year's budget (July 1), then it looks like these cuts are intended to and will largely close the budget shortfall created by the deep local aid cuts.
I think taking action NOW in a decisive manner to get ahead of coming reductions in revenue is very prudent and I support the Mayor with taking quick action. I've had folks ask why they haven't seen other local communities announcing lay offs like this. All I can say is that EVERY community is getting the same cuts to local aid and all I can say is that the longer they wait to make cuts, the deeper their cuts will have to be.
As a Municipal Councilor, I have additional questions about the cuts and look forward to hearing more about their rationale. Particularly, the elimination of the public health staff and the elimination of the Permit Coordinator position concern me. There are no good choices to make at this juncture---every cut will mean a reduction in basic services, no way around it. Conversations about what are core services to focus on as our revenues tighten up will be important, especially as we develop the FY10 budget over the next months. I will be asking for more information about these cuts and our overall situation; please me know what your questions and concerns are about these developments.
CLICK HERE to read the Mayor's Press Release.
CLICK HERE to read the list of eliminated positions.
These cuts are painful and involve the lay-off of dedicated public servants. These reductions are in response to: mid-year FY09 cut to local aid last month, low revenues from excise tax and investment/interest income and severe reductions in local aid for FY10. We know that Amesbury can expect at least a 30% reduction in local aid for Fiscal Year 2010 and these staff reductions should give us a good lead on that (the fiscal year starts July 1; see previous post). Better to re-shape municipal services and make these reductions now then handle them piece-meal. Amesbury is caught in the same fiscal tsunami facing states and municipalities across the country.
Looking ahead as we start FY10 budget preparation, I see continued tightening of spending and the reduction of municipal services. I don't see any improvement from the Commonwealth for quite a long while, meaning the pressure on local revenue (e.g. property and excise taxes) will be all the greater. Amesbury's households, however, are also under great pressure - layoffs, adjustable mortgages kicking in, reductions in home value and retirement savings - so there is no room for increasing revenue locally, either. It all adds up to hard choices about what services we can eliminate and still keep a basic level of services. We will face those choices in developing next year's budget.
ADDT'L COMMENT, 2/22/09: I've had a number of questions about the layoffs and the current 'state' of Amesbury. As I understand it, these lay offs were NOT made simply to balance the remainder of the FY09 budget (that goes through the end of June, 2009).
As I posted above, Amesbury is facing a HUGE reduction in local aid from the Commonwealth, starting in July. From the Mayor's comments at the last Municipal Council meeting, the press release announcing the cuts and conversations with the Mayor and his Chief of Staff Kendra Amaral, it is my understanding that these lay offs are intended to absorb the FY10 cut in local aid in advance. Running 'back of the envelope' numbers about what the 19 positions might save, estimating $50K annually in salary + long-term benefits over the remaining 4 months of the year plus ALL of next fiscal year, I put the savings at about $1.2 million. Given the $250K local aid cut from this year's budget + expected $700K cut in local aid from next year's budget (July 1), then it looks like these cuts are intended to and will largely close the budget shortfall created by the deep local aid cuts.
I think taking action NOW in a decisive manner to get ahead of coming reductions in revenue is very prudent and I support the Mayor with taking quick action. I've had folks ask why they haven't seen other local communities announcing lay offs like this. All I can say is that EVERY community is getting the same cuts to local aid and all I can say is that the longer they wait to make cuts, the deeper their cuts will have to be.
As a Municipal Councilor, I have additional questions about the cuts and look forward to hearing more about their rationale. Particularly, the elimination of the public health staff and the elimination of the Permit Coordinator position concern me. There are no good choices to make at this juncture---every cut will mean a reduction in basic services, no way around it. Conversations about what are core services to focus on as our revenues tighten up will be important, especially as we develop the FY10 budget over the next months. I will be asking for more information about these cuts and our overall situation; please me know what your questions and concerns are about these developments.
Wednesday, February 11, 2009
Mayor Kezer's Budget Memo to Council - 2/10/09
CLICK HERE to read a copy of the memo that the Mayor presented to the Council last night regarding planned cuts to the FY09 and FY10 operating budgets. My own comments to follow soon.
Gov. Patrick's FY10 Budget Cuts $698K from Amesbury's Local Aid
We are heading into budget season on the State and Local level. The Governor's proposed 'House 1' budget includes a substantial cut to local aid for all MA municipalities. Amesbury's share of this is $691,232. For perspective, our FY09 local aid share in Amesbury was only $2.4 million, so this represents a 29% decrease in local aid. It is hard to over-emphasize the negative effect that this will have on Amesbury's operations. CLICK HERE to view the Governor's memo to Amesbury regarding our proposed FY10 local aid amounts.
This comes on top of the recent $250K+ mid-year FY09 cut to local aid that we received in January. And on top of substantial drops in excise tax receipts, building permits and interest income (from Town investments and savings accounts). And on top of a very expensive winter storm season. And on top of rapidly increasing veteran's benefits (paid out by the Town).
Amesbury is caught in the same financial storm that virtually every community and State in the country are facing. There is absolutely no way that Amesbury will be able to avoid making the same kinds of cuts that governments and businesses everywhere are making. When personnel represents that vast majority of our operating costs, then we have no option but to cut positions. This situation will be long-lasting and extend beyond the recent announced cuts to local aid, I have no doubt. Mayor Kezer will be announcing lay-offs and other budget reductions soon that will not be temporary changes but rather, long-lasting.
In his remarks to the Municipal Council at last night's meeting (2/10/09), he described an approach that will not merely take a % decrease amount and spread it evenly across departments but rather is re-examining all services provided by the Town and will focus on preserving core services and reducing or eliminating other services. While arguably all of the current services that the Town provides could be considered 'basic' and essential, some--such as education and water treatment--are 'more essential' than others, say, composting leaves. We will all have to reckon with calculation. I look forward to hearing specifics from the Mayor soon for the balance of FY09 cuts (through June) and how those will extend through next year (FY10).
This comes on top of the recent $250K+ mid-year FY09 cut to local aid that we received in January. And on top of substantial drops in excise tax receipts, building permits and interest income (from Town investments and savings accounts). And on top of a very expensive winter storm season. And on top of rapidly increasing veteran's benefits (paid out by the Town).
Amesbury is caught in the same financial storm that virtually every community and State in the country are facing. There is absolutely no way that Amesbury will be able to avoid making the same kinds of cuts that governments and businesses everywhere are making. When personnel represents that vast majority of our operating costs, then we have no option but to cut positions. This situation will be long-lasting and extend beyond the recent announced cuts to local aid, I have no doubt. Mayor Kezer will be announcing lay-offs and other budget reductions soon that will not be temporary changes but rather, long-lasting.
In his remarks to the Municipal Council at last night's meeting (2/10/09), he described an approach that will not merely take a % decrease amount and spread it evenly across departments but rather is re-examining all services provided by the Town and will focus on preserving core services and reducing or eliminating other services. While arguably all of the current services that the Town provides could be considered 'basic' and essential, some--such as education and water treatment--are 'more essential' than others, say, composting leaves. We will all have to reckon with calculation. I look forward to hearing specifics from the Mayor soon for the balance of FY09 cuts (through June) and how those will extend through next year (FY10).
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