Town officials prepare for worst after warnings from Romney
Published on January 15th, 2003
STONEHAM, MA - The crashing thud you heard last weekend in cities and towns across the Common-wealth of Massachusetts was the sound of financial expectations in a kamikaze tailspin. In a Massachusetts Municipal Association conference attended by all five Stoneham Selectmen last weekend, newly elected Governer Mitt Romney sent out a warning shot over the bow.
Romney is attempting to wrangle special powers from Beacon Hill in order to make cuts from the FY03 budget. In a speech to gathered Selectmen, Mayors and City Councillors, Romney warned that cities and towns will have to share in the state’s fiscal pain.
Romney outlined a plan where as much as 5-10 percent could be lopped off the last six months of local aid to towns like Stoneham. According to Town Administrator Dave Berry, Stoneham receives approximately $10 million in local aid from the state, and, with six months left in the fiscal year, a midway cut could mean as much as a $500,000-$700,000 rug pulled out from under the Town of Stoneham’s feet.
A number of town officials took varying views of skepticism, optimism, aggravation and plain old caution in reaction to Romney’s words of warning.
“I think it’s pretty unfair for this to happy midway through the year,” said Chairman of the Stoneham Board of Selectmen Anthony Kennedy. “I don’t think we can absorb a $500,000 hit midway through the year, and most cities and towns, including Stoneham, are saying that it may result in layoffs on both the school and municipal side.”
The layoff option is even more difficult given that the town is halfway through the budget, and can’t just lop off a couple of $50,000 positions, for examle. Since the town has already paid half the aforementioned salary, there would only be a $25,000 savings for each position cut.
Kennedy is attempting to network his way onto a newly created municipal committee that will meet with Lt. Gov. Kerry Healey to aid in the budget process.
“I’m trying to utilize some of my contacts to get on there, and help get Stoneham the best possible deal,” said Kennedy, who also noted it would put him in a position to preview news coming from Romney’s office.
According to Town Administrator Dave Berry, Romney sent out a letter assuring that he wishes to work with the towns, and setting up a dialogue during the potentially painful crisis.
Selectmen Cosmo Ciccarello voiced hope that Romney’s warning was simply just a worst case scenario.
“I’m certainly hoping that this is just a warning, and the final numbers will be a lot better,” said Ciccarello. “They’re talking about a 10 percent cut which would be devastating. There are people’s livelihoods at stake.”
Ciccarello also alluded to $1.2 million in the town’s stabilization fund that could be partially, or wholly used, this year. The only problem is that the word for next year is also fiscally troubled.
“Do we use it this year, or hold onto it for next year...I don’t know the answer” said Ciccarello. “I’m hoping for the best, and that it won’t be as bad as they’re saying.”
Town officials would not speculate on where the cuts would be made, but, according to Kennedy, most of the unions have a last in-first out seniority policy.
The news came at the Massachusetts Municipal Association Conference at the Hynes Convention Center last weekend. Kennedy, Ciccarello, as well as Bob Sweeney, Mary Pecoraro and Charlie Smith all attended the conference, and sat in on seminars like “Cherry Picking: Looking for local aid in all the right places”, “The art of negotiations” and “Maximizing local revenues in tight times.”
“It gives us a chance to network with the officials from our surrounding towns, and also gives us some fresh ideas on traditional problems,” said Kennedy.
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