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Budget Numbers Bad News for Cities, Towns

By Tammy DanielsiBerkshires Staff
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NORTH ADAMS, Mass. — Cities and towns across the state will have to dig even deeper into their budgets to offset the loss of hundreds of millions of local aid over the next year.

Gov. Deval Patrick released figures on Wednesday to close a $1.1 billion budget gap for 2009 that includes $128 million in local aid cuts and his $28 billion fiscal 2010 budget, which includes $375 million in cuts to local aid.

The governor is hoping to alleviate some of that pain by raising rooms and restaurant taxes by 1 percent each to fund local aid. His office estimates that would reduce the cuts by $150 million next year. Both his budget and midyear cuts included anticipated federal economic stimulus funding that has not yet been passed.

"There were no surprises here," said Mayor John Barrett III, who had predicted the city could lose more than $1.5 million in state funding at a recent City Council meeting. Patrick had announced at the annual Massachusetts Municipal Association on Friday that local aid would be cut 9.74 percent, or a total of $128 million, to close the current budget hole.

The city will take a $538,000 hit now (it pre-emptively sliced $300,000 last fall) and a $1.6 million loss next year — based on the governor's rooms and meals tax proposal being accepted.

Barrett described its passage as a "done deal." Williamstown Town Manager Peter Fohlin, who is seeing his community cut $115,793 now, is less sanguine about the Legislature's willingness to raise taxes.

Fohlin referred to the tax revenue as "mystery money" at Monday's Selectmen's meeting and in an e-mail on Wednesday. "The grave concern is that the Legislature may not approve the increases in meals and lodgings taxes, just as the sale of gaming licenses was denied by the Legislature last year," he wrote.

His concern is that instead, the Legislature will OK the twin proposal to allow cities and towns to also raise revenue through a local 1 percent tax on rooms and meals. Patrick had tried to get the provision in his Municipal Partnership Act two years ago without luck. The state restaurant association has vowed to fight the increase.

The Legislatures could "toss the burden to local elected officials and town meetings to impose the tax on their hometown businesses," wrote Fohlin, setting competition between neighboring communities. Without the estimated state meals/rooms tax revenue, the town will lose more than $310,000 in local aid out of next year's budget. Worse, neither plan could pass, deepening the cuts even further.

Budget Links
To  make it easier on our readers, we have uploaded some of the state reports to our Scribd account, which does not require Word applications for viewing.

The spreadsheet detailing local aid cuts (cherry sheets) for fiscal 2009 can be found here.


Estimates of fiscal 2010 state aid for Northern Berkshire and Pittsfield can be found here. (Filed by "Name2010.")


State links to Gov. Patrick's recovery plan and 2010 budget.

State list of local aid cuts for 2010.

Notice of 2009 cuts and link to Excel spreadsheet.(Warning, pdf file.)
Pittsfield is set to lose $1 million this year and more than $2 million next. Clarksburg, which just had to raise its tax rate to cover a $30,000 hole in its sewer enterprise fund, will be cut more than $40,000 this year and $130,000 next year.

To fend off this second billion-dollar gap, Patrick is planning to cut $63 million in state government spending along with the $128 million in local aid. He plans to withdraw $327 million from the state rainy day fund and is anticipating $533 million in federal bailout money.

To help fund next year's $28 billion budget, he's also asking to eliminate a sales tax exemption on alcohol, candy and sweetened beverages to raise $25 million and expand the bottle bill to recover $20 million from bottled waters, juice, coffee-flavored and sports drinks. Consolidations and reforms could raises tens of millions more.
 
"The national recession is inflicting serious pain across Massachusetts, from household budgets to the state's balance sheets, and like many residents throughout the commonwealth, we have to make do with less," said Patrick. "At the same time, we also have opportunities. The Economic Recovery Plan leverages reforms and responsible budgeting that could help alleviate the mounting pressure on our communities now and in the future."

Chapter 70 education funds to communities and regional school districts will be funded at this year's level.

Even so, Barrett anticipates moving forward with the closure of Conte Middle School and says layoffs will occur within the School Department. There aren't too many more places to cut, he said.

He's also disappointed that the governor has failed again to tackle charter school funding, which has burdened local budgets. The city is set to lose $400,000 in state help next year toward the Berkshire Arts and Technology Charter Public School.

The city's been struggling with state aid losses for six years, said the mayor, but "I never thought that it would get this bad."

He plans to meet with neighborhood groups over the coming months for input on city priorities and options.

"This is a time in which the community needs to work together," said the mayor. "It's going to mean some sacrifices."


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McCann and Taconic Awarded CTI Grants

Staff Reports
NORTH ADAMS, Mass. — The Healey-Driscoll Administration announced $525,482 in Career Technical Initiative (CTI) implementation grants awarded to two organizations in the Berkshires to train 80 individuals for careers in high-demand occupations within the trades, construction, and manufacturing sectors in the region. 
 
In North Adams, McCann Technical School was awarded $344,871 to provide training to 60 participants for Automotive Technician, Advanced Manufacturing, and Welding positions. They will partner with T&M Auto Sales Inc., Berkshire Bridge & Iron Co. Inc., Haddad GMC, Haddad Subaru, Bedard Brothers Auto Sales Inc., Lenco Armored Vehicles, TOG Manufacturing, Sinicon Plastics, Adams Plumbing & Heating Inc., and Gills Point S Tire.
 
"We are excited to be working with our MassHire team to continue to address our workforce needs and build talent pipelines and career pathways in Advanced Manufacturing, Welding and Automotive Technician," McCann Superintendent James Brosnan said. "This CTI award will provide hands-on training and support as we continue to expand our skilled talent pool for employers in the Berkshires."
 
In Pittsfield Taconic High School was awarded $180,610 to provide training to 20 participants for Metal Fabrication and Auto Technology positions. They will partner with O.W. Landergren Inc., Lenco Industries Inc., Bedard Brothers, Haddad's Auto Group, and RW's Auto Inc.
 
"Pittsfield Public Schools is incredibly grateful to the Healey-Driscoll Administration and Commonwealth Corporation for the CTI award to Taconic High School. This grant will have a significant and lasting impact on our community by providing skilled technicians to address critical shortages in Berkshire County," said Superintendent Joseph Curtis. "We are excited to partner with Lenco Industries, Haddads, Bedards, RW Auto, O.W. Landergren, Northeast Fabricators, and the MassHire Berkshire Career Center. These partnerships will serve as a catalyst for positive change, ensuring that our trainees are well-prepared for the challenges and opportunities of the 21st-century workforce, while simultaneously strengthening our local economy."
 
The CTI grant program, a state-funded workforce initiative, partners with career and technical education schools to provide adult learners, especially unemployed and underemployed individuals from underserved populations and underrepresented groups, with career training and technical skills to meet the needs of Massachusetts employers. The program transforms career and technical education schools across the state to become "Career Technical Institutes" that run after dark programs in the construction/trades, manufacturing, and skilled trades career pathways. 
 
"Addressing our workforce needs and building talent pipelines and career pathways in construction, trades and manufacturing sectors is a priority for this administration," said Governor Maura Healey. "CTI offers hands-on training that will support our jobseekers, workers and employers. We're proud to expand the CTI awards to these two schools in the Berkshires to strengthen our workforce and grow our economy throughout the state."  
 
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