In Case You Missed It...

Town Manager Mark Rees has released his recommended budget for FY09, officially opening up our annual spring budget negotiation season. The basic budget formula is: Revenues & Other Financing Sources, minus Fixed Costs, equals Amount Available for Operating Expenses. For FY09, Mr. Rees currently estimates that $53.3 million or a 2.4% increase over FY08 will be available to split between the municipal and school departments, on a roughly 2/3rds to the school, one third to the municipal side basis.

The School Committee had submitted a budget increase request of 4.8% to the Town Manager. The recommended 2.4% increase means the Superintendent will now work with his administrative team to cut an additional $800,000 from his requested budget.

So, you may ask "What happened to the override money? Are we facing losing teachers again?" As you may recall, the override was a permanent increase in property taxes. Last year, we voted that the $1.65 million be allocated in specific areas. In year two (2009) and beyond, the additional taxes become part of the general fund and are allocated according to the Town Manager’s recommended budget. At first glance, his FY09 budget keeps the restored positions in the Police Department, Senior Center, Youth Center, and Stevens Memorial Library intact. I believe the School Department will also work very hard to keep their restorations intact. Our town mantra, both in support of our municipal departments and school department, needs to be "Do No Harm"

What’s next? The Finance Committee will fine-tune the Town Manager’s projections. For example, in their meetings that I recently attended, they reviewed the initial Capital Improvement Project budget for both the new police station and the pre-k building. Yesterday, NAU tagged along on the Fincom’s field trip to the Town Hall computer department, the fire station, the old police station, and Bradstreet School, where they were trying to make first-hand assessments of the current condition of these facilities. Increasing our debt service to pay for these new projects could stress our operating funds to the point that we’ll have trouble funding critical town services in future years. The Fincom, as advocates for North Andover citizens, will balance our strong need for new infrastructure with our future budget requirements. The Fincom will craft its own recommended budget, work with the Town Manager to negotiate compromises, and then the Town Manager will submit a final budget to be voted on by the Board of Selectmen and presented to Town Meeting on May 12th. Voters at Town Meeting will decide the final allocations of town funds for FY09. Click here to read an article explaining the role of our Finance Committee, written by Doug Swatski, Chair of the Fincom.

As I attend and watch our government meetings, it is abundantly clear that we have moved light-years ahead, both in terms of accountable governing and in our shift toward a proactive attitude. But it’s also abundantly clear that no matter how well we govern, not matter how well we budget or how transparent and accountable we’ve become, it’s not enough. Many of our fixed costs are beyond our control and as we head into a recession [if we’re not already there], our sources of revenue will likely decline. We need help from the State.

BOS Chairman Xenakis recently said that "people" seeking local relief at the state level have been "conspicuously absent" in supporting House Docket #4651. If approved, this bill would release $450 million in state stabilization monies to local government. North Andover’s share would be $1.1million. NAU has been conspicuously busy - trying to decipher the pros and cons of this bill that even Chairman Xenakis fears is a politically dead battle. By the way, the money we would receive from passage of this bill would be one-time use money, best spent on capital projects [like the police station or pre-k building] or deposited in our stabilization fund. This money would - if used as intended - have limited effect on our operating funds. Click here to read two opposing opinions on this bill: pro and con.

What we really need is ongoing, sustainable support, in the form of fair funding formulas for local aid, a major overhaul in how the state funds special education, and improved local autonomy to relieve the pressure of state constraints on issues such as our negotiation of health benefits with our thirteen unions.

Contrary to Chairman Xenakis' opinion, we do not share his belief that "tough times seemed to have passed at the State level...". The Governor has $20 BILLION in new initiatives on the table, he’s balancing his proposed budget with potentially non-existent casino monies, the sustainability of the state health insurance initiative is now in question, he’s moving to close corporate tax loopholes but at the same time freezing unemployment taxes, lottery proceeds are diminishing, raising taxes is not going to be a popular option to close budget gaps when we’re in a recession, and the Globe is reporting that his proposed budget faces a $1.3 BILLION deficit. Unless our state legislators are willing to implement expense reform measures, the state is going to have a hard time paying their own bills, let alone meeting current or increased municipal aid levels.

North Andover United heads to the State House this week to sit down and discuss our concerns with our legislators. We’ll be asking for honest answers to honest questions. We’re interested in supporting initiatives and bills that offer long-term positive relief.

Keep us in mind, check www.northandover.org often, and encourage your friends to register too. Click here to view an important video presentation from the Massachusetts Municipal Association, supporting a phased-in approach to a 40/60 state Revenue Sharing Plan. Click here to check out the election forum we’re building to help you compare candidates for the March 25th election. Click here if you need information about absentee ballots - every vote counts - don’t miss your opportunity to help shape our future.

Thanks for listening - I’ll keep in touch!

Sincerely,
Sandy Gleed, Pres.
North Andover United, Inc.