State House News Service
BOSTON - Lottery revenues trail projections despite sales growth of $90 million through the first quarter of this fiscal year, Treasurer Timothy Cahill told other state leaders Thursday.
Lucrative sales from a July Mega Millions jackpot and "healthy" returns from a new $20 ticket have put the Lottery, which provides vital funding for municipalities, on track to beat last year's sluggish revenues, Cahill said in a letter. The state's legalized gambling system appears unlikely to meet growth projections of nearly 15 percent, though, which would create a shortfall that would send budget writers scrambling to find cash to send cities and towns.
In his letter Thursday, Cahill said budget writers, for "some inexplicable reason," had estimated overall Lottery revenues would increase 6.6 percent when putting together the fiscal 2007 budget. In fact, the Lottery slumped 1.5 percent in the fiscal year that ended last June, after a record-breaking fiscal 2006.
"Unfortunately, the incorrect and somewhat fanciful projection from the FY07 budget continues to be used as a baseline for allocating current and future aid to cities and towns," Cahill wrote Thursday.
Through the first quarter of this fiscal year, sales have increased $59 million over fiscal 2006, and $90 million over last year, according to the letter. But projections anticipated 14.8 percent growth, meaning sales would have to increase $660 million over last year.
"It is far too early to predict where our numbers will be in June 2008; however, we are encouraged thus far by the early trends and expect to return in excess of $900 million net revenue to the commonwealth," Cahill said.
State budget writers assumed Lottery returns to cities and towns of $935 million when assembling the budget for this fiscal year.
House Speaker Salvatore DiMasi last month demanded Cahill provide an explanation for shortfalls that the treasurer later chalked up to inaccurate calculations by the speaker.
In a Sept. 28 speech to business leaders, DiMasi said he was worried the state would have to account for $120 million it sent to municipalities last year but that the Lottery never produced.
DiMasi spokesman David Guarino said the speaker was trying to encourage a public airing of Lottery revenues.
"This is the discussion we should be having," Guarino said. "[DiMasi] remains concerned about the existing shortfall and the possibility of a greater shortfall next year. We're going to work with the treasurer, the governor, and the Senate president and try to determine whether this is an aberration or part of a trend that we should be concerned with."
Mature System
In the letter provided to the News Service by his office, Cahill pointed to a "mature" Lottery system earlier this year when making the case that the state should welcome casinos as a new source of revenue. The games, he said, had been overtaken by competition from other states and gambling opportunities.
Cahill spokeswoman Alison Mitchell said the letter was intended to remind other leaders that "the Lottery, while it is the best-run lottery in the country, is mature, and can only grow so much."
Late Thursday, a Patrick spokesman said aides had not seen the letter, and declined to comment.
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Lanesborough Town Meeting to Vote Budget, Bylaws & Vehicle Purchases
By Breanna SteeleiBerkshires Staff
LANESBOROUGH, Mass. — Tuesday's annual town meeting includes a $14 million operating budget, new short-term rentals, accessory dwelling units and sign bylaws, and free cash article appropriations.
Voters will gather at Lanesborough Elementary School on June 9 at 6 p.m. to decide on 20 warrant articles.
The fiscal 2027 budget is up a little over 10 percent. Some of the main increases are the Mount Greylock Regional School District and McCann Technical School: the McCann assessment is up more than 30 percent based on factors including enrollment and the school renovation project, and Mount Greylock's is up 11 percent.
Article 11 is for the town to vote to approve from free cash the sum of $16,298.48 for the McCann Technical School roof and window replacement project so as not to impact the budget. Article 3 is appropriate $7,586,284 for Mount Greylock Regional School assessment.
Another notable increase was in life and health insurance, showing an increase of about 26 percent.
Ambulance Director Jen Weber is planning 24-hour coverage, which means more staff and a hike in her budget. One of the articles asks the town to appropriate $234,100 to operate the Ambulance Enterprise Fund for salaries and expenses.
Many town departments are looking for new vehicles. The Fire Department is looking to replace its outdated 1996 fire engine. There are two articles related to the truck at a total of $813,366. Article 12 would transfer $225,000 from free cash into the Fire Truck Stabilization Fund; Article 13 would transfer $605,000 from the fund and authorize the borrowing of $208,366.08.
The total includes a $100,000 contingency cost to cover any additional costs if a 2026 model-year chassis cannot be secured before new emissions standards go into effect in 2027.
The board at its last meeting moved the $225,000 transfer to come before the borrowing article, changing the stabilization number. If the $225,000 is not voted on, then they will amend the next article's number on the floor, subtracting the $225,000. This shows the borrowing number significantly lower.
Article 17 asks for the transfer of $80,000 from free cash to replace a police cruiser.
Police Chief Rob Derksen's aim is to replace one vehicle every other year, meaning the oldest vehicle gets replaced about every 10 years.
He stressed that if delayed this year, the town may have to double up in a future year to get back on schedule, and that paying later usually costs more. The article will ask for $80,000 from free cash, the vehicles used to be funded by the BHRD.
Lastly, the Highway Department is looking to replace a 2014 International dump truck that will be a total of $330,000 and will take two to three years to receive.
Money will be used from last year's approval of $250,000 from free cash for the replacement of a 2012 highway front-end loader that was underspent $49,261. Town meeting is being asked to approve a transfer of $53,274.85 from free cash and the use of $227,464 from funds from the Sale of Town Real Estate to fund the balance.
Other free cash proposals include $1,200 to purchase software to support tracking and ongoing maintenance schedules of town-owned vehicles; $42,000 for the replacement of the Highway Department's storage shed roof, $200,000 to reduce the tax levy.
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