Barrett Warns of Tight Budget, Tough Times
NORTH ADAMS — Spiraling costs may mean drastic belt-tightening measures in the coming fiscal year, including four-day weeks for city employees and students.It also led Mayor John Barrett III to veto a home-rule petition to provide at least some retroactive benefits to military veterans disabled while working for the city. The carefully crafted measure was rejected because "of the fiscal crisis facing the city," he informed the City Council by letter.
The city's $35.4 million budget is up barely 2 percent over last year, but two-thirds of the $675,000 increase is based on rising pension, insurance, public safety and, especially, energy costs.
With gasoline over $4 a gallon, the mayor warned the City Council that there was little "wiggle room" left as the city faced an extremely tight budget for a second year.
"I'm concerned. We have to start looking at things and doing things a little differently," he told the councilors as he presented the fiscal 2009 budget on Tuesday night. "Such as looking a four-day work week and a four-day school week because of escalation costs for buses [fuel costs covered in contracts] and solid waste [transportation].
"It's becoming very, very expensive for us to able to maintain services and keep it affordable for everybody."
There's not much room to raise more taxes either without running into Proposition 2 1/2. The property tax reform measure sets a levy limit on communities; going over it forces an override vote, that may or may not pass.
Just a few years ago, the city had a $1.5 million levy cushion. That's shrunk by some 75 percent to about $350,000 to $400,000.
The School Department took the biggest hit, Barrett said. With a $16.3 million budget, up less than a 1 percent over last year, the public schools will still see reductions in teaching staff, mostly through not filling open positions. It adds up to 7.5 teaching positions and 27 teacher's aides.
Barrett is discussing taking the state to court with several other mayors whose cities have been hit hard by the failure of Chapter 70 education aid to keep pace. The state school aid is up $85,000 but that's overshadowed by rising costs. The McCann Technical School assessment alone is $80,000.
"Our education costs are up $200,000, or nearly a third of the costs in the budget," said Barrett. "And even with that increase, it's like losing half-a-million dollars ... Charges for teachers' pensions and health-care costs mean that we basically ended up with a negative $161,000."
Charter schools "continue to kill us," he said, because of the funding formula. A student attending the Berkshire Arts & Technology Charter Public School in Adams costs the city $13,500. However, the city spends $9,000 to educate the same student; school choice costs $5,000.
Barrett said the governor has failed to address the problem. Asked about charter school funding in the past, Gov. Deval Patrick has referred to the Readiness Project, a task force developing a 10-year strategic education plan. Its report will be revealed later this month but there is no indication how seriously its members looked at charter school funding reform.
The budget does provide for two more firefighters, hired in response to overtime costs. It also includes a raise of 2 percent on July 1 and one percent on Jan. 1 for certain non-union employees and by agreement for year with Teamsters 404 representing Department of Public Works employees.
Negotiations are ongoing with other city unions, Barrett said, and, hopefully, will go smoothly.
The good news is that the city's debt is down and so are interest rates. The mayor expects to submit a capital budget for new equipment. There are far fewer workers doing more responsibilities so "we need better equipment, especially in Public Works," he said.
But that's the only good news — the city has some tough times ahead.
"I'm very, very concerned," said Barrett. "Some communities are worse off ... but I do not see any light at the end of the tunnel."
The council also:
- Approved the sale of a small parcel of land taken by eminent domain to Arch Street LLC, which is renovating the former Clark Biscuit Mill into affordable housing, for $3,700. The council also approved with minor amendments an agreement with Arch Street protecting the city from any lawsuits stemming from the land taking. The sale is expected to close Thursday.
- Approved the agreement with the Teamsters.
- Accepted the budget and referred it to the Finance Committee, which will meet Tuesday, June 17, at 1 p.m.
Councilor Gailanne Cariddi, who crafted what she hoped was a compromise on the home-rule petition, said she wasn't completely surprised by the mayor's veto. "We did what the council had to do and he did what the mayor has to do."
"The main focus of the council now is to work on the budget and to successfully complete the process," she said. The veterans' benefit will be shelved for the moment.
