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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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Why the Massachusetts Art Community Is Worth Continued Investment

By James BirgeGuest Column
How do we quantify the value of art on society and culture? Even eye-popping figures, like the $100 million estimate for the jewels stolen from the Louvre, or the record auction last fall that saw a piece by Gustav Klimt sell for more than $236 million can't fully account for the value of the history, stories, and emotions behind the creations themselves. But beyond that, there is a measurable financial, cultural and social benefit of the arts that is often taken for granted. 

Closer to home, arts and cultural production in the Commonwealth of Massachusetts totals nearly $30 billion annually, representing more than 4 percent of the state's economic output, according to the Mass Cultural Council. All told, more than 130,000 jobs are spread across the commonwealth creating a vibrant and thriving artistic community for us all to enjoy. 

Despite the obvious impact, these figures are under threat. A recent survey by MassCreative compiled recent federal cuts to the National Endowment for the Arts, the National Endowment for the Humanities and the Institute of Museum and Library Services and identified 63 grants canceled and $4.2 million in grant funding rescinded across New England so far this year. 

The dollars, of course, are important. But they also only scratch the surface on what they bring to the community. Today, we risk losing part of the culture and identity many now take for granted. 

While others choose to look past these less tangible, but just as vital benefits, we're doing the opposite. Massachusetts College of Liberal Arts is all in to ensure the next generation retains their access to works of art, while also being empowered to create themselves. 

Last fall, MCLA officially broke ground on the new Campagna Kleefeld Center for Creativity in the Arts, which will serve as a new hub for the campus and the local community for arts programming. When complete in fall of 2027, our students will benefit, but so will all of Berkshire County and artists in the surrounding area. 

This exciting new facility is just one of the many forthcomings our region can enjoy in the coming years. Just a few miles away, anticipation builds for the Fall 2027 anticipated opening for the Williams College Museum of Art. Years in the making, the museum likewise grows from an enduring commitment to the arts, both in curriculum and in practice. Exciting times are also underway for the Clark Art Institute with the construction of a new facility to house a collection of 331 works of art, including paintings, sculptures, drawings and other works. Their wing is scheduled for completion in 2028. And listeners will no doubt enjoy the sounds and melodies from Mass MoCA Records, the latest endeavor to foster creativity and artistic pursuits through music launched in October as well. Of course, many are also awaiting the reopening of the Berkshire Museum anticipated this summer, after a tremendous renovation process to rejuvenate the experience for visitors. 

So much time, energy, and yes, dollars, have already been invested in taking these facilities from ideas and sketches and making them reality. But they represent much more than new buildings. They represent new opportunities to cultivate and accelerate the thriving arts community in Massachusetts and the northern Berkshires. 

Art, regardless of the medium, is a reflection of who we are, where we've been, and what we aspire to be. It can be inspired by hopes or fears and chronicle collective triumphs as well as tribulations. The goal of art is not only to document history, but to inspire those positioned to change it and to feel something new or even to provoke us to revisit our own assumptions or misconceptions. 

As unfathomable of a number as $30 billion can seem, boiling down the impact to any number inherently discounts the unknowable downstream effects our graduates will bring to the community and the broader world after they leave our institutions. Likewise, rescinding $4.2 million now removes a huge chunk of that growth potential.  

Justification for making these investments today when simply boiled down to dollars and cents still places us on solid ground strictly from a financial perspective that forgoes all of the intangible, but no less valuable, benefits as well.  

The arts are still worth our support. And our community will be richer for it. 

James Birge, PhD, is president of Massachusetts College of Liberal Arts in North Adams.  

 

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