North Adams Continues Bleak Budget Outlook

NORTH ADAMS, Mass. — The City Council on Tuesday night approved a $1.18 million reduction in the city budget to be offset by use of the land-sale account.

The transfer will balance this year's budget but Mayor Richard Alcombright warned there were "serious decisions" to be made for next fiscal year because the city has a $1.2 million structural deficit that will be exacerbated by possible state cuts of up to 12 percent.

"It's going to mean ugly, painful cuts for next year," said the mayor. "In the best case scenario, we're hearing 5 percent cuts in state aid next year; reality is, a couple of candidates in the election this year were talking about 8 to 12 percent."

The city had requested special legislation earlier this year to allow it to take nearly $900,000 from the land-sale reserves (most from the sale of watershed lands in Vermont) to pay off the Medical Insurance Trust debt to balance the budget. North Adams has been struggling with a budget deficit caused by declining revenues and state aid; much of the city's free cash has been used over the past few years to staunch the bleeding from the loss of education and municipal aid.

"Three years ago you had close to $4 million in reserves and the last two fiscal years particularly, a