Swampscott forecasts $1.75M deficit for FY09

SWAMPSCOTT-The financial picture for fiscal year 2009 is anything but rosy, according to town officials.Town Administrator Andrew Maylor gave residents and town officials hisannual financial forecast, which is required by the town charter, Tuesday evening. The budget he presented is $38.4 million and according to Maylor’s projections the town is looking at a deficit of almost $740,000.?The goal of the FY ’09 forecast isn’t to scare you,” he said. “It’s to prepare you for the next few months (of the budget process.”In addition to the deficit faced by the town, Superintendent Matthew Malone said the schools are looking at a deficit of more than $1 million.Maylor said he expects the town to receive $38.15 million in tax revenue,$1.28 million in tuition payments from Nahant, $1.8 million in motor vehicleexcise taxes, $4.4 million in state aid, $1 million in local receipts and$255,000 in other fees.In his forecast, Maylor said he assumed a 2.3 percent increase across theboard with exception of health insurance and fixed costs such as utilities, which leaves the town with a deficit of $740,000.According to Maylor, if the fiscal picture doesn’t improve and cuts cannot be made elsewhere up to 22 employees averaging $50,000 a year salary would need to be laid off to close the budget gap due to unemployment costs.In Maylor’s budget, $6 million is allocated for public safety, $5.6 million for generalgovernment, $4.8 million for health insurance, $3 million for pensions, $6.1million for debt service and almost .8 million for state charges. His budget also allocates almost $22 million for the school department, which is an increase of $500,000 but Maylor said contractual salary increases in the school department are more than $600,000 for FY ’09.Malone said the district would need at least $1.5 million more than allocated in Maylor’s budget for FY ?09. Malone said his proposed budget includes full-day kindergarten, three additional elementary school teachers to reduce class size, one additional middle school teacher and five new high school teachers.Malone pointed out that he closed Machon Elementary School last year and there were staff reductions. He said without additional funding there would be additional cuts in the coming year in staffing levels and programs.Maylor said his job is to present a balanced budget assuming no overrides but there are a number of items that could change, which could affect the budget including state aid, Nahant tuition and health insurance.But Maylor said based on current real estate trends he doesn’t see an increase in state aid and he doesn’t foresee health insurance costs decreasing until the town joins the group Insurance Commission or renegotiates health insurance with town employees.