Lynn council OKs public hearing for ’09 budget

LYNN – The City Council set down a public hearing to discuss the proposed fiscal year 2009 budget of $250,276,694 on June 10, which is up from $246,567,902 in FY08.Mayor Edward J. Clancy Jr. said the budget was particularly hard to balance due to increased demand and a shortage of funds.A 4 percent tax increase has been projected for the city, which is right on par with FY08 according to Clancy, who said the increase is in line with the rate of inflation.”It’s basically the same song over and over again,” he said. “All the same usual suspects – health insurance, pensions, workman’s compensation – all of the contractual things.”Despite a bleak outlook, Clancy said the budget does not reflect any layoffs.”Unfortunately our public safety spending is down, but there won’t be any people cuts,” he said. “Most departments are about level funded and they’re all tight. The police and fire chiefs both did marvelous jobs.”With an increase of about $4 million for health insurance – about 12 percent higher than FY08 – Clancy said the figures are skyrocketing out of control.”If the GIC was passed, it would have been a huge help,” he said. “It’s a real battle.”The School Department budget of $107,808,394 proved to be the hardest part to balance.According to Superintendent of Schools Nicholas Kostan, the department was facing an $8.65 million deficit before Clancy allocated an additional $1.22 million in city funds, including $500,000 that was saved in retirement savings and non-salary cuts.Of that $8.65 million, $3 million came from an increase in health insurance, $1.1 million from charter reimbursements, $2.6 million in required union raises, $1 million in union step increases, $500,000 in longevity increases, $1.1 million in buybacks, $.65 million in severance, $1.2 million in unemployment, $1 million in special education and $.6 million in fuel and utility costs.The shortfall was reduced to $6.43 million and a frugal plan was devised to alleviate the gap.The Fallon and Washington Elementary schools are both projected to close and the Career Development Center will be combined with the Lynn Alternative High School.Despite the tight fiscal year, Clancy said the silver lining to the budget’s black cloud is that the city won’t be imposing user fees, trash fees, overrides, or debt exclusions.”I would never do any of that and I’m particularly proud there won’t be any,” he said. “I would rather shut a program down than impose a fee.”