Local officials brace for possible deep cuts to state aid

The state is facing a $1 billion deficit for the current fiscal year and Gov. Deval Patrick has asked for expanded 9C powers, which is troubling to many local officials.The term 9C refers to a section of the Massachusetts General Laws that governs state finances and deals with revenue deficiencies and what steps the governor can take to ensure a balanced budget when projected revenues fall short of projected spending levels.With 9C power there are limits to what the governor can do without legislative approval. He would only be allowed to make cuts within executive branch agencies on his own, which means he could not reduce local aid. But expanded 9C powers could give Patrick the authority to cut local aid, which is a concern in many municipalities, including Swampscott.Lynn Mayor Chip Clancy said he has already sent a letter to City Council President Tim Phelan and Superintendent of Schools Nick Kostan regarding the possibility of Patrick obtaining expanded 9C powers.?It’s a fast ball right on the chin to communities,” he said. “Any reduction in state aid would require substantial reductions in personnel and it will mean substantial cuts in services. The thing most people don’t appreciate about municipal services is most of the money is spent on schools, fire and police. Any cuts in local aid would mean cuts in those three areas. We would have to just whack away at essential services.”Saugus Town Manager Andrew Bisignani said Saugus gets approximately $10 million, which is 14.5 percent of its budget, from state aid.?In February 2003 when there was a cut it was devastating to the town,” he said. “We had to cut 20 positions because the majority of our budget is salaries. Any reductions in state aid would involve reductions in personnel. We’re just trying to maintain some sense of financial stability and stop the bleeding.”Swampscott Town Administrator Andrew Maylor explained local aid helps communities pay for education, police officers and firefighters.?At the very least this tells us FY ?10 doesn’t look good,” he said. “There are also some implications there may be reductions in state aid this year. If it ever got that catastrophic we would be forced to make mid-year reductions.”Maylor said he hasn’t started looking at where to make cuts for the current fiscal year yet.?We’re not thinking about cuts right now,” he said. “But we could be doing that in a few weeks. The minute we hear expanded 9C authority is possible, we would have to start looking at alternatives.”Maylor said making budget cuts mid-year would be exceedingly difficult and he does not think it would be possible without cutbacks in services and personnel.Swampscott Board of Selectmen Chairman Anthony Scibelli said any cuts in state aid for the current fiscal year, which ends June 30, 2009 would be devastating to Swampscott.?It would be very, very difficult to make cuts at this point in the fiscal year,” he said. “But I realize it is something we may have to face. If it comes to that, everything would be on the table.”The last governor to receive expanded 9C powers was former Gov. Mitt Romney in Fiscal Year 2003 and the state Legislature limited his authority primarily to local aid, which was slashed in many communities in the state. Then in November 2006, just weeks before leaving office, Romney invoked his executive 9C powers to cut $425 million from the FY ?07 budget. Upon taking office, Patrick immediately restored what Romney had cut.Clancy pointed out that even if Patrick does not receive expanded 9C powers, the fact he asked for them has dire implications for the FY ?10 budget.?Patrick is not Romney so when he is even contemplating seeking expanded 9C powers it’s a fast ball,” he said. “Even if 9C powers aren’t granted the hemorrhaging of revenue promises to make FY 2010 extremely difficult.”