Lynn spared aid cuts

LYNN – Lynn’s municipal and school budgets are far from resting on solid ground in today’s struggling economy, but Gov. Deval Patrick did deliver some hope Tuesday, saying that his first round of budget cuts would not affect local aid.Patrick, who is set to announce hundreds of millions of dollars in budget cuts today, made the announcement at a brief press conference in Boston Tuesday.According to the Associated Press, Patrick said he planned to lay off employees and make other deep cuts that would “affect the public’s interaction with the government.””This is not about cutting so-called fat,” Patrick said. “This is going to cut muscle, because the scale of the situation calls for that. We are going to feel it in services, and we are going to see a smaller workforce.”The decision not to cut local aid, which Patrick has requested but has not received the authority to do, is a small victory for Lynn, at least for the time being.Facing a fiscal 2009 budget that is already at risk as costs continue to rise without the benefit of new revenue, Mayor Edward J. Clancy Jr. warned last week that the city was headed toward a financial disaster if the governor cut local aid.Speaking prior to Patrick’s announcement Tuesday, Superintendent Nicholas Kostan said he was watching the State House closely this week, and even if the governor leaves local aid untouched this year, the 2010 budget would most likely be one of the toughest yet.Kostan and his staff were forced to lay off over 90 teachers, close two elementary schools and eliminate or consolidate several programs due to a $6 million deficit in the fiscal year 2009 budget, and next year promises to bring along more financial challenges.”Last year was a difficult budget and it looks like we are going to have another tough one this coming year,” said Kostan, who has announced plans to retire in January. “It will be interesting to see what the Governor is going to do with (this year’s) budget.”Another area of concern in Lynn is Question 1 on the November ballot, asking residents to repeal the state’s income tax. Clancy fears that if the question passes, the city will not have enough money to fund its basic and essential services, and has provided figures in the past that suggest such a cut would cost the city over $16 million in local aid funding.Patrick will unveil the size of the state’s shortfall today along with his planned cuts and layoffs. The Revenue Department said earlier this month that tax collections fell $223 million short during the first quarter. Patrick said he expects that trend to deepen, so he’s going to make large cuts now and hope for the best.The governor also is expected to announce he will again tap the state’s $1.8 billion rainy-day fund. The state’s fiscal 2009 budget, which went into July 1, already is predicated on a $400 million withdrawal from the fund.The Lynn School Committee will discuss any potential ramifications of Patrick’s cuts Thursday night at its regularly scheduled meeting, 7:30 p.m. at Lynn Vocational and Technical Institute.Material from the Associated Press was used in this report.