Lynn mayor: ‘2010 is financial Armageddon’

LYNN – Despite an overwhelming defeat of ballot Question 1 at the polls Tuesday, Mayor Edward J. Clancy Jr. says the city is still in trouble when it comes to the 2010 budget.Although Clancy is relieved that the question, which would have phased out the state’s income tax and cost municipalities millions in state funding, was defeated by a nearly 2-1 margin, the mayor says the slumping economy and rising fixed costs will still force the city to cut jobs and services next year.”2010 is financial Armageddon,” Clancy said Wednesday, keeping with his pessimistic, yet realistic view of the economy. “If there is something we can do to save a large pot of money before we have to go into the classroom, pull the police officers out of their cars or take a firefighter off of the back of a truck, I wish someone would please tell me because I don’t see it.”Clancy said the problem is simple: in a slumping economy where new revenue is non-existent, fixed costs such as health insurance and energy continue to skyrocket ahead of projections, leaving Lynn and other municipalities helpless in the fight to stay above water.He said the city has done everything it can to cut unwanted spending from the budget, and now it must face the simple reality that it is not bringing in enough money to cover the cost of everyday services.”When Deval Patrick is cutting a billion dollars from the state budget, you know things are bad,” he said. “But it is not just Lynn, look at Swampscott or other communities. It is happening to everyone. I don’t know where else to go, where there is wasteful spending or so-called ‘fat’ in the budget going on that we can cut out.”With the election of Barack Obama to the presidency Tuesday, many predict that the stock market will recover and end 2008 on a positive financial note. Clancy says even if that does happen, it is too little too late, as the damage for 2010 has already been done.”I just don’t see that (making a difference), the money would have to have been made already,” he said.After a difficult 2009 budget that forced the School Department to close two elementary schools and lay off nearly 100 teachers, Clancy has asked School Committee and City Council members to start thinking of creative ways to save money going into next year so that the inevitable deficit will have minimal impact on services.School Business Administrator Kevin McHugh said Wednesday that the Question 1 decision helped the department avoid a “catastrophic” problem, but the 2010 spending plan will still be tough. Unlike last year, McHugh says he does not have a school available to close or as many programs to reduce that will provide a large chunk of money, which will make the cuts that much more difficult.”At this point in the state of the economy as it is I would look more to what we are going to get in Chapter 70 state aid,” he said. “I am not looking forward to a very good budget year, it is going to be just as bad as last year. You try to be optimistic, but we aren’t going to be adding any jobs, I’ll put it that way.”McHugh is hoping to get an idea of how much state funding will be coming in by late January so he can begin working with the new superintendent on making the numbers work.The mayor said he knows describing the situation as “Armageddon” or a “financial collapse” like he has in the past may come across as too pessimistic for some, but points out that he would rather be realistic now than shock the city when services are affected this spring.”There are two things in life that I can’t stand, that is surprises and presents,” he said. “I just don’t want anybody to get there in 2010 and say ‘why didn’t you tell us?’ I hope I am wrong. I hope there is something out there so we don’t have to go into the classroom, so we don’t have to cut police and fire, but right now I just don’t see it.”