Revere prepares for possible state aid cuts

REVERE – Worries about future state spending cuts are prompting city budget makers to put $400,000 generated from the upcoming year’s property tax increase into a reserve fund.Mayor Thomas Ambrosino said the money could help cover city expenses if state aid – a vital source of city revenue – is cut.The proposed 2009 shift in the property tax burden increases the tax rate most businesses pay from $19.63 for every $1,000 of property value to $22.01 per thousand. The residential rate rises from $10.13 for every $1,000 of property value to $11.23 per thousand.But declining home values could result in the average single-family residential tax bill of $3,333.02 dropping by more than $15. Owners of two-family homes could see their bills rise by about $26.”Generally, these favorable trends are due to a shift in the tax burden from residential owners to commercial owners, mostly because, compared to Fiscal Year 2008, residential property values declined and commercial values generally held steady,” Ambrosino stated in a letter to councilors.Values and tax bill amounts could change once local property value assessment work is completed.Gov. Deval Patrick announced hundreds of millions in state budget cuts in October in response to state revenue drops and warned other cuts, including reductions in vital state aid to communities might be necessary.State Rep. Robert DeLeo, who represents Revere and is one of the Legislature’s top budget makers, in November said revised state spending calculations may make December or January cuts unnecessary.Even with DeLeo’s guarded optimism, Ambrosino is preparing for reduced city spending through the next year.He is not filling jobs left vacant by retiring city employees in an effort to absorb spending cuts that could be triggered by the state’s worsening financial health.Local school officials are also sizing up state cuts and their possible impact on state spending.School Superintendent Paul Dakin has warned repeatedly that without an increase of $6.5 million next year, Revere may have to follow Lynn’s lead and close schools.Dakin has followed Ambrosino’s lead and left several school jobs vacated by retirements empty. He has also ordered energy savings measures started in schools.