Local aid loss could be grim for Swampscott

SWAMPSCOTT – Swampscott would lose approximately $500,000 in state funding for the next fiscal year if local aid is reduced by 10 percent.Earlier this week House Speaker Salvatore F. DiMasi said state aid to cities and towns will be cut by up to 10 percent next year, which is a major concern to local officials.At the Board of Selectmen meeting Tuesday evening, Town Administrator Andrew Maylor briefed the selectmen on statements made by DiMasi and how it could affect the town.Maylor said when he prepared his preliminary budget for FY ’10 he budgeted for level funded local aid and any cuts would be painful. Maylor said Gov. Deval Patrick is expected to present his balanced budget around Jan. 28 and until that time it would be almost impossible to get accurate numbers but he is preparing a budget that reflects the possible 10 percent cut.He went on to say that municipal budgets are generally speaking 70 percent salary so any cut in local aid would necessitate layoffs. He said at this point he expects approximately 10 non-school positions would have to be eliminated.Maylor said any cuts in local aid would also impact the school department, which recently announced it would not be closing Hadley School to close its budget gap.Even prior to DiMasi’s announcement the town was bracing for cuts despite the recent move by town employees to join the Group Insurance Commission, which allows municipalities to purchase health insurance at a discounted rate. Joining the GIC is expected to save approximately $600,000 in the next fiscal year.