Mayor Clancy upset over loss of stimulus funds

LYNN – The Lynn School Department received more bad financial news Thursday when Gov. Deval Patrick announced that he would take $412 million in federal stimulus money to make up for a gap in Chapter 70 local aid.It is believed that taking the money for local aid use will harm local communities who have been waiting for months to receive stimulus funding from the state.School officials learned of the decision shortly before Thursday night’s School Committee meeting and expressed frustration with the governor.”This appears to be a second round of 9C cuts,” said Mayor Edward J. Clancy Jr., referring to the governor’s local aid cuts made earlier this year. “So there goes the stimulus money.”Although stimulus funding was not included in the fiscal year 2010 budget, and the department is still waiting to hear when they will receive money and how they will use it, the federal bailout cash would be useful to the department in a variety of ways.As administrators struggle with a $4-$5 million budget cut that will force layoffs and school closings, Superintendent Catherine Latham has been hearing conflicting reports on stimulus money.While Patrick released the amount of stimulus funding each community would receive earlier this year, the State Department of Elementary and Secondary Education almost immediately discounted those numbers, noting that the way communities receive money and the total amount could be subject to change.Since that time, it seems that every person involved at the state level has a different opinion on stimulus money, not to mention a different amount for each community.The $412 million in stimulus money Patrick will use is being drawn from the $813 million that the federal government is giving to the state to bolster state aid to school districts and state colleges.With this move by Patrick, only about $70 million will be left for educational use.The budget problem has come to the forefront as state revenues have tumbled over the last two months, particularly in April when tax revenue normally spikes.The problem has caused a $953 million shortfall in the current fiscal year 2009 budget. With just two months left in this fiscal year and 80 percent of the budget already spent, there are few spending items to cut that would close the gap.Patrick’s proposal to take stimulus money should ensure that the state can get through this year.The senate is expected to release its fiscal year 2010 budget next week, which would be highlighted by a proposed hike in sales tax.Speaking at the School Committee meeting, Latham expressed frustration with the Governor’s latest moves, noting that stimulus money was going to be used to create an alternative middle school program at the Fecteau-Leary Building next year, among other projects.