Clancy says Lynn on solid ground as state lawmakers vote on budget

LYNN ? Mayor Edward J. Clancy Jr. says the city is on terra firma as Massachusetts lawmakers are scheduled to vote on a $27.7 billion budget that makes steep cuts across state government and raises taxes.
The proposal slashes state aid to cities and towns by up to 15 percent and could close as many as 12 Registry of Motor Vehicles branches statewide.
The agreement also calls for hikes in the state sales and meals taxes from 5 percent to 6.25 percent, as well as other expanded or new taxes.
There is some good news. The budget proposal also provides about $275 million to stave off increased transportation costs, including toll increases.
?At first examination of things it looks like the conference committee adopted the Senate’s numbers on education funding which hurts us but at the same time they put in additional $700 million (statewide) in aid that we will be able to use to backfill the education loss,” Clancy said Friday morning. “There is no doubt this is a big cut from the original 2009 state aid figures but we never did use the most optimistic projections as we worked on our budget so we are about where we figured we’d be.”
A press release from the offices of Senate President Therese Murray and House Speaker Robert DeLeo says the conference budget contains a sales tax increase from 5 percent to 6.25 percent that will generate $759 million in new revenues for fiscal year 2010 and help restore core services and programs for the citizens of the commonwealth. Even at 6.25 percent, 30 other states will have a higher aggregate state sales tax rate than Massachusetts.
?The House and Senate have passed a responsible budget that balances the needs of our commonwealth with the stark fiscal realities plaguing not only state coffers, but the global economy,” DeLeo said. “In the face of an unprecedented deficit, we have worked to shield our cities and towns and most needy residents from the pain of the current crisis. We believe the revenue plan included within the budget ? in conjunction with (Thursday’s) passage of transportation reform ? alleviates the need for a toll increase on July 1.”
The budget also includes a municipal relief package that allows cities and towns to raise additional revenue locally to maintain essential services provided by schools, police and fire departments. The plan allows municipalities to adopt a local option meals tax of .75 percent and also a 2 percent lodging tax that combined could generate nearly $95 million for cities and towns.
?In Lynn’s case I do not think there is really a reason to adopt the local meals tax,” Clancy said. “Obviously there are no hotels in the city so we could not gain from the additional 2 percent lodging tax and there are really not a great deal of restaurants in Lynn either. A community like Saugus may be able to benefit from the optional lodging and meals tax but it does not make sense for Lynn.”