Marblehead budget depends on state

MARBLEHEAD – Six weeks before the May 2 Town Meeting, Town Administrator Tony Sasso and Finance Director John McGinn are still not sure of their estimated $63.4 million budget for fiscal year 2012.Next year?s budget is designed to maintain the current level of service and the current labor force, but whether that continues is dependent on the state Legislature and their deliberations on Gov. Deval Patrick?s proposed state budget.Sasso told the Marblehead Chamber of Commerce Wednesday morning that he and McGinn based that budget on the 5 percent drop in state aid included in Gov. Deval Patrick?s budget for next year ? but “the governor?s budget is in question.”Sasso and McGinn are hoping the Legislature finalizes the budget sooner rather than later.?Normally we receive some guidance on local aid by March,” Sasso said. “It?s been years since we went into a Town Meeting (without) a figure.”If the reduction in state aid is greater than 5 percent, Sasso and McGinn will have to revisit local department budgets and reduce those requests even further.The town administrator warned the chamber that Fiscal 2013 could be even more challenging if local revenue doesn?t begin to recover from a $400,000 drop, mostly excise tax, if state aid continues to decline and if health insurance rates continue to increase.He also pointed out that the continuing increase in Marblehead enrollment in the Marblehead Community Charter Public School has a negative effect on local school aid under the current charter school funding formula.Sasso and McGinn have assumed that 160 students will attend the charter school, at a $1.78 million cost.Sasso praised the town?s public employee unions for agreeing to shifts in health insurance premium costs that have saved the town $8.6 million in recent years.