Nahant officials concerned over how to pay unemployment costs

NAHANT – Town officials expressed concern that if the upcoming override vote fails, they do not have the money to pay for laid-off employees’ unemployment benefits.”?There will certainly be unemployment costs that I haven’t budgeted for, and there’s only one place where it can come from and that’s the general fund,” Town Administrator Mark Cullinan said.School officials proposed a $260,000 override to fill a budget shortfall due to a $113,000 reduction in state and federal funds coupled with a dramatic increase in special-education costs.The proposal will add approximately $189 a year or $3.50 per week to the average tax bill, according to numbers from Town Accountant Deborah Waters.In order to be enacted, the override had to pass both the Town Election and Town Meeting, both held on April 30. Town Meeting passed the measure, but the ballot question failed by 52 votes, however, 417 to 365. Citing confusion over the fact that both votes were held on the same day, selectmen voted at their May 5 meeting to hold a special election on June 25 to reconsider the override.If the override fails, the town will have to pay 100 percent of the unemployment costs, even though the cuts will come from the school budget.A preliminary “very rough” estimate from Town Accountant Kathy Famulari put the cost at $85,000.”I don’t think that people understand that we will have to look at cuts in other departments to pay this unemployment,” said Waters. “It isn’t just a school issue, it is a town-wide issue. It will impact most of the significant town departments.”But Waters, Cullinan and Superintendent Philip Devaux said that the actual number could be higher or lower.In fact, Devaux estimated the cost at between $100,000 and $150,000 a year; Cullinan estimated $200,000 a year, but said that Devaux’ estimate was probably more accurate. The town has paid a former full-time teacher who was laid off $615 a week since June 2009, for instance, Waters said.Judi Cicatiello, Director of the Massachusetts Department of Unemployment Assistance, said that a new claim could be eligible for a maximum of 46 weeks of benefits based on current state law.But she explained that unemployment benefits were like an “account,” the balance of which could depend on the person’s salary and contributions, union contracts and whether they have opened previous claims.Most importantly, some teachers will likely find new positions, she said.The town has budgeted $55,790 in 2012 for unemployment benefits, of which approximately $25,000 is already earmarked to pay benefits for other employees, she said on Monday.