Saugus faces $800G budget shortfall for FY 2012

SAUGUS – Town Manager Andrew Bisignani said Saugus faces a steep deficit despite an additional $220,000 in state aid for fiscal year that begins in October.Saugus will see its state aid bump up from $7.3 million to $7.5 million, however it?s still down from recent years.According to Bisignani the town is faces a deficit of around $800,000 due to a net loss of $2.3 million in state aid since 2009 when the town received $9.1 million.?It just makes it that much more difficult,” Bisignani said. “We have to find out where we?re going to get that money to offset the decrease in state aid. Before we set the tax rate we?re going to have to resolve these issues.”He added, “The state?s revenues are down. I?m not blaming the state. We have no control over it.”State Rep. and Selectman Chairman Donald Wong said the local aid amendment to the state budget will help Saugus, but there?s still a lot of work to be done with the budget.?Right now with the economy the way it is any amount of money we get will help fund some of the different departments,” Wong said. “We?re still looking at other ways to bring more revenues into our town. Where we?re taking away, let?s get on even par with last year instead of going further down. I want to stop (cuts in state aid) first, then hopefully we can start building it from here.”With Fiscal Year 2011 set to close in September, Bisignani said some accounts, including legal services, Medicaid taxes and unemployment benefits will become under-funded next year.?Those are accounts that I suspect will be under-funded by the fourth quarter of this fiscal year, we?re going to have to find money to plug those holes and supplement these appropriations,” Bisignani said. “I?ve been saying since last May that the budget for Fiscal Year 2012 is going to have problems. There are going to be shortfalls because we don?t have enough revenues.”Bisignani said the town will receive reimbursements from the state and federal level, including the $261,000 Wheelabrator settlement and $170,000 for snow and ice removal from the Federal Emergency Management Agency.Bisignani said the town could also see as much as $500,000 in additional revenue once the Route 1 Walmart project is completed, but it wouldn?t take effect until the following year.?The budget at this point in time is not balanced,” Bisignani said. “And it?s going to require further appropriations or reductions in expenses sometime before the tax rate is set.”