Friday, January 22, 2010
Governor Level Funds Local Aid
While I am encouraged by the governor's attempt, I am extremely skeptical about this being possible. Given the shortfall projected in the state's overall budget I will be interested to see what services have been cut to accomodate the increase.
Those who are harmed in the Governor's budget will spend a lot of time lobbying the legislature to restore those cuts...at the expense of local aid.
Let the roller coaster ride that is the state budget process begin.
http://www.boston.com/news/local/breaking_news/2010/01/patrick_propose_1.html
Friday, November 6, 2009
Good news travels slow
I came home yesterday to see a note in my daughter's kindergarten folder. It was a short newsletter sent out by the Home & School Association (H&SA). The H&SA is a private non-profit group that raises money to supplement the budget of the elementary school in Millis, MA. The newletter gave information about future events and meetings, but it also reported how successful the fall fundraising drive was. Over $10,000 profit was made in the annual holiday gift sale project. This is $10,000 of private money donated to public education in a small (8,000 residents) middle class town.
The second example was found this morning when I noticed a facebook post from my friend Eric Dahlberg in Chelmsford, MA. It was the link to an article about an "adult spelling bee" that was hosted by the Chelmsford Educational Fund. Same type of organization and the HS&A, just different name. While the article didn't tell how much was raised, it was just another example of how, when given the chance, people will help.
I know this is not completely unique. Many (if not all) school communities have some version of a Parent/Teacher Association (PTA). In fact, I can remember doing fundraising for my elementary school in Troy, NY...so that is not new either.
It would just be nice to see more reports about the willingess of people to spend their own money to help our kids get a better education. Too often we just see articles about people who oppose tax increases that will "benefit schools". Funny thing is, most of the time they are talking about the same exact people!
Tuesday, October 27, 2009
When Government cries wolf...
However, in Massachussetts, the local level is the only one that voters can actually have a direct input. Many communities have either a representative or open town meeting form of government. This allows residents to vote on nearly every decision (especially fiscal decisions) made for their town. While this is the most democratic format for decisions to be made at the local level, it is also the one place that voters can take out thier anger at the waste and patronage they see in the news.
Massachusetts also has a law called Proposition 2 1/2. This law requires that no city/town property tax revenue can be increased by an aggregate value of 2 1/2% in any given year without a ballot question being approved at the voting booth. In theory, this is a great law. It requires local governments to contain expense growth within 2 1/2% or justify a higher amount to the voters (referred to as an "override vote").
Our state government doesn't have that restriction. In fact, just last August the sales tax was increased from 5% to 6.25% without a ballot question. The sales tax was also expanded to cover items that had previously been excluded...no ballot question there either. No, the Governor and Democratic majority in the legislature told us that they had turned every stone and pinched every penny...there was no reform left to do. There was no choice but to raise taxes.
And now, we see just another example of a rock they missed.
One of the secondary consequences of news reports of wasteful governement is that people tend to dismiss any request for increased funds out of hand. This immediate dismissal is felt most at the local level when instances arise that do require an override question to be placed on the ballot. Its unfortunate because many of the people who always vote "no" on overrides are the same people who, like I, favor smaller/local governement over bigger government.
I would much rather pay more taxes to town hall knowing I can influence how its spent instead of sending more money to the state and federal government so they can create 35 departments that serve the same function. Funny how the Senate President is just realizing that...
Senate president: Consolidate economic agencies to save money
Monday, October 26, 2009
Another pay cut for municipal workers...
Sharing the costs of increased premiums or adding a deductible to the employee's portion of the costs is not out of the norm for most companies these days. In fact, my own company entertained that idea just two weeks ago as we discussed plan changes for next year. The problem I have with this proposal is that it is going to be effective in February...mid-year!
One option that is being discussed by the GIC is to add a $750 deductible for single members, and $2,250 for family plans. Given the timing, it could basically eliminate municipal employees coverage for the second half of the fiscal year.
How could this happen? The GIC increased premiums by 3% for the current fiscal year...only 3%!!! While everyone enjoyed the good news (myself included), it appears that more questions should have been asked about the low increase. Or, did the state assume more communities would choose to enter the GIC plan...thus underestimating the premium revenue that would be generated. Wouldn't be the first bad estimate by those on Beacon Hill this year (see tax revenue).
Either way, once again it is the municipalities that will absorb the burden of bad estimates and planning by those on Beacon Hill.
Friday, October 9, 2009
Collaboration should be a first choice
Posted using ShareThis
Due to a number of people putting the needs and desires of high school kids above all else, two communities can take pride in one high school football team.
Millis HS could not field a team...
Hopedale didn't have a program...
Some school administrators would have given up and both schools would have lost. Instead, a relationship has been established. There were no terrotorial or financial hurdles deemed to large, and no beaurocratic red tape delayed the process.
This is how communities should be utilizing each other...especially when it comes to educating our kids. In order for it to work, though, we need adminstrators and policy makers exploring all options and putting the kids first!
State will pass most of the buck to Cities/Towns
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The more open about it they are the more of a guarantee it is...
Elected officials always down-play bad news.
- If they say "its not an option right now"...that means its possible.
- If they say "its possible"...its probable.
- If they say "its likely"...its definite!
State Rep. John Fernandes, D-Milford, said current-year budget cuts are inevitable, and warns communities to take care on discretionary spending.
"Local officials need to be cautious in budgeting, and how they handle their financing, because there is so little funding," said Fernandes.
State officials are admitting there is no more rainy day funs or federal stimulus money. They are saying that local aid cuts are likely, so they're definite. Oh, the state says they'll make cuts too.
I'm sure it will be the same across the board, non-targeted, degree of cuts that will only ensure higher inefficiencies (see RMV wait times). What needs to be done are specific reductions that improve the efficiency in state government. There also needs to be a review of the purpose and necessity for all state agencies. Those that are no longer needed or are unsuccessful should be eliminated.
We don't need all state employees to share equally, we need the state beuracracy to be steam-lined.
Until this happens, local governments should not be left holding the bag.
Friday, October 2, 2009
Municipalities will have to make tough choices
It appears the state of Massachusetts is once again in the early stages of a budget crisis. And the cities and towns of the Commonwealth will be left holding the bag.
A year ago at this time, tax revenues (it was capital gains taxes last year) were missing estimates and the politicians on Beacon Hill began searching for any extra money.
Well, they found some. Most of it came from our newly elected President, and the rest came from rainy day funds that were not going to be replaced. That was last year...
Here we are, a quarter of the way through FY10, and revenues are missing expectations again. This year its the JUST INCREASED sales tax that is falling short. Ok, so let's just go back to the well...only problem is that the wells are dry! The "rainy day" funds were virtually depleted in order to balance the current budget and there doesn't appear to be another "Stimulus Package" coming from Governor Patrick's good pal in D.C.
What does this mean? If the sales tax increase isn't generating the necessary funds for THIS YEAR, how is it also going to make up for the Stimulus Funds AND Rainy Day funds that will need to be covered in FY11.
Answer: Tax increases or Shifting the burden to cities and towns
Given that we are in an election year, I would expect it to be the latter of the two. Meaning, the state will shift an even larger portion of the expense burden to the 351 municipal governments in Massachussetts. The burden will be shifted most obviously through cuts to local aid. However, it will also be shifted through state-mandated increases to certain categories of expenses.
Given the current revenue trends at the state level, I believe that all mandated expense formulas (such as the "foundation level" for education) should be reduced to the FY09 levels. This will ensure that the state can maintain its proportional obligation to cities and towns. Until the state can keep up with its responsibility to the municipalities, there should be no expense increases mandated from Beacon Hill.
In lieu of this adjustment to mandated expense levels, municipalities will be forced to either cut positions beyond safe levels. That is unless, residents vote to increase their property taxes in excess of the Prop 2 1/2 limit (yes...OVERRIDES!).