Thursday, October 09, 2008
The Budget Mess and How to Solve It
[Update: I got some numbers mixed in up reading all the comments and articles at the Reporter -and things were actually more bleak than what I originally thought. I've updated the blog to reflect that. My apologies.]
Honestly, I'm not even going to link to the Reporter, and all the many budgetary articles (and sordid comments) that go along with it. We all know the budget problems - and they're not good.
Let's just deal with the facts:
Fact Number 1. We're facing a budget shortfall of around $1.3 million. That's a pretty hefty number, but not so huge that it can't be tackled in a way that can save this town's elementary schools - the one area on the MCAS where Swampscott scores among this state's elite.
Fact Number 2. The town unions voted against the GIC, which would have saved around $500,000 a year. That doesn't make them "greedy," just shortsighted. There are very real reasons for the union to vote against the GIC, but they still missed the bigger picture. It would have been a quid-pro-quo they could have collected on in the future, when times were better. Plus, it would have saved jobs. Most importantly, it may have healed the bad blood between the town, its elected officials, administration and teachers. That bad blood is making this entire town stink.
Fact Number 3. We're sitting on two properties worth approximately $5 million combined, along with several others that will be sold off. The sales can't be used on the general budget, but the property taxes they'll bring can be used for those purposes. How much will those property taxes be worth? If town meeting passes the recommendation, they'll be in excess of $500,000 - going a long way toward solving our fiscal woes. If Town Meeting doesn't pass the recommended plans, it will be just as damaging to the town as the town employees voting down the GIC.
Fact Number 4. If $1.3 million or something close to it is what it'll take to keep Hadley open, that's a few hundred dollars per taxpayer over an entire year. That's not a huge number to keep our integrity and maintain our record of elementary-level excellence. At worst, Swampscott is set to reach its fair share of Chapter 70 funds in two years - which will mean hundreds of thousands more in school spending. It won't be that much longer before the town will get the $500,000 annual income in property tax revenue from the Greenwood/Temple projects. This isn't a time for any nuclear options, such as closing Hadley, but rather it's a time to do what it takes to stay affloat - the metaphorical need to work overtime, not declare bankruptcy and foreclose on the house.
Conclusion: If we have to lay off a few town employees, we can always hire more in a few years, when our fiscal situation is better. We can't always open up a new school. That's the biggest reason there is to do whatever it takes to keep Hadley open.
It'll take some time to sell the town's vacant properties, but not so long that they couldn't make a difference in next year's budget (even if its number will be significantly reduced compared to what they'll bring in 5 years from now). That could help alleviate some of this pain, though only a small fraction. Thankfully, despite the the state's fiscal difficulties, our local aid won't go down in next year's budget - as politicians will be loathe to reduce municipal aid. All this means better days are ahead, but Swampscott needs vision and courage to get there.
Honestly, I'm not even going to link to the Reporter, and all the many budgetary articles (and sordid comments) that go along with it. We all know the budget problems - and they're not good.
Let's just deal with the facts:
Fact Number 1. We're facing a budget shortfall of around $1.3 million. That's a pretty hefty number, but not so huge that it can't be tackled in a way that can save this town's elementary schools - the one area on the MCAS where Swampscott scores among this state's elite.
Fact Number 2. The town unions voted against the GIC, which would have saved around $500,000 a year. That doesn't make them "greedy," just shortsighted. There are very real reasons for the union to vote against the GIC, but they still missed the bigger picture. It would have been a quid-pro-quo they could have collected on in the future, when times were better. Plus, it would have saved jobs. Most importantly, it may have healed the bad blood between the town, its elected officials, administration and teachers. That bad blood is making this entire town stink.
Fact Number 3. We're sitting on two properties worth approximately $5 million combined, along with several others that will be sold off. The sales can't be used on the general budget, but the property taxes they'll bring can be used for those purposes. How much will those property taxes be worth? If town meeting passes the recommendation, they'll be in excess of $500,000 - going a long way toward solving our fiscal woes. If Town Meeting doesn't pass the recommended plans, it will be just as damaging to the town as the town employees voting down the GIC.
Fact Number 4. If $1.3 million or something close to it is what it'll take to keep Hadley open, that's a few hundred dollars per taxpayer over an entire year. That's not a huge number to keep our integrity and maintain our record of elementary-level excellence. At worst, Swampscott is set to reach its fair share of Chapter 70 funds in two years - which will mean hundreds of thousands more in school spending. It won't be that much longer before the town will get the $500,000 annual income in property tax revenue from the Greenwood/Temple projects. This isn't a time for any nuclear options, such as closing Hadley, but rather it's a time to do what it takes to stay affloat - the metaphorical need to work overtime, not declare bankruptcy and foreclose on the house.
Conclusion: If we have to lay off a few town employees, we can always hire more in a few years, when our fiscal situation is better. We can't always open up a new school. That's the biggest reason there is to do whatever it takes to keep Hadley open.
It'll take some time to sell the town's vacant properties, but not so long that they couldn't make a difference in next year's budget (even if its number will be significantly reduced compared to what they'll bring in 5 years from now). That could help alleviate some of this pain, though only a small fraction. Thankfully, despite the the state's fiscal difficulties, our local aid won't go down in next year's budget - as politicians will be loathe to reduce municipal aid. All this means better days are ahead, but Swampscott needs vision and courage to get there.
Labels: budget, schools, taxes
# posted by Ryan @ 11:00 PM 
Comments:
<< Home
Hi Ryan,
I am disappointed in your Blog entry. Your facts are not as accurate as normal. Especially #4. You seem to have no issues with the inequities in Ch 70 funding. Also, you should be smart enough to realize that the formula will have changed in two years. We will NEVER regain the nearly $1.5 million lost.
I am disappointed in your Blog entry. Your facts are not as accurate as normal. Especially #4. You seem to have no issues with the inequities in Ch 70 funding. Also, you should be smart enough to realize that the formula will have changed in two years. We will NEVER regain the nearly $1.5 million lost.
# posted by 
: October 11, 2008 8:37 AM
: October 11, 2008 8:37 AM
Trust me, I have issues with Chapter 70. Big issues. The $1.5 million is gone - and our town has definitely felt it. We're losing our edge and people are angry. But I think there is a light at the end of the tunnel, we just have to make it there in one piece, even if bumped and bruised along the way.
Post a Comment
<< Home
