State budget woes cause local worries
By Doug Grindle Community Reporter

Marlborough - A projected $1 billion budget deficit at the State House is causing Marlborough city councilors to worry that the state's budget woes may hurt the city.

This comes as the City Council begins work this month on creating the budget for fiscal year (FY) 2009, which starts July 1.

Councilors said they fear the state's problems could make it more difficult to balance the city budget because money from the state, which accounts for about one-sixth of the city's budget, may be in jeopardy. The state budget is expected to be out of balance by a figure that ranges between $1 billion and $1.5 billion, according to state officials.

"The statewide picture is not really as optimistic as our city picture," At-Large Councilor Patricia Pope said.

She noted that the city has cash on hand and has a good financial outlook.

"We're financially sound in the city but not so much on the state level," she said.

At-Large Councilor Michael Ossing, who chairs the Finance Sub-committee, said there is a real possibility of tightening revenues and the city should restrain spending.

"There's a potential for reduced state aid," Ossing said. "We can't go spending frivolously."

Councilors also said a downturn in the U.S. and state economies could hurt some of the revenue the city generates for itself.

Comptroller Tom Abel said the city gets its revenue from three sources: property taxes, fees such as building permit fees and hotel taxes, and state aid. State aid totaled about $18.9 million last year, 16.5 percent of the total city budget of $115 million, Abel said.

But state lawmakers said even with the looming budget crisis at the State House, the state assistance to cities and towns is one of the highest priorities for state lawmakers.

"I am very concerned about it, but at this point I have assurances from leadership and fellow senators that every commitment will be met," said State Sen. Pamela P. Resor, D-Acton.

Resor noted that the budget process is just beginning at the state level and nothing will be decided for months. Gov. Deval Patrick is due to submit his budget later this month. That will be followed by proposed budgets from the House of Representatives in April and the State Senate in May, Resor said.

Resor said that besides dealing with a slowing economy, the state budget may be further squeezed by lower-thanexpected revenues from the state Lottery.

State Rep. Stephen P. LeDuc, D-Marlborough, agreed the state economic situation is difficult.

"The economy is softening and revenues are being stretched in terms of the revenues we are receiving at the state level," LeDuc said.

But, he added, he expects state aid to towns to be protected.

"Our track record is to bring back as much local aid to the cities and towns as possible," LeDuc said.

The situation is complicated because the state is midway through a five-year plan that increases the amount of state money, called Chapter 70, paid to Marlborough. The increases bring Marlborough's assistance up to par with other cities and towns.

Both lawmakers said they expect Marlborough will receive all the money it is expecting, including that boost to Chapter 70 money.

"At the very worst, we commit to level funding," LeDuc said.

But lawmakers said even if state aid does arrive at the amount expected, Marlborough could be hurt in other ways by the problems at the State House.

"We obviously have to cut somewhere and it's going to be tough choices," Resor said. "I am not sure we can keep some of the programs we have that cities and towns take advantage of, which may be cut."

Resor said the city officials should spend as carefully as possible while the state sets its budget in coming months.

"If there are areas where they can save some money, rainy-day-fund-type things, then that would make sense," Resor said.

Mayor Nancy Stevens said that even with the difficult financial situation at the state level and possible pressures from a worsening economy, she has confidence the council and administration will create a budget that balances essential services with expected revenues.

"I am cautiously optimistic," she said.