I have posted the 2008 budget submission online. This budget is an extremely difficult one, with all general government departments being forced to accept a de facto cut. I have allocated last years budget numbers to the departments, with no increase for the negotiated salary increases. The necessity for this is brought on by fixed cost increases, increases in education funding and transportation, with no corresponding increase in state (non-school) aid. I will talk about this in greater detail and post my budget message to the City Council in the next day or so. Link to the budget here.
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Bill Manzi.com 
Nice blog, good to see you connecting with your constituents and the net in general. Question about the budget: Why have the pensions more than doubled over the last few years?
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Thank you! Pension costs are rising for several reasons. Higher municpal salaries carry higher pension costs. The early retirement packages have boosted overall pension costs as well. Both pension and health care costs are leading municipalities towards a financial abyss. Governor Patrick has recognized the problems at the local level and has recommended that local “underperforming” pension systems be absorbed into the state system, which has consistently outperformed local systems. He has also recommended that localities be allowed to join the state health care system. I will post on those issues as well as the Municipal Patnership Act very soon.
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On 6/11/07, the Tribune reported that $1M free cash will be used to balance the FY08 budget. That’s understandable as ‘one time’ revenue generating events of years past become scarcer, However, I have three questions:
1, Isn’t that what free cash is for?
2. How much does that leave in reserve, and how does free cash replenish itself?
3. Pending any cuts during upcoming budget hearings, what is the FY08 budget impact on the taxpayer?
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Thanks Jim. In answer to your questions:
1) It certainly is a fair use of free cash. I do believe that it is not optimum in terms of budgeting. We know that next years budget will start one million short, and that is not a positive. However the City, with belt tightening, can maintain services without layoffs.
2) Free Cash replenishes itself by having additional revenues over expenses at the close of a fiscal cycle. (Either expenses were less than budgeted, or revenues higher). Our Free cash position at the close of this year is not yet known, but we can guess it will be about 1.5 million.
3) Until we get a better handle on new growth that will not be exact either, but we estimate a range of $85-$115. We will recommend a tax rate (classification) in the fall.
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