The Governor’s 2009 9-c cuts detailed

Governor Deval Patrick yesterday detailed his 9-c cuts by community, as well as producing a plan to balance the FY2009 state budget. The cuts were not good news for cities and towns in the Merrimack Valley. Methuen’s mid year cut totals $659,419. Let us list some of those mid year cuts by other communities in the Merrimack Valley.

Andover $216,709
Amesbury $235,940
Dracut $424,928
Lawrence $2,381,288
North Andover $248,548
Newburyport $309,316
Lowell $3,054,791
Salisbury $76,631
Haverhill $1,191,978

These mid year cuts will lead to layoffs and a diminished capacity to provide core municipal services. Coming mid-year only amplifies the impact that these cuts will have. The Governor cut $128 million in local aid, as well as an additional $63 million in state budget cuts. He will dip into the State rainy day fund for an additional $327 million, rely on local revenue enhancements for $68 million, and allocate $533 million in federal medicaid funds from the stimulus bill now winding its way through Congress. All told it appears to be $860 million in one time revenue. The Governor also announced his FY2010 budget, which received most of the press yesterday. I will post additional detail on that separately.

We are working to quickly devise our budget to meet the new, lowered allocation of state aid. We will have new local budget numbers out by next week for FY2009, and we are working on producing our FY2010 budget as well. While the short term fiscal outlook is bleak the opportunity to reform the way we do business in government is now upon us. We should seize this opportunity, and reform some of the practices that have brought such cynicism about government to the public.

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2 Responses to The Governor’s 2009 9-c cuts detailed

  1. Gerard Donahue says:

    Mayor Manzi:

    Hi. Do you forsee any Methuen Services be cut or curtailed or user fees being initiated as a result of the loss of $$$ to Methuen MA.

    At least Methuen does not deal with too much pork barrel spending.



  2. Jules Gordon says:

    Your Honor,

    A difficult burden has been placed on you by the state, and it’s not over yet. The Governor is counting on 533 million dollars from the stimulus(?) package that he does not have in hand.

    I know you will do your best not to hurt the citizens of Methuen, but the salad days are over. We may have to take our own trash to the dump. With jobs in jeopardy do to the economy the town must not balance the budget by raising real estate taxes. People would lose their homes more readily.

    In spite of the fiscal problems accommodation must be made for lonely elderly without family in the area.

    Now for the Democratspeak definition of the day; “revenue enhancement” means TAX.

    Now for a reality check: “We should seize this opportunity, and reform some of the practices that have brought such cynicism about government to the public.”

    We have been through this at least three times before (once it cost you a cup of coffee).

    Want to make a bet that nothing changes of any significance? How about a revenue enhanced Starbucks, if they are still here?

    An Observation:
    The city lives off the largess of the state.
    The state lives off the largess of the Federal Government.
    The Federal Government lives of the largess of its printing presses.

    Question: How do you see the future of the country by Obama’s second term?



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