Category Archives: Budgets

Report on the Massachusetts Municipal Association Annual Meeting

Annually I attend the Massachusetts Municipal Association’s annual meeting in January to get new ideas on how to make Medfield a better place.  These were my notes from that meeting this year.

Massachusetts Municipal Association 1/23/10 – 1/24/10

I always find my attendance at the Massachusetts Municipal Association’s annual meeting to be one of the most useful and productive things for me, as I learn about both what is going on at the state level and also how other towns are operating and what those towns are finding effective and productive.  Medfield faces most of the same issues and dilemmas as all the other 351 cities and towns in Massachusetts, so it is exceedingly helpful to find out what all the other selectmen in the state are doing to resolve their towns’ problems and which solutions have worked best.  I was sorry that I was the only member of our Medfield Board of Selectmen able to attend this year.

The following is my report to the Town of Medfield on the major points that I picked up at this year’s meeting:

1.    State Finances

a.    DOR Commissioner and Governor’s budget director reported:
i.    FY10 budget was balanced only after many interim year reductions, plus the use of $1.9 billion of federal stimulus monies and $1.7 billion of the state’s $2.3 billion rainy day fund
ii.    FY11 budget will have available at best only half that amount of federal stimulus money and there is now less than $600 million remaining in the state rainy day fund.  For the past several months, state revenues have exceeded expectations, however, there is still a $3 billion gap in the state budget for FY11 that needs to be filled.
iii.    The governor announced on Thursday his intention in his FY11 budget to hold state support for education and local aid harmless, by level funding them at last year’s levels.
iv.    The governor will announce this coming Wednesday his complete budget, and tell us how he plans to solve that $3 billion gap in te FY11 budget.

b.    House Ways and Means Committee Chair, Charles Murray, seemed to minimize the governor’s involvement in the budget process, when he stated that the budget would be done by the House Ways and Means Committee with the approval of the speaker, the Senate produces its own version of the budget, that there would be a reconciliation between the Senate and House versions, and that the governor would then be to veto whatever sections he chose.  In commenting on the governor’s intention to level fund state funding for education and local aid, Rep. Murray derisively stated “good luck.”  Murray indicated that with a $3 billion dollar gap in the FY11 budget, it is unlikely that the state will be able to fully fund education and local aid at last year’s levels.

2.    Succession planning

a.    Mentor and train successors

b.    Plan for backup and depth at each employee position

c.    Create a personal improvement program for each employee, as is ordinarily done in the private sector.

d.    Share employees with adjoining towns.

3.    Regionalization of municipal services

a.    Lieut. Gov., Tim Murray, encouraged Selectmen to engage in greater regionalization by sharing similar services with surrounding towns. He pointed out that Maryland has a similar population to Massachusetts and yet Maryland has only about 25 emergency call centers for police and fire compared to about 250 in Massachusetts. He also suggested that Massachusetts does not need a board of health in each town.

b.    Jeff Nutting, Franklin’s town administrator, recommended that towns share pieces of DPW equipment with one another, especially given the high price of that equipment.

4.    Attitudes towards government – http://www.demos.org

a.    Demos studies people’s attitudes towards government
i.    Demos asked individuals “what do you think of the government?”  People responded by shaking their heads and rolling their eyes.  People tend to think of government as a collection of bickering individuals and as an entity that just takes their money endlessly
ii.    However, when those same people are asked “what do you think of the public services?” or  “what do you think of the public systems?” people are uniformly positive. People actually really like and rely on the government services that they use, such as the schools, the library, the parks, and the transfer station, and will acknowledge that fact when asked specifically about each.
iii.    Demos found that people did not want to pay taxes and often looked at the town government as a vending machine, wanting only to pay for those services they actually used. Demos, however, suggests that towns both emphasize that towns are a shared enterprise (similar to living in a condominium) and make the process transparent.  They gave the example of one town which succeeded by allowing resident participation in meetings via telephone hook ups and allowed residents to express opinions via survey responses.  In that same vane, a Bedford selectman recounted how often and how proudly Bedford residents have voted to spend their Community Preservation Act funds for new projects in town.

5.    Review of the town administrator

a.    Only employee reviewed by the Board of Selectmen

b.    Annual review resommended

c.    Recommend a five point span of choices on which to rate administrator

d.    Question of what parts to make public.

e.    Options
i.    Direct review by selectmen
ii.    360 reviews, where many constituencies are asked to participate.
(1)    Done on-line with each question having a five point range, plus an  opportunity for comments

6.    Medfield State Hospital

a.    Danvers State Hospital
i.    Danvers town administrator for past 31 years consulted re Danvers State Hospital project
ii.    Done by Avalon Bay – town was very happy with them and with results
iii.    Over 500 units of rental and age restricted condominiums
iv.    They only have 50 school children in whole project

b.    Rutland State Hospital
i.    Selectman consulted
ii.    Created a business center and park
iii.    They have been very pleased with results of their state hospital project
iv.    Still not completed

7.    Massachusetts DEP – on Pay as You Throw and Single Stream Recycling

a.    Based on experience of other towns, DEP says to expect to see a 30-50% decline in trash volumes if Pay As You Throw is adopted

b.    Expect single stream recycling to reduce trash volumes by 10%

Mass. Municipal Assoc. Annual Meeting

I attended the annual meeting of the Massachusetts Municipal Association on 1/22 and 1/23/10, and I have uploaded my notes of what I found pertinent and useful for Medfield at that conference –   https://medfield02052.blog/wp-content/uploads/2010/01/20100124-massachusetts-municipal-association-annual-meeting-notes.pdf

Medfield Budget Cycle Begun for FY11

The Town of Medfield has begun it yearly preparation of the budget for the town, which will be presented to the annual town meeting on the last Monday in April.  Mike Sullivan puts all the current assumptions and figures into a spreadsheet (copy attached), which is then updated as the process proceeds.  Attached is Mike’s first iteration of his spreadsheet for the FY11 budget.  This year the guiding premise is that no department’s budget should be higher than last year.

20091209-Tax Levy FY11 estimate

Additional State 9C Budget Cuts to Medfield This Year

The Massachusetts Municipal Association today sent to me, as your Medfield selectman, the Action Alert below today, because municipal assistance monies Medfield receives from the Commonwealth of Massachusetts are at risk of soon being cut yet again, because the state did not meet revenue estimates for the first quarter of FY10, which ended 9/30/09. The Massachusetts Municipal Association suggests that we ask our legislators to legislate for Medfield on the following issues in order to assist Medfield and the other towns:

HEALTH INSURANCE PLAN DESIGN POWER

CLOSE THE TELECOM EQUIPMENT LOOPHOLE

STOP THE QUINN BILL UNFUNDED MANDATE

PASS PENSION FUNDING RELIEF

Details on each appear below.
==============================
September Revenues

MMA Action Alert10/5/09
Contact: Tom Philbin 617-426-7272 ext.
121Massachusetts Municipal Association

September State Tax Revenues Plummet Below Benchmark
Gov. Prepares Mid-Year Cuts, Says Local Aid “On the Table”
Revenues $243M Below Sept. Benchmark, Off $212M for Year
Call Your Legislators Today to Rally for Municipal Relief Items

As feared, September state tax revenues fell far below the monthly benchmark needed to keep the state budget in balance, throwing Massachusetts state government sharply into the red at the end of the first quarter of fiscal 2010 and setting the stage for mid-year budget cuts just a few months into the fiscal year.

Monthly tax collections for September were $243 million below the benchmark.  Most of the loss was due to lower corporate and business tax collections ($144 million below the benchmark), sagging income tax revenue ($58 million below the benchmark), and lower than expected sales tax collections ($37 million below the benchmark).  For fiscal 2010 so far, tax collections are falling $212 million short of the benchmark.

The House and Senate Ways and Means Committee Chairs have both publicly stated that the September revenue figures were worse than their worst-case scenario projections.  Both said that the revenue shortfall is an alarming signal that the fiscal crisis has not ended.

Under state law, the Governor has until October 15 to revise the fiscal 2010 revenue projections and then develop a plan to close the shortfall, which looks to be at least $500 million or more, since the first quarter losses amount to $212 million.

The Governor announced that he would consult with economic advisors over the next two weeks to revise the fiscal 2010 tax forecast based on the revenue numbers through the end of September and the most recent economic data. He said he would announce his plan to close the budget shortfall shortly after the new forecast is adopted.

Once the revenue estimate is officially lowered, the Governor will be forced to use his so-called Section 9C budget-cutting authority to reduce executive branch agency spending, triggering more state layoffs and program reductions.

In response to questions from reporters, the governor said, “Local aid is on the table because it is unavoidable.”  The Governor cannot reduce the major general municipal aid account (the combined Lottery and Additional Assistance amount) and Chapter 70 education aid unless the Legislature grants him expanded 9C powers, as was done last year.  However, the Administration has the ability to reduce many other local aid programs, including reimbursement accounts and grants.  If the Governor renews his call for expanded 9C powers, the Legislature will likely once again provide him with that authority, as such a request has never been denied.

PLEASE CALL YOUR LEGISLATORS TODAY and ask them to protect municipal aid.  Cities and towns have been severely harmed by the deep local aid cuts implemented since the beginning of the fiscal crisis.  The fiscal 2010 state budget slashed total local aid by $700 million below the original fiscal 2009 budget, the largest local aid cut in history.  Communities in every corner of Massachusetts have implemented layoffs, deep cuts in services, relied even more on property taxes and, now, are adopting local option tax increases. It is crucial for your legislators to know how any mid-year cuts would throw your budget out of balance and cause even more widespread disruption and pain.

PLEASE CALL THE GOVERNOR’S OFFICE (617-725-4000) to explain that another round of mid-year local aid cuts would force unacceptable pain onto cities and towns.

PUSH THE LEGISLATURE AND THE GOVERNOR TO PASS KEY MUNICIPAL REFORMS NOW.  This is the time for state leaders to provide major municipal relief items.  Ask your Representatives, Senators and the Governor to immediately support and pass the following priorities:

HEALTH INSURANCE PLAN DESIGN POWER: Pass the MMA’s plan to give cities and towns the power to update municipal health insurance plans outside of collective bargaining, which is what state government does, and would save tens of millions of dollars statewide;

CLOSE THE TELECOM EQUIPMENT LOOPHOLE: End the telecom property tax loophole on equipment, which would generate $25 million locally (the state ended the loophole on poles and wires last summer);

STOP THE QUINN BILL UNFUNDED MANDATE: Fix the Quinn Bill mess by passing legislation to clarify that cities and towns are NOT responsible for paying the state’s share of the police career incentive program – police unions are in court trying to force cities and towns to make up the $48 million that the state cut from its share, which would represent an outrageous new unfunded mandate on municipalities; and

PASS PENSION FUNDING RELIEF: Pass legislation allowing cities and towns to extend their pension funding schedules by 10 years, to 2040, to protect local taxpayers from unnecessarily high assessments during this time of fiscal crisis – unless the funding schedules are extended, market losses due to the recession will trigger steep increases in annual pension payments and force budget cuts to key municipal and school services.

The MMA will keep you updated and fully informed of all developments.  If you have any questions, please do not hesitate to contact MMA Legislative Director David Baier (at dbaier@mma.org or 617-426-7272 ext. 120) or MMA Deputy Legislative Director John Robertson (at jrobertson@mma.org or 617-426-7272 ext. 122) at any time.

Medfield has $360,000 more in free cash than expected. 10/19 Special Town Meeting choices seen easier. See more at http://wp.me/pwOp1-1e

Medfield has $360,000 more than expected.

Mike Sullivan email today alerts the Board of Selectmen that town accountant, Joy Ricciuto’s rushed work on FY09 figures determined that the Town of Medfield had about $360,000 more than expected in free cash.
==========================
10/01/2009 2:39PM
Free Cash Certification
Sullivan, Michael J.
“Michael Sullivan”
++++++++++++++++++++++
2009 free cash certification is attached, Joy rushed her request so we would have free cash to appropriate at the October special. Somehow, she managed to come up with an increase in free cash, which will make it a lot easier. I was expecting a decrease of about $200,000 and she ended up with an increase of about $160,000. Last year’s free cash (July, 2008) was $1,393,769. This new free cash certification is $1,556,547. This should make it easier to use $200,000 or $300,000 in additional free cash at the October special to cover us in the event that the state makes additional 9C local aid cuts for fy10. I’m hoping we’ll have the full month September revenues available for Tuesday’s meeting with our state representatives. Mike