YT: Budget Blues

Franklin voters approve tax hike for $104.5m high school

Wed, 28 Mar 2012 14:22:05 GMT

Construction on a new $104.5 million Franklin High School is scheduled to begin in the fall after residents voted Tuesday to override Proposition 2 1/2 by a nearly four-to-one margin.

With nearly 50 percent of the towns voters going to the polls, 7,988 were in favor of the override for the towns $49 million share of the project, while 1,982 were opposed.

Owners of a home valued at $352,700, the average in town, will pay an additional $260 in taxes starting in 2017 and ending in 2040, according to Town Administrator Jeffrey D. Nutting.

The state will pick up the remaining cost of the new school, which should be completed within two years on land now used for baseball and softball fields next to the current facility.

Patrick signs law changing labor union role in health care plans for cities and towns

Tue, 12 Jul 2011 22:46:26 GMT

By Noah Bierman, Globe Staff

House Speaker Robert A. DeLeo said this morning that if someone had told him months ago that the states labor leaders would be celebrating a new state law with the business groups that had been trying to curb their rights, I would have said you were out of your mind.

But both groups were standing in the governors office this morning -- albeit on opposite sides of the room -- as Governor Deval Patrick signed into law a measure that will limit some rights of labor unions representing teachers, firefighters, and other local government workers to negotiate reductions in their health care benefits.

With political pressure to make the changes, organized labor had little choice but to try to squeeze out a few last-minute concessions from Beacon Hill. Those were apparently enough to lay aside their once vociferous opposition.

Its fashionable in politics today, Ive noticed, to bully people, Patrick, a Democrat, said during the signing, implicitly contrasting his approach with that of more confrontational Republican governors such as New Jerseys Chris Christie. You say more about how youre going to stick it to somebody. And that attracts all the attention.

In addition to DeLeo, the crowd at the bill signing included Mayor Thomas M. Menino of Boston, Senate President Therese Murray, Mayor Scott Lang of New Bedford, Robert J. Haynes, president of the AFL-CIO of Massachusetts, and Geoff Beckwith, the executive director of the Massachusetts Municipal Association.

No tax alternative: non profit offers to build senior center in Cohasset

Tue, 12 Jul 2011 02:27:38 GMT

In an unusual effort to address a need during tight times, a private nonprofit organization has volunteered to build a new multimillion-dollar senior center for Cohassets burgeoning population of baby boomers, who already make up about 30 percent of the oceanside community.

And because a private group can bypass bidding processes and prevailing-wage limitations required of municipalities, the facility will probably go up more quickly and cost far less money than previously anticipated by the town.

The Social Service League of Cohasset, founded in 1912 to help the needy in the area, had pledged $1 million a year ago toward a town-planned senior center, a project chronically mired in financial difficulty. Officials had been hesitant to propose a tax increase to cash-strapped property owners, and no other money source was in sight.

Although the leagues donation was generous, the town remained millions short of the projects cost, estimated at $5 million or more. Recently, the nonprofit approached town leaders with a plan to take over the building project. Funds would be raised through a vigorous capital campaign in partnership with the towns Friends of Elder Affairs. Once the building is complete, it would be leased to the town.

Read the rest of Christine Legere's Globe South story here.

Marblehead voters okay $43 million in property tax increases

Wed, 15 Jun 2011 03:58:50 GMT

By Steven Rosenberg, Globe Staff

Marblehead residents voted to override Proposition 2 1/2 today, endorsing proposals to borrow more than $43 million for building and town projects including the construction of a new Glover Elementary School.

The money will be paid back over a 20-year period. The tax impact for the first year will be $300 for owner of a median priced home in Marblehead. For years 2-20, the tax impact will be less than $250 a year.

In separate ballot questions, voters approved a proposal to borrow $18.2 million to reconstruct its Transfer Station, and also to spend $24.5 million to build a new elementary school. Voters also approved a proposal to spend $656,000 on studies to clean up the towns landfill. Voters turned down just one of the four ballot questions a proposal to borrow $666,793 to fund improvements to the Old Town House.

Last year, voters rejected a similar school building proposal by 71 votes. Today, voters endorsed the school proposal 3,394 2,752.

Im thrilled, said Marblehead School Committee Chairwoman EuRim Chun shortly after hearing the news outside of the Town Clerks office at Abbot Hall. Everyone came together and they were willing to make the investment in our future and it shows the confidence they have in the town.

As word spread through the building that three out of the four proposals had passed, Jean Eldridge looked on glumly and wondered how some residents would pay for the tax increases.

Im so disappointed, said Eldridge, who opposed the school and transfer station proposals.

There are so many people out of work, losing their homes, and there are a lot of people in town on a fixed income including myself. This makes me sick.

Governor Patrick grants 3-percent raise to 4,000 state managers

Sat, 11 Jun 2011 00:22:30 GMT

Governor Deval Patrick granted a 3 percent raise yesterday to 4,000 state managers beginning July 1, despite a budget that cuts higher education, local aid, and social services.

Patricks budget chief, Jay Gonzalez, sent a memo to Cabinet secretaries yesterday authorizing the raise, which will cost the state about $9.9 million and coincides with a salary increase for unionized employees. Managers have not had a pay raise since July 2007, a result of the fiscal crisis, and union members have seen only a 1 percent pay raise since that time.

While we acknowledge that our economy is not fully recovered, this wage adjustment is the right thing to do to help the Commonwealth retain and recruit a talented and competitive workforce that can continue to work hard for the people of Massachusetts, Patrick said in a statement that chronicled sacrifices by state employees during the recession, such as furlough days and high health care payments.

The governor and his staff will not get the raises, said a spokeswoman for Gonzalez, nor will the eight Cabinet secretaries.

The coming years budget, which also begins July 1, will be among the toughest in state history, as Patrick and lawmakers have been forced to address a $1.9 billion gap. Federal stimulus money that has propped up state programs during the depths of the economic downturn expires this year, forcing extensive cuts.

State college tuition and fees, for example, are set to increase 7.5 percent next semester, following a vote Wednesday by the University of Massachusetts board.

Read the rest of Noah Bierman's story here.

Breaking point? Some towns resist property tax hikes

Fri, 10 Jun 2011 12:32:36 GMT

Facing economic hardship and uncertain job prospects, voters north of Boston this year are rejecting pleas to approve property tax increases that would spare cuts in local services and support school spending.

The issue has divided voters in 23 of 57 Massachusetts communities north of Boston as local leaders struggle to craft balanced budgets for the upcoming fiscal year in the face of falling state aid and dwindling local receipts. Voters in eight communities Boxford, Essex, Georgetown, Groveland, Marblehead, Saugus, Topsfield, and Winchester had more than one request to consider.

Read Brenda J. Buote's story from Globe North here and her deeper look at some towns' opposition here.

Mass. tax collections up 43 percent in April

Wed, 04 May 2011 00:19:58 GMT

Associated Press

BOSTONMassachusetts revenue officials say a surprisingly large increase in tax collections from investment income helped fuel a 43 percent increase in April tax collections compared with a year ago.

The Department of Revenue said Tuesday the state collected $2.5 billion in taxes last month, $758 million more than in April 2010. Last month's total was also nearly $600 million above revised monthly benchmarks.

The state had expected increased April income tax payments due to the improving economy. Also, severe flooding delayed the April 2010 filing deadline until May in several counties.

Officials were not as quick to explain the hike in revenues from interest and dividends and capital gains. They say it appears many taxpayers chose to cash in some of their investments during 2010 and are now paying taxes on those gains.

House passes $30.5b budget that limits health care bargaining

Fri, 29 Apr 2011 13:41:22 GMT

After four days of deliberations that largely took place outside public view, the Massachusetts House yesterday threw bipartisan support behind a $30.5 billion budget that included no new taxes or fees and made deep cuts to programs across state government.

The budget passed 157 to 1 just before 6 p.m., with only Andover Republican James Lyons voting to reject it. It now heads to the Senate, which will consider its own budget proposal in May.

Representative Brian Dempsey, chairman of the House Ways and Means Committee, said the final budget checked in at $25 million to $30 million below Governor Deval Patricks $30.6 billion plan proposed in January.

In challenging times, we need to have the discipline to find a balance, Dempsey said, describing cuts to programs and a series of savings initiatives that helped close a budget gap as the state is exhausting billions of dollars in one-time federal economic stimulus law funds.

In his closing speech before passage of the budget, Dempsey heaped praise on Republican lawmakers for working closely with Democrats and, in the end, he won the vote of nearly all of the Houses 31 minority party members.

Read more of Kyle Cheney's State House News Service story here.

Georgetown considers not one, but two, overrides

Fri, 29 Apr 2011 13:37:50 GMT

Theres nothing like a roof collapsing to underscore the problem of deferred maintenance.

In the aftermath of the Feb. 3 collapse at the Perley Elementary School, which caused no injuries but precipitated an evacuation of all of Georgetowns school buildings, Superintendent Carol Jacobs noted that the incident might spark discussion about facilities and maintenance needs.

I dont know if people will say I want to pony up the money, but I absolutely think these types of things heighten peoples awareness, she said after the collapse.

Nearly three months later, residents will consider just that Monday as one of two Proposition 2 1/2 overrides on the annual Town Meeting warrant. Town officials are requesting $729,583 to fund a consolidated school/town maintenance department, while the School Department is seeking a $1.2 million override for its operating budget.

Were not happy with two overrides, Jacobs admitted recently. Why would we be happy with two overrides? Frankly, the town probably needs both. But the record in Georgetown has not been that people vote any override, never mind two to the tune of a $2 million increase in their taxes.

Read more of David Rattigan's Globe North story here.

Arlington override vote likely to take place June 7

Tue, 05 Apr 2011 16:14:11 GMT

By Brock Parker, Town Correspondent

Arlington selectmen Monday approved a tentative date of June 7 to hold a special election on one or more property tax override proposals that increases taxes by several hundred dollars per year on the average Arlington home.

But the board decided to wait another week before voting which override proposals will appear on the ballot.

Clarissa Rowe, the new chairwoman of the board, said two proposals suggested by the towns Long Term Planning Committee could be too expensive for voters.

I think the price was a bit too high, Rowe said.

Around the region, Millis residents will vote May 2 on whether to hike taxes by $1.1 million, and Belmont is considering an override as well, Globe West reported Sunday.

The Committee had suggested two options for an override, including one that would raise about $7.9 million in revenue by increasing property taxes by 9.1 percent. The tax hike would be about $560 per year on the average Arlington home valued at $479,000.

The second option would add about $5.9 million to town coffers with a property tax increase that would tack on about $425 more per year to the tax bill on the average home. It would also generate another $2 million in savings and revenue by switching the towns trash removal service to a pay-as-you-throw program, in which residents pay $1 or $2 for each bag of trash they throw out.

But Monday, Town Manager Brian Sullivan suggested the total tax increases under both override options could be reduced by subtracting funding for several programs, including $400,000 per year in road repair and an additional boost of $600,000 to the school departments budget.

After the reductions, Sullivan said the first override option would raise about $6.2 million, which would hike taxes by about $425 a year on the average home.
The reduced second option, would raise about $4.3 million in revenue, which would hike taxes by about $300 per year on the average home. It would also include the pay-as-you-throw trash program, Sullivan said.

But Selectman Kevin Greeley said having two override options on the ballot could be too confusing for voters.

I really think we want one question, he said.

Dan Dunn, who was elected to the board Saturday, said he also thinks posing two override options could be too confusing and he requested another week to work on what would appear on the ballot for the special election.

The board will meet again next Monday.

City, town health plans most costly, report says

Tue, 05 Apr 2011 16:09:58 GMT

Health insurance plans to cover city and town employees cost 37 percent more than similar plans for workers at private companies, mostly because municipal employees pay minimal copayments or deductibles when they get care, according to a new statewide survey.

The 20-page report from the Boston Foundation and Massachusetts Taxpayers Foundation concludes that cities and towns must substantially increase the amounts their employees are required to pay in out-of-pocket expenses for medical office visits and other services and to significantly increase their deductibles. Otherwise, municipalities will see insurance eat up an ever-increasing share of their budget.

The issue is cost-sharing, and right now the cost-sharing of municipal employees is minuscule, said Bob Carey, author of the report. Cost sharing must go up. Its way out of synch with the rest of the employer market.

Taking the reports advice would force tens of thousands of municipal employees statewide to pay hundreds or even thousands more annually for health care. The rising costs, in turn would probably influence those employees to choose less costly insurance plans and medical services and, in some cases, to forgo some services, the report says.

Read the rest of the story by the Globe's Sean P. Murphy.

Brace yourself: property tax bills rise, even as some home values fall

Mon, 28 Mar 2011 16:44:56 GMT

Although home prices have yet to recover from what has come to be known as the Great Recession, property tax bills in Bostons northern suburbs are on the rise as cities and towns struggle to maintain services residents have come to expect.

Across the state, property values tumbled an average of 8.1 percent per year between the onset of the recession in 2007 and July 2009, according to the Massachusetts Department of Revenue. Since property taxes are based on value, homeowners might assume that lower assessments would result in lower bills.

Opening their tax bills will end that hope in a heartbeat.

Click here to read the rest of Brenda J. Buote's Globe North story on tax bills.

Winchester voters consider property tax hike

Mon, 28 Mar 2011 16:43:02 GMT

Voters Tuesday will consider a proposed tax increase that Winchester officials say is needed to ease cuts to town services next year and avoid deeper cuts in fiscal 2013 and 2014.

The $1.44 million Proposition 2 1/2 override on the town election ballot would permanently raise the towns annual property tax cap to help fund general operating expenses in various town departments.

The override, backed by selectmen and the school and finance committees, would add $204 next fiscal year to the tax bill of an average single-family home valued at $757,000.

Town officials say the override is critical to Winchesters ability to keep its level of services largely intact at a time when the town, despite years of economizing, is seeing its costs rising faster than revenues.

Click here to read the rest of John Laidler's story in Globe North.

176 Massachusetts state retirees collect $100K pensions

Mon, 21 Mar 2011 17:25:21 GMT

The number of state retirees collecting pensions of at least $100,000 has climbed more than 20 percent in the past year, jumping from 145 to 176, with the top pensioner receiving more than $240,000.

State Police retirees represent the largest group of six-figure earners, with 50, followed by faculty and administrators from the University of Massachusetts Amherst at 42, and employees of the University of Massachusetts Medical School in Worcester, at 19.

Eight years ago, only 33 state employees made more than $100,000, but as state salaries have increased through the decades, so have pensions, which are calculated in part based on employees income in their three highest-paid years of work.

There is an urgent need for comprehensive pension reform, said Michael J. Widmer, president of the Massachusetts Taxpayers Foundation. Soaring pension and health care benefits are cannibalizing municipal services.

Read the rest of Matt Caroll's article here.

Duxbury voters to consider Proposition 2 1/2 votes March 26

Mon, 21 Mar 2011 17:19:21 GMT

Duxburys Annual Town Meeting has approved spending on three major building projects, including a new police station, an expanded fire station, and new high and middle schools estimated to run well over $100 million.

All three projects, however, require voters to pass Proposition 2 1/2 overrides at the March 26 town election that would allow the towns debt for the work to be excluded from the annual tax cap.

Total construction costs for the projects are expected to increase the annual tax bill for the median-value tax property $6,000 on a $481,100 property by almost $900, according to the towns fiscal advisory committee.

The $6.25 million plan to build a new police station is expected to add $85 to the median tax bill. The $3.7 million approved for an expanded fire station would add $58. Full construction costs for the school project will add an estimated $733.

Read more of Robert Knox's Globe South story here.