fiscal crisis

Penny Wise and Pound Foolish Leads to Big Whoops! in Framingham.

 

 
 Framingham CFO seeks budget improvements after finding $1.5m gap
 
Framingham's Chief Financial Officer said she wants to make improvements in the way the town manages its money to avoid future budget surprises, like the $1.5 million shortfall discovered by town finance officials on the eve of this fall’s Special Town Meeting. The $1.5 million is a payment on a loan that must made in the current fiscal year, 2012, but which officials originally thought they could spread over multiple years.
 
CFO Mary Ellen Kelley said the calculating error occurred because the town's three financial officers are overworked and must use outdated accounting technology. She also said the town currently lacks the flexibility to deal with loan payments when it needs to borrow more than expected for capital projects moving faster than anticipated.
 

Fire House Study Committee recommends Easton keep three fire stations open

Closing necessary firehouses and cutting local programs and services important for our communities should not happen in our state due to a lack of resources. It is time to take leadership and change the discussion about how we plan to raise revenue to pay for the structures that we all care about:

The fire house study committee has decided, after three months of meetings, interviews and review, that the town is a safer place with all three of its fire stations open. “This committee recommends that the town should strive at all times to have three stations open in the best interests of our citizens,” the report said, adding, “We are a study committee and take no position on how to advise the town on resource allocation.” [Full Article: Enterprise News]

Tax increases don’t harm economies

In this Op-Ed, Ed Moscovitch shows us that the myths we continue to be told are false- that taxes work against stimulating the economy and increasing jobs - don't bear out when we look at the realities in Europe (UK and Greece) and in the US for the last several decades.  So why do we keep repeating the same, foolish fiscal policies?

How is this possible? Higher taxes make possible higher spending. While taxes per se may (or may not) discourage growth, government money well spent (on college education, on scientific research, on basic infrastructure) likely increases growth potential. That’s why President Eisenhower built the interstate highways and President Reagan supported big increases in basic research.  [Full Article: Boston Globe]

UPDATE!! Keep Your Eye on the Grape! Federal $$$ are coming to town.

Pay attention to the state policy process kids. Federal $$$ are coming to town in about 17 different buckets, and who decides where it goes?

I recommend a very straight and sharp analysis of the current situation from Massachusetts Liberal Blog that problably mirrors what is going on in all the other 49 states.

My advice to worried advocates for the poor the elderly and the disabled and anybody else who is hoping the federal stimulus dollars will help restore programs that have been slashed by 9C cuts and the Governor's FY 10 budget proposal, was to quote César Chávez's advice to his workers during the grape boycott; "Keep your eye on the grape". He was warning his organizers not to get distracted by the glamour of boycott and keep their focus on organizing the workers picking the grapes.

Translated to advocacyspeak it means get yourself on record with our Congressional delegation during the debate, but keep talking about the impact of the 9C and the potential FY 10 budget cuts to the elected and appointed Massachusetts officials in the Administration and in the Legislature who will be deciding where the federal stimulus dollars go. 

All we need is transparency and accessability to the decision makers. Updates below the fold.

I have a passion for local government!

Melrose Mayor Robert J. Dolan is poised to be elected president of the Massachusetts Mayors' Association at the group's annual meeting Jan. 24. The association's nominating committee voted Dec. 10 to recommend him for the unpaid position.

The leadership post would give Dolan, 37, the chance to serve as a key voice on issues related to the financial crisis. It is a task Dolan looks forward to tackling, even in what promises to be a tumultuous year.

"I have a passion for local government," said Dolan, who is about to enter his eighth year as mayor. "I think local government affects people in the most direct way, and the most personal way."

He believes there is a chance to make a difference next year.

Update!! Insider Budget Briefing Wednesday, October 29th at 4:30 9C cuts

Question: What happens when state revenues start to decline?

Answer: 9C cuts.

Most of us know the FY 09 state budget is over $1 billion out of balance. Since our September Insider Budget Briefing on 9C cuts, Governor Deval Patrick has invoked his emergency fiscal powers under Section 9C of Chapter 29 to reduce allotments in certain line items in the just finished FY 09 state budget.

Prior to the announcement, a group of IBB participants gathered via conference call and in person to build a hopefully short-lived Campaign-With-No-Name (no, not another coalition) to work together to forestall or ameliorate 9C cuts that would threaten the hundreds of programs that keep our communities healthy and strong.

Now that the first round of 9C cuts have been announced, we will look at those and the possibility of additional cuts down the road.

Materials from the IBB can be found in Additional Information.

UPDATE

Having Nightmares About Your Budget? [http://www.fieldstonealliance.org]Next week's Insider Budget Briefing will highlight progress - and provide next steps - on the 9C cuts. Please join us NEXT WEDNESDAY, Wednesday, October 29th at 4:30pm in the 9th floor conference room at 30 Winter St to hear from experienced advocates such as:

 

We have had the benefit of the knowledge and experience of Noah Berger from the Mass Budget and Policy Center who helped us understand the broader context of 9C cuts and from Elaine O' Reilly from Governmental Strategies who shared her strategies for guiding her clients through the prospect and reality of 9C cuts in both 2001 and 2006. Materials from the IBB can be found in Additional Information below.

This campaign -with-no-name conference calls have included folks from the Administration led by Challotte Golar Richie, Senior Advisor for Federal, State and Community Affairs who has facilitated a round of meetings with key members of the Administration and the Governor to hear from various constituencies, including IBB participants, about the human impact of the proposed 9C cuts.

Wallace: "It's starting to get a little bit scary" Widmer: "The battle has just begun"

Matt Visor's good article in today's Globe tells the story. Everyone inside and outside the State House is paying strict attention to the the gap between FY 09 estimated revenues and estimated expenditures.

Rep Brain Wallace (D) from South Boston

"It's starting to get a little bit scary," said Representative Brian Wallace, a South Boston Democrat. "It's creeping in everyone's conversations about what we do from here. The numbers aren't adding up and the numbers aren't looking good. There's a lot of indecision."

Mike Widmer from the Mass Taxpayers Foundation - a business funded policy think tank.

"The battle has just begun," Widmer said. "I don't know when it officially becomes a crisis. But we're getting close to that, where it's not just adjustments but a full-blown crisis. . . . We're going to be on a wild roller coaster ride for a while."

Meanwhile the Executive Office of Administration and Finance is warning health and human service providers not to spend some of their hard won expansions because they may be taken away via the Governor's 9-C powers.

For an explantion of 9-C cuts from the Public Policy's Insider Budget Briefing see below. A small group of advocates for a wide variety of public programs from social services to public safty to public education, to health and human services are already talking about ways to avoid 9-C cut now and in the future. Those interested in learning more and participating in these discussion should email us at info@onemassachusetts.org

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