Budget cuts put pressure on Medford and Somerville

The cities of Medford and Somerville have been scrambling to close budget gaps in the wake of massive state funding cuts for the 2003 fiscal year. The cuts were made by Governor Mitt Romney as part of a comprehensive plan to close a $3 billion statewide deficit.

Both communities have begun plans to address the reductions. A Feb. 14 memo from Somerville Mayor Dorothy Kelly Gay outlined a plan that included the elimination of stipends for 25 positions -- a few of which were already vacant -- in order to deal with the cuts.

Somerville's state aid was reduced by $5 million for fiscal year 2003 -- more than any other city in Massachusetts, according to Director of Communications Bill Doncaster.

The City of Medford has also taken measures in order to deal with its monetary losses. A mid-year cut in state aid of $1.4 million was alleviated by an early retirement plan offered by the city.

The budget cuts for both cities have been particularly troublesome this year, due to the unusually heavy snowfall. One of the possibilities that cites can use for the snow removal is "free cash," which is a contingency fund built into budgets which cities can use to cover unexpected emergencies. Doncaster, however, said that this is usually reserved for catastrophes such as a school fires or accidents.

Somerville has been discussing with Tufts for Payments in Lieu of Taxes (PILOT). PILOT payments are made voluntarily by a tax-exempt organization to a municipality in exchange for the use of its services, according to the University.

Somerville's President of the Aldermen Sean O'Donovan told the Somerville Journal that the city received $25,000 last year from Tufts. Tufts officials confirmed the payment but said it was only for a past real estate transaction.

Tufts' payments pale with some other local institutions. Harvard gives Cambridge approximately $2 million in payments, and MIT about $1 million.

Tufts spokeswoman Barbara Rubel was quick to note that only the wealthiest institutions can make payments to communities. "Tufts does not [pay a PILOT] because we can't afford it and we don't feel we put a burden on the community."

Tufts has, however, made some "one-time deals" in support of community development, including donations for a community development office, playground renovation, and adding lights to a baseball field.

Both sides have said that there have been discussions between the president and the Somerville mayor, although neither was willing to comment on the exact nature of these talks. This issue has come up before, and Rubel said "we've engaged in discussion and explained what we can live with."

Medford is currently trying to find ways to make up its shortfall. The Medford Transcript reported that early retirement of 47 employees made up for almost half of the cut. The rest of the cut is being made up through purchasing freezes and fund shuffling. Despite this effort, popular services, such as a summer recreation program, had to be cut to close the gap.

Medford Mayor Michael McGlynn warned that additional services could be trimmed if Romney's upcoming plans for further cuts go through. With another round of cuts, Medford could face a $5 to $6.5 million dollar loss.

But Richard Leigh, an aid to the Medford mayor, believed the city's cost-cuttings measures have closed most of the budget gap after the first round of State cuts.

"The budget will be okay through June [end of fiscal year], the only caveat being snow and ice removal," Leigh said. The costs of cleaning up an unusually severe winter might leave the city with a deficit of $200,000 to $250,000.

Somerville is also having issues with snow removal due to the unusually heavy accumulation, Doncaster said. "We are already in the red for snow removal, however this is the only area where we are allowed to go over budget by law, it's a matter of public safety."

The final Somerville budget is scheduled to be finished this week. Medford's, however, will not be available until the end of June. Leigh describes the process as "very time consuming." "Medford has never had to do something like this before. It's going to be a difficult year," he said.

Romney made almost $343 million in immediate budget cuts earlier this month. The majority of this was made up of local aid, $114 million, meaning cities and towns around Massachusetts are facing similar problems to Medford and Somerville.