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Somerville financial committee reconvenes to evaluate effects of state budget cuts

Somerville Mayor Joseph Curtatone decided to reconvene the five-person Financial Advisory Committee (FAC) last month in hopes of addressing the effects of state budget cuts and the continuing economic downturn.

Curtatone created the FAC in January to address severe revenue shortfalls that emerged as the economy fell into recession. The committee searched for methods to add revenue and reduce expenditures in Somerville for its Fiscal Year (FY) 2010 budget, according to City of Somerville spokesperson Tom Champion.

The FAC released a report in May that recommended ways to withstand the hurting economy. The body then disbanded. In June, the Massachusetts legislature passed the state FY 2010 budget which included a 22 percent reduction in state funding for Somerville. The reconvened FAC will make recommendations on how to cope with this reduction while attempting to keep Somerville"s services as abundant as possible.

"The committee wanted to save money without impacting core city services," Champion said of the FAC"s first report. "Where many cities around the country have to reduce public services such as police, Somerville is trying to keep public services intact."

All five members of the committee, including Tufts Professor of Economics Daniel Richards, agreed to resume their positions when the mayor announced his intention to reconvene the body.

In FY 2009, Somerville required $165 million to serve a community of approximately 78,000, according to Champion. Somerville"s Board of Aldermen in June voted to reduce the FY 2010 budget by approximately $5 million, reportedly the largest cut in recent history.

The committee will address which changes worked this year and which the city should implement in the future in light of the uncertain financial situation.

"The FAC is where we turn to seek advice as to areas where funds can be used more wisely," Champion said.

The FAC used a public opinion survey to determine what programs and areas require the most attention. Officials emailed the survey to families and business on the Somerville e-mail list. Yielding 126 responses, the results offered a measure of what services Somerville residents deemed most important to retain.

"The results provide insight into the political temperament of Somerville," Richards said. "Mayor Curtatone and his staff are very careful to monitor how effectively they meet the public"s needs and to analyze what people care about."

Somerville resident Marques Sinkler, who responded to the survey, said that city officials should prioritize education in the budget.

"Somerville values education for their children, and we understand that a few less festivals can mean better educational opportunities," Sinkler told the Daily.

He was encouraged by the opportunity to be involved in the FAC"s recommendations through the survey. "It is my civil duty to include myself. I cannot complain if I did not first make myself heard," Sinkler said.

Sinkler"s opinion was in line with most Somerville residents who responded to the questionnaire. Nearly three-quarters of reporting residents suggested that Somerville spend less on special events, and the majority requested greater funding for schools and education.

Respondents also suggested joint efforts between area universities like Tufts, Harvard and the Massachusetts Institute of Technology to encourage students to participate in community service efforts.

"The students live here. Their parents work here. Tufts students especially, given their proximity, should donate time to Somerville," Somerville resident Diane McCosland told the Daily.

The FAC aimed to spread the budget dip evenly across the spectrum, with no area bearing a disproportionate impact, as opposed to eliminating specific programs entirely, Champion said. Even so, layoffs were factored into the new budget, though Champion did not have precise figures.

The elimination of superfluous positions freed hundreds of thousands of dollars in city funds "without sacrificing quality and service," according to Champion.

Nevertheless, several community initiatives have come under scrutiny as Somerville struggles to fund programs without heavy dependence on the ever-shifting state budget.

Somerville"s health care system was one such initiative. Of the $5 million cut from Somerville"s budget, approximately $2 million came from its program to pay for a considerable portion of health care premiums for retired, non-union residents. To fill the gap, the city is now asking non-union residents to pay 25 percent of their insurance cost instead of the 10 percent they paid in past years, according to Champion.

The city is prepared to offer a specialized insurance plan to those who are unable to pay for the new plan"s financial requirements, Champion said.

"We have taken every precaution to see that everyone has access to health care in Somerville," he said.