CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

CLT UPDATE
Thursday, April 28, 2005

The Boston Globe's bankrupt integrity, and other treacheries


The House was opening its annual budget debate, and the first item of business was an attempt by Republicans to cut the income tax. The arguments were familiar: In 1989 legislators raised taxes temporarily -- many saying they expected that the rate would revert to 5 percent -- and voters in 2000 endorsed a ballot question mandating that figure. Fortunately, a solid majority has shuffled this bad idea off to a study commission.

Both arguments from the past are unconvincing today....

The 5 percent figure has an almost mystical power on Beacon Hill. When the Legislature froze the rate at 5.3 percent in 2002, the 5 percent figure was so alluring that legislators included a provision that would lower the rate to that figure by 2014 if revenues grew strongly. And this week, legislators declined an opportunity to reject outright the immediate cut to 5 percent and instead voted for the study proposed by Representative John J. Binienda, a Worcester Democrat.

In the Legislature, studies are usually a polite form of burial ...

A Boston Globe editorial
Thursday, April 28, 2005
Fixated on 5 percent


The Massachusetts House of Representatives this week arrogantly nullified the people’s right to initiative petition — not once but twice in the same day.

On a Democratic party-line vote, 135-21, the House rejected a budget amendment to roll back the state income tax rate from 5.3 percent to 5 percent, the rate that prevailed before lawmakers in 1989 voted an emergency increase that hiked the rate by 20 percent.

It is the latest in a series of setbacks for taxpayers. In 2000, after a decade of legislative foot-dragging, frustrated voters passed a ballot measure mandating a rollback to the original rate, by a 3-to-2 margin. The initiative, calling for a return to 5 percent over three years, was intended to force the Legislature to keep its promise that the income tax rate increase would be temporary. Lawmakers began to comply, but they froze the rate at 5.3 percent when the state’s economy soured in 2002....

Adding insult to injury, lawmakers also rebuffed the voters’ wishes to make charitable contributions tax-deductible. The initiative, also on the 2000 ballot, had won by a landslide 3-to-1 margin....

As the party-line vote on the tax measures dramatized, legislative nullification of initiatives is, in part, a toxic byproduct to the overwhelming one-party dominance on Beacon Hill. Last fall’s elections, which boosted the Democrats’ majority, only aggravated the partisan imbalance.

Voters complain about the anti-constituent antics of the Legislature. Unless they are willing to turn out incumbents who repeatedly thwart the will of the people, shameful nullification votes such those in the House this week will remain business as usual.

A Telegram & Gazette editorial
Thursday, April 28, 2005
Nullified again (twice)
House continues to stifle the people’s voice


Governor Mitt Romney's administration announced yesterday that it has reached labor agreements with 32,000 of the 39,000 workers in the executive branch, with the governor's top budget aide boasting that he broke with tradition by giving the employees modest salary hikes that will not exceed the expected growth in state tax revenue.

Romney's budget chief Eric A. Kriss said the raises, which average less than 2 percent annually when spread over the time since the previous deals expired, will help the state avoid layoffs if the economy deteriorates....

Grunko said the union will express its frustration by flexing its political muscle in the 2006 governor's race....

Kriss has often played the role of Romney's heavy in the administration's frequent clashes with unions. In speeches, he has repeatedly decried organized labor's "monopoly" on state and municipal employment in Massachusetts, saying it creates a drag on city and state budgets. Romney and Kriss have urged local officials to follow their lead and take a harder line with public employees.

"The local level is where there are more serious problems," Kriss said yesterday.

The Boston Globe
Thursday, April 28, 2005
State, unions reach agreements
Romney aide cites modest pay pacts


The effervescence of spring has arrived. While daffodils are absorbing the sunshine and potholes are attacking suspension systems, public employees, i.e., teachers and firefighters, are attempting to assault taxpayer wallets, once again. Public-employee mentality has reached an apex at which more is never enough and "wants" have drastically overridden "needs." In Spencer, two Proposition 2½ override questions will be on the May 2 ballot to fund insatiable and unquenchable employee appetites for bigger and better salaries and benefits packages....

In the words of Chip Ford from Citizens for Limited Taxation, "Override provisions are intended for municipal emergencies only. They were never intended to fund bloated operating budgets and overly generous employee pay raises and benefits for which they are being abused today.... The biggest municipal emergency we have today is how to choke off the overspending. The solution is not higher taxes."

The Telegram & Gazette
Monday, April 25, 2005
Public employees launch raid on taxpayers’ wallets again
By Jennifer Gaucher / As I See It


Worcester school officials say a $4.5 million budget deficit, the result of rising operating costs and shrinking revenue from the state, forced them to send layoff notices to 73 teachers and eliminate an additional 22 teaching positions by not replacing retiring teachers. Absent an increase in state education funding this year, even more teachers could lose their jobs.

Overall, the department’s operating costs are expected to increase by $10.2 million, about twice as much as new revenues. Topping the increases are health insurance costs, which will increase by about $3 million for school employees this year....

Worcester employees now contribute as little as 10 percent of health insurance costs, with the city paying a 90 percent share of employee health insurance costs, significantly more generous than the benefit received by most public- and private-sector employees.

A 75/25 split in contributions would yield savings of about $5 million in the school department alone....

Incredibly, Louis J. Cornacchioli, EAW executive secretary, has proposed raising taxes via a Proposition 2½ override, pointing out that the city legally could raise taxes by $12 million. Can he seriously believe that Worcester property owners, who have seen their tax bills and municipal fees rise sharply in recent years, are undertaxed? ...

The EAW leaders consistently have turned thumbs down on proposals that might have prevented most or all of the layoffs. Faced with the choice of concessions or layoffs, they repeatedly have opted for layoffs.

A Telegram & Gazette editorial
Monday, April 25, 2005
School squeeze
EAW renews perennial push for tax increase


The state's crackdown regarding reimbursements to cities and towns for school-building projects is long overdue and this week's slap at 14 communities is likely only the beginning....

School officials often complain that residents don't understand their plight and are skeptical of their financial requests. Well, the results of the recent financial audits conducted by the state Department of Education revealed why residents have those feelings. Because school departments sometimes make unnecessary purchases....

The audits should serve as a warning to all communities that buying unnecessary items at the state's expense must stop. We hope it's a lesson learned quickly because, if not, local taxpayers will end up paying the extra bills.

A Lowell Sun editorial
Tuesday, April 26, 2005
Clamping down on costs


Nearly six months after [Franklin] voters shot down an override, those who voted for and against the tax-raising ballot question have mixed views on the current budget situation.

Many believe the fiscal 2006 budget is not as dire as officials predicted in the fall and are glad the $3.9 million Proposition 2½ override failed in November....

"Many of the taxpayers who fought for the override feel misled about the town's financial situation. We don't know if that was purposeful or not," said Ed Cafasso, chairman of the former pro-override group Franklin Cares. He later added, "The town seems to have a lot more financial flexibility than predicted a year ago." ...

"The predictions of severe budget cuts seem to have been premature," said Cafasso, who was appointed to the School Committee after the override vote.

Frank Cummings, a former councilor who opposed the override, said he thinks officials cried wolf last year....

Looking back, Cummings, Findlen and Theresa Shea, former head of the loosely organized anti-override group Franklin Taxpayer Objects, said they still do not believe an override was needed....

Cafasso said he and others who fought for the override are "now wondering why that very same plan couldn't have been proposed a year ago." ...

"Until every spare penny of change is used and something happens that puts us in such a perilous situation where people think we need an override, I don't think another one will pass," Trahan said.

Many said the trust between town officials and residents must first be rebuilt. "They are going to have to wait a long time and really have some good facts," Findlen said.

The MetroWest Daily News
Sunday, April 24, 2005
Franklin budget viewed in new light


Chip Ford's CLT Commentary

What a stark contrast between the integrity (the utter void of it) of the Boston Globe, and the Worcester Telegram & Gazette's with its respect for democracy, the voters, and their decisions.

How often have we heard the liberal mantra regurgitated by the Globe that "Every vote must count!"? Why bother counting them, if after they're totaled Democrats -- and the Boston Globe -- simply defy the results they don't like?

The liberal mantra should be revised to "Every vote must count -- if we agree with the outcome!

*                    *                    *

Have you noticed that more and more citizens are awakening to the avarice of public employee unions -- especially the teachers unions' insatiable greed? Steadily, the number of aware citizens across the commonwealth, across the nation in fact, is growing. Taxpayers are recognizing that inevitable tax increases are required to keep satisfying the public employee unions, temporarily. More Is Never Enough -- or else, is beginning to wear thin among an expanding population who are paying the bill.

As more citizens feel themselves squeezed between the proper role of government -- public safety, public works, etc. -- and the endless demands of the Education-Industrial Complex, squeezed between hanging onto their family homestead or handing teachers and other "public servants" more, more, more every year, the immutable survival instinct is kicking in. We are quickly approaching critical mass -- fight or flee.

The unions' narrow self-interest and shortsighted greed have reduced this situation to survival of the fittest. At some point soon the taxpayers' spigot must be shut off or run dry. Taxpayers eventually won't be unable to afford paying any more, and that day of reckoning is not far off. The unions will have it all and we'll be working full- instead of part-time for the "public servants."

*                    *                    *

It also greatly helps when taxpaying voters become aware of another scam, when a "The Sky Is Falling" routine is exposed as just "Crying Wolf."  It's especially useful for overburdened taxpayers when a proponent of Proposition 2½ overrides, a tax-and-spend leader like Ed Cafasso of Franklin,  feels abused, betrayed, and speaks out.

We suffered a similar but worse betrayal in Marblehead a couple of years back. An override was passed allegedly because of a threat that state local aid was about to be cut. When the additional state aid nonetheless arrived, town officials decided to keep the override's tax increase too! We're hoping abused Marblehead taxpayers won't forget that bitter lesson in treachery when the next override is served up to us in the coming months.

Chip Ford


The Boston Globe
Thursday, April 28, 2005

A Boston Globe editorial
Fixated on 5 percent


The House was opening its annual budget debate, and the first item of business was an attempt by Republicans to cut the income tax. The arguments were familiar: In 1989 legislators raised taxes temporarily -- many saying they expected that the rate would revert to 5 percent -- and voters in 2000 endorsed a ballot question mandating that figure. Fortunately, a solid majority has shuffled this bad idea off to a study commission.

Both arguments from the past are unconvincing today. In 2000, voters acted under the misapprehension that the revenue boom of the late 1990s would last. Supporters of the cut promised that services would not be reduced, but they were, deeply, once the boom ended. Since 1993, state government has made a commitment to offer a quality education to every child in Massachusetts, an initiative that was not a factor in 1989. Even at the current income tax rate of 5.3 percent, revenues are not sufficient.

A cut to 5 percent would reduce state revenues by about $590 million a year. That would be equivalent to a 16 percent reduction in the K-12 education allotment being considered by the House this week, or a 64 percent cut in the higher education budget, or a 50 percent reduction in unrestricted local aid, or a 46 percent reduction in public safety spending, or a 95 percent cut in the Department of Mental Health budget, or the elimination of the Department of Public Health. Which of these reductions would supporters of the tax cut like to put their names to first?

The 5 percent figure has an almost mystical power on Beacon Hill. When the Legislature froze the rate at 5.3 percent in 2002, the 5 percent figure was so alluring that legislators included a provision that would lower the rate to that figure by 2014 if revenues grew strongly. And this week, legislators declined an opportunity to reject outright the immediate cut to 5 percent and instead voted for the study proposed by Representative John J. Binienda, a Worcester Democrat.

In the Legislature, studies are usually a polite form of burial, but Binienda insisted over the telephone this week that "I want to know exactly where the cuts would be." Binienda wants the Revenue Department to conduct the study, but it is not the job of this tax-collecting agency to outline budget cuts. Republicans in the Legislature ought to present their own list.

Even as he spoke for the tax cut, Representative George N. Peterson Jr. of Grafton said he and other Republicans wanted to increase local aid. The Democratic majority in the Legislature ought to challenge this inconsistency and present its own plan to provide the revenue necessary for education and the other essential programs of state government.

Return to top


The Telegram & Gazette
Thursday, April 28, 2005

A Telegram & Gazette editorial
Nullified again (twice)
House continues to stifle the people’s voice


The Massachusetts House of Representatives this week arrogantly nullified the people’s right to initiative petition — not once but twice in the same day.

On a Democratic party-line vote, 135-21, the House rejected a budget amendment to roll back the state income tax rate from 5.3 percent to 5 percent, the rate that prevailed before lawmakers in 1989 voted an emergency increase that hiked the rate by 20 percent.

It is the latest in a series of setbacks for taxpayers. In 2000, after a decade of legislative foot-dragging, frustrated voters passed a ballot measure mandating a rollback to the original rate, by a 3-to-2 margin. The initiative, calling for a return to 5 percent over three years, was intended to force the Legislature to keep its promise that the income tax rate increase would be temporary. Lawmakers began to comply, but they froze the rate at 5.3 percent when the state’s economy soured in 2002.

That the House rejected the notion of raising the tax rate to 5.95 percent — floated by one of its big spenders during Monday’s debate — is cold comfort, at best.

Opponents of the rollback pointed out that it would reduce state revenue by more than $200 million in the first year, a noticeable sum even in the context of a $24 billion state spending program. But as Rep. Lewis G. Evangelidis, R-Holden, aptly noted, the money belongs to the taxpayers, not to state officials. "I think the citizens of Massachusetts have a better way to spend this $226 million than we do," he said.

We heartily agree.

Adding insult to injury, lawmakers also rebuffed the voters’ wishes to make charitable contributions tax-deductible. The initiative, also on the 2000 ballot, had won by a landslide 3-to-1 margin.

House Democrats could have demonstrated at least a modicum of good faith by adopting one of the two taxpayer-friendly measures. Instead, lawmakers opted to deliver a double slap in the face to their constituents.

Unfortunately, the double betrayal was just the latest in a string of assaults on the right of initiative petition enshrined in the state constitution. In recent years, autocratic legislative leaders also have succeeded in evading or nullifying the people’s will on term limits, legislative salaries and more.

The right of initiative petition, established in 1917, was not intended to usurp Legislative prerogatives — and certainly not to establish an ad hoc People’s Legislature. (Heaven forfend.)

It was intended to give the electorate the option to make laws when their elected lawmakers refuse to act.

As the party-line vote on the tax measures dramatized, legislative nullification of initiatives is, in part, a toxic byproduct to the overwhelming one-party dominance on Beacon Hill. Last fall’s elections, which boosted the Democrats’ majority, only aggravated the partisan imbalance.

Voters complain about the anti-constituent antics of the Legislature. Unless they are willing to turn out incumbents who repeatedly thwart the will of the people, shameful nullification votes such those in the House this week will remain business as usual.

Return to top


The Boston Globe
Thursday, April 28, 2005

State, unions reach agreements
Romney aide cites modest pay pacts
By Scott S. Greenberger, Globe Staff


Governor Mitt Romney's administration announced yesterday that it has reached labor agreements with 32,000 of the 39,000 workers in the executive branch, with the governor's top budget aide boasting that he broke with tradition by giving the employees modest salary hikes that will not exceed the expected growth in state tax revenue.

Romney's budget chief Eric A. Kriss said the raises, which average less than 2 percent annually when spread over the time since the previous deals expired, will help the state avoid layoffs if the economy deteriorates. At least two of the unions also agreed to cut medical leave as part of their deals.

The state's last two contracts with workers in executive agencies included raises of between 3.5 percent and 5 percent annually, according to the administration. Kriss argues that raises of that size are not prudent when the state's revenues are growing slowly and healthcare costs are rising rapidly.

"This is the kind of thing that creates stability in the workforce," Kriss argued.

But leaders of two of the largest state workers' unions criticized the agreements, saying they represent another example of the Republican governor's animosity toward organized labor.

"We've dealt with Democrats, Republicans, conservatives, liberals, and this is the first governor we've ever had who simply does not believe in collective bargaining," said Kevin Preston, Massachusetts director of the National Association of Government Employees. About 13,000 carpenters, electricians, lawyers, and accountants in the union ratified contracts earlier this month. "We didn't have a choice. He's still going to be in office. It was either take what little we could get or take nothing."

NAGE's last contract expired in June 2003. Instead of giving union members retroactive pay, the state gave them a 3 percent raise in January and will give them another 2 percent bump in July. The new contract expires in June 2006. Preston said managers in state government have been getting raises of at least 3 percent since Romney took office in January 2003.

Michael Grunko, president of Service Employees International Union Local 509, which represents about 8,000 social workers and employees in the state's mental health and mental retardation agencies, said the administration's agreement with his union includes a 2 percent raise this January and another 2 percent increase next January.

Union members still have not ratified the deal, which would replace a contract that expired in June 2004.

Grunko said the union will express its frustration by flexing its political muscle in the 2006 governor's race.

"We'd been well over a year without an increase, and the prospect of getting any more seemed really dim," he said. "We'd prefer to go ahead and put our resources into fighting and getting a governor who appreciates the work that Department of Social Services social workers and folks in mental health and mental retardation do. Certainly, there is a lot this governor has given to us to motivate us."

Kriss has often played the role of Romney's heavy in the administration's frequent clashes with unions. In speeches, he has repeatedly decried organized labor's "monopoly" on state and municipal employment in Massachusetts, saying it creates a drag on city and state budgets. Romney and Kriss have urged local officials to follow their lead and take a harder line with public employees.

"The local level is where there are more serious problems," Kriss said yesterday.

Preston and Grunko also pointed out that the new contracts reduce the amount of time that workers can take off for medical emergencies. In NAGE's contract, family and medical leave was reduced from 52 weeks to 26 weeks, and workers will be able to use 30, rather than 60, unused sick days to care for a sick relative.

But Romney spokeswoman Shawn Feddeman noted that 26 weeks is still more than the 12 weeks that federal law requires. She also pointed out that under the new NAGE contract, workers will for the first time be reimbursed for parking and tolls when they are on official business. The new deal also includes increases in the state's contribution toward dental and vision insurance.

"These contracts are fair to state workers and fair to the taxpayers of Massachusetts," Feddeman said.

Return to top


The Telegram & Gazette
Monday, April 25, 2005

Public employees launch raid on taxpayers’ wallets again
By Jennifer Gaucher / As I See It


The effervescence of spring has arrived. While daffodils are absorbing the sunshine and potholes are attacking suspension systems, public employees, i.e., teachers and firefighters, are attempting to assault taxpayer wallets, once again. Public-employee mentality has reached an apex at which more is never enough and "wants" have drastically overridden "needs." In Spencer, two Proposition 2½ override questions will be on the May 2 ballot to fund insatiable and unquenchable employee appetites for bigger and better salaries and benefits packages.

A Proposition 2½ override is a permanent increase in property taxes every single year.

In the words of Chip Ford from Citizens for Limited Taxation, "Override provisions are intended for municipal emergencies only. They were never intended to fund bloated operating budgets and overly generous employee pay raises and benefits for which they are being abused today.... The biggest municipal emergency we have today is how to choke off the overspending. The solution is not higher taxes."

Question 1 asks residents to override Proposition 2-1/2 to fund annual increases of more than 200 percent in insurance benefits that will provide part-time, volunteer firefighters with a life insurance increase from $100,000 to $500,000, medical expense coverage increase from $25,000 to $100,000, maximum disability payments from $900 to $1,000 per week for life and $5,000 funeral benefits. This $5,000 funeral benefit also will be given to all volunteer town employees, annually.

Fact: Our current premiums are above average and our claims are below average, according to the town’s insurance representative. In 20 years, our firefighter claims total less than $6,000.

The facts do not justify the increases. The current annual insurance premium is $7,800; the new annual insurance premium will be $23,800. The town override drastically benefits insurance companies more than our volunteer firefighters.

Question 2 will seek an override to fund annual salary and benefit increases for teachers and administration on a permanent basis. Fact: School employee salaries are increasing $525,037; benefits are increasing $496,312. The School Committee has been aware of the impending health insurance cost crisis for at least three years and has blatantly refused to address the issue. Instead, it continues to support annual requests from the teachers union for higher and higher salaries and better and better benefit and perk packages.

School revenues have increased more than $1 million dollars in FY 2006, but spending has continued to exceed revenue increases. Rampant overspending at the school department has become a bad habit. As chief financial officer, the superintendent commands a large salary and is expected to be able to balance a budget, but CFOs/superintendents who have never worked in the private sector prefer gouging the taxpayer to holding themselves accountable. The use of overrides, by throwing more money at a problem, does not solve the problem. The problem is overspending that has gone on too long. The sad reality is that the school override will drastically benefit the administration and teachers, not the students. As public employees get fatter and fatter incomes and better and better benefit packages, the taxpayer gets poorer.

Fact: The average teacher’s salary in Spencer is $56,245; the average per capita income in Spencer is $18,564; the average household income is $42,335. Fact: Since 1996, student enrollment has decreased from 2,283 to 2,242 today.

The bottom line is that the town and the Spencer-East Brookfield Regional School District have once again overspent their available budgets, and the taxpayers are once again being asked to pick up the slack through Proposition 2½ overrides.

"No" votes on the override questions would send a clear and urgent message that we will not allow runaway spending to deplete our wallets and that town government needs to adhere to budgets and spend only what it has to spend, just as each one of us must do with each paycheck we receive.

Jennifer Gaucher is a Spencer selectman.

Return to top


The Telegram & Gazette
Monday, April 25, 2005

A Telegram & Gazette editorial
School squeeze
EAW renews perennial push for tax increase


Worcester got a sobering glimpse of the toll soaring expenses could take on its public schools — a net loss of 95 teachers in the coming year. The teachers union response is disappointing, to say the least.

Every spring, school districts in Massachusetts are required to notify teachers who may be laid off for the coming school year.

Worcester school officials say a $4.5 million budget deficit, the result of rising operating costs and shrinking revenue from the state, forced them to send layoff notices to 73 teachers and eliminate an additional 22 teaching positions by not replacing retiring teachers. Absent an increase in state education funding this year, even more teachers could lose their jobs.

Overall, the department’s operating costs are expected to increase by $10.2 million, about twice as much as new revenues. Topping the increases are health insurance costs, which will increase by about $3 million for school employees this year.

Worcester employees now contribute as little as 10 percent of health insurance costs, with the city paying a 90 percent share of employee health insurance costs, significantly more generous than the benefit received by most public- and private-sector employees.

A 75/25 split in contributions would yield savings of about $5 million in the school department alone. That would mean the teachers designated for layoffs would be retained. It also would give the department some wiggle room to negotiate a reasonable raise for all teachers in their new contract.

Nonetheless, the teachers union is taking a hard line against a health-benefit compromise. The solution urged by the Educational Association of Worcester is unlikely to win many friends among Worcester taxpayers.

Incredibly, Louis J. Cornacchioli, EAW executive secretary, has proposed raising taxes via a Proposition 2½ override, pointing out that the city legally could raise taxes by $12 million. Can he seriously believe that Worcester property owners, who have seen their tax bills and municipal fees rise sharply in recent years, are undertaxed?

Although the EAW leadership seems to have forgotten, Worcester repeatedly has demonstrated support of its public schools and teachers.

Of all the departments that sought Proposition 2½ overrides during the layoffs and austerity of the 1990s, voters approved continued, enhanced funding only for the schools. For more than a decade, the public schools have received by far the greatest share of state aid growth. Teachers certainly deserve to be compensated in keeping with their abilities and duties, but budget stability cannot be achieved if personnel costs — by far the largest budget account — are taken off the table.

The EAW leaders consistently have turned thumbs down on proposals that might have prevented most or all of the layoffs. Faced with the choice of concessions or layoffs, they repeatedly have opted for layoffs.

The EAW rank and file should consider their situation in the larger context of all the needs of the school system and urge their leadership to consider job-saving options, such as increased benefit contributions.

Return to top


The Lowell Sun
Tuesday, April 26, 2005

A Sun editorial
Clamping down on costs

The state's crackdown regarding reimbursements to cities and towns for school-building projects is long overdue and this week's slap at 14 communities is likely only the beginning.

It is unconscionable that some school districts used school-construction funds to purchase such items as sheet cakes and decorative bunting for dedication ceremonies, T-shirts, floral arrangements, fliers and baseball bats. How do those items directly relate to the construction of academic buildings? They were added on simply because the state was expected to pick up most of the tab.

Unfortunately, even though the state was funding the bulk of the projects, all of the money actually comes from taxpayers.

School officials often complain that residents don't understand their plight and are skeptical of their financial requests. Well, the results of the recent financial audits conducted by the state Department of Education revealed why residents have those feelings. Because school departments sometimes make unnecessary purchases.

We applaud state Treasurer Tim Cahill, who now oversees the school building authority, for his efforts. He is promising upcoming audits will scour projects for similar problems, which is exactly the kind of oversight all government projects need.

The state is refusing to reimburse Wilmington $116,468 in costs associated with construction of the middle school. The audit found Wilmington included items that didn't qualify as school-building expenses. Included in the town's disallowed items were a $52 sheet cake for the school's dedication ceremony, $1,211 in food services for an open house and $519 for T-shirts. While celebrating the school's opening sounds like a good idea, the state shouldn't be expected to pay for the festivities.

The city of Lawrence received the biggest hit. It had $3.5 million in costs rejected by the state, including a $26,000 truck, carpet for the superintendent's office (which sits in a downtown office, not the school) and interest costs higher than the state permitted.

The audits should serve as a warning to all communities that buying unnecessary items at the state's expense must stop. We hope it's a lesson learned quickly because, if not, local taxpayers will end up paying the extra bills.

Return to top


The MetroWest Daily News
Sunday, April 24, 2005

Franklin budget viewed in new light
By Eunice Kim, Daily News Staff


FRANKLIN -- Nearly six months after voters shot down an override, those who voted for and against the tax-raising ballot question have mixed views on the current budget situation.

Many believe the fiscal 2006 budget is not as dire as officials predicted in the fall and are glad the $3.9 million Proposition 2½ override failed in November. Others believe the infusion of revenue was necessary and will be needed in the future.

The lines today, though, are not clearly drawn between those who supported the override and those who fought against it.

"Many of the taxpayers who fought for the override feel misled about the town's financial situation. We don't know if that was purposeful or not," said Ed Cafasso, chairman of the former pro-override group Franklin Cares. He later added, "The town seems to have a lot more financial flexibility than predicted a year ago."

In the fall, town officials backed the override that would have funded eight firefighters and four police officers and kept the library open the minimum 64 hours a week required by the state. The override would have also covered a projected budget shortfall of about $3.3 million and given the schools $1.9 million.

At the time, officials discussed possible cuts to make if the override failed, including closing the King Street fire station. Since then, officials have said the budget forecast for fiscal 2006 is better than expected, partially due to higher proposed state aid figures. Many councilors have said building closings will not be necessary.

"The predictions of severe budget cuts seem to have been premature," said Cafasso, who was appointed to the School Committee after the override vote.

Frank Cummings, a former councilor who opposed the override, said he thinks officials cried wolf last year.

Others -- including former Franklin Cares member Clara Lodi and Charlie Findlen, who moderated the former interactive Web site the Franklin Forum and voted against the override -- said officials last year likely believed an override was needed. Lodi and Findlen, though, now said they believe the budget is not as bad as predicted.

"I think the proof is that nothing is closing," Findlen said.

Looking back, Cummings, Findlen and Theresa Shea, former head of the loosely organized anti-override group Franklin Taxpayer Objects, said they still do not believe an override was needed.

Town Administrator Jeffrey Nutting has proposed a fiscal 2006 budget of about $82.8 million, which includes using $600,000 in overlay surplus to fill a projected deficit of the same amount. Nutting has also recommended spending reserves to hire three additional police officers and eight firefighters.

The Finance Committee begins its review of the budget this week, and the council's budget process will begin after the Finance Committee makes its recommendations.

Cafasso said he and others who fought for the override are "now wondering why that very same plan couldn't have been proposed a year ago."

Shea and Cummings said the council should have used reserves first. Because the override failed, Shea said the council and administration have been forced to do "what they needed to do in the first place, sit down and fine tune" the budget.

Others, including former Franklin Cares members Lodi and Roberta Trahan, said they think the override in November was necessary.

"(The fiscal 2006 budget) looks like it's better, but when you look at it, do we have what we need? No. It's a perception thing," Trahan said.

Nutting's proposed budget holds the school budget's increase to $1.5 million, which is $480,000 short of what the School Committee said is needed to cover fixed-cost increases, or about $1.13 million short if 13 teachers are also hired next school year. School officials are now considering cuts and fee increases.

Looking forward, residents on both sides of the November override said reserves should be used to help balance the budget. The stabilization account contains about $6.6 million. According to the town's fiscal policies, a minimum of $5 million is to be kept in that rainy day account.

"There is a shortfall, and it has to be addressed," said former Franklin Cares member Michael Doherty, who said he prefers spending reserves over making cuts.

Cafasso said free cash is available for use toward the operating budget. The town has about $2.4 million in free cash, which under adopted policies, is to be used for the capital budget or unforeseen expenses.

"(The) town has enjoyed $2 million in free cash every year for 20 straight years. That is the exact definition of recurring revenue, but the money has been spent on one-time projects," Cafasso said.

Eventually, Cafasso, Doherty and Trahan said they believe an override will be needed. Doherty said the town cannot continue to use reserves to support the budget as those funds, if not replenished, will run dry.

"Until every spare penny of change is used and something happens that puts us in such a perilous situation where people think we need an override, I don't think another one will pass," Trahan said.

Many said the trust between town officials and residents must first be rebuilt. "They are going to have to wait a long time and really have some good facts," Findlen said.

Return to top


NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


Return to CLT Updates page

Return to CLT home page