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Copyright 2010 The Somerville News and Prospect Hill Publishing, Inc. The Somerville News is the only locally owned and operated community newspaper in Somerville.
By Andrew Firestone
With the $30.6 billion state budget approved last week, Somerville has joined cities and towns across Massachusetts in coming to grips with a frightening situation: for the first time City healthcare costs have risen above state aid. This means that, for the $29.1 million in state aid for the fiscal year 2011, all of it has gone to bridge the $34.1 million in healthcare costs. In the last decade, aid to Somerville has fallen by $28.3 million, and while the City has managed to stave off any cuts to services, it is becoming clearer that tax reform might be needed in order to save failing municipalities across the state.
“What’s happened in the last several years is that [state aid] has dropped off precipitously and what has happened, it’s not just Somerville, but almost every city and town in Massachusetts that gets some state aid has had to recalculate how to manage their expenses,” said Alderman-at-Large John Connolly.
“The lack of the consistence in state aid, which is what hurts, has made cities and towns much more independent and self-reliant as a result and it’s made decisions much more difficult for local leaders, not just in Somerville but also across the state,” he said.
These decisions include raising fees for parking, as well as making zoning changes to accommodate large developments, such as in Assembly Square, and plans for the Inner Belt. Connolly said this decision stems from “how vital the commercial tax dollar is to the City.”
Representative Denise Provost said that poor subsidy choices for the state have had ruinous consequences for the amount of discretionary spending the state can provide. “If you look at the $54 million that was handed over to Evergreen Solar, which has since relocated to China, it would almost cover the shortfall in local aid for this year for the entire Commonwealth,” she said. The subsidies have not alleviated the burden of healthcare, which now makes up a third of the state budget.
“[It’s] good because it means that, even in this terrible recession, people are covered for healthcare, but it’s very expensive,” she said. She compared the situation in the state budget to defense spending for the federal government.
However, deep cuts have effected spending for education, care for the elderly, and also mental health services, which economists say is a recipe for disaster.
“Unfortunately nothing has been spared,” said Representative Carl Sciortino. “I don’t think there is any sector of the budget that hasn’t seen significant reductions over the last couple of years. We are in the midst of a global financial meltdown that has direct impact on the state’s revenue needs.”
Sciortino described the situation as having been engineered by continuous cuts during times good and bad throughout the last several decades. “Massachusetts used to have the nickname ‘Taxachusetts’ and in the 1970s that was very appropriate,” he said, “but especially through the 1990s, the state reduced the tax burden for families and businesses to the point where we now no longer have the revenue base that we need to meet basic services.”
“In fact, every time the economy was good we reduced taxes, when the economy was bad we reduced services. So we’ve basically ratcheted ourselves down to a point where we can’t afford to meet the basic needs of what state government needs to pay for. Until we have a fundamental readjustment of our revenue structure, there really are only bad choices to make on the cutting side of the ledger,” he said.
One of these choices included the GIC bill in the budget, which has generated differing opinions on all sides. Mayor Joseph Curtatone has said that subscribing to the program would help save the City of Somerville somewhere near $10 million. However, Representatives Sciortino, Provost and Tim Toomey who represent sections of Somerville all voted against it in the house, saying it curtailed union labor rights.
“They’re one step removed,” said Connolly. “They don’t see that it’s something that has to happen because it’s going to make the city much more balanced. This is something we need to do.”
For now, options in the future include raising taxes for those in the upper tax brackets, but much of the source of state aid, being the lottery, is dependent upon the economy. The shortfall caused the City to take out $2 million from their “Rainy Day” fund in order to bridge the deficit in the budget. “We’re better off than other communities but still, we’re effected,” said Connolly. “We were anticipating a bigger hit this year, and it turned out to be not quite as draconian, but still we had to take money out of our free-cash account which is something you really don’t like to have to do.”
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What they need to do is eliminate the large tax exemptions for the “T”, B&M [Guilford] railroad & Tufts University.
One alderman stated that we shouldnt bother Tufts as they employ some residents. So is he loyal to the citizens who employ him or to a corporation? Other businesses in the city employ residents & they pay taxes.
Tufts, like Harvard U. is diversified, not only education but also involved with profit making organizations. MIT & Harvard give about $8 million each in lieu of taxes to Cambridge. This is for services they receive from the city, Fire/EMS/Police, DPW, etc. Somerville should get the same from these large tax exempt organizations or charge everytime service is provided to them.
Ha, I called it
“However, deep cuts have effected spending for education, care for the elderly, and also mental health services… “Unfortunately nothing has been spared,” said Representative Carl Sciortino. ”
We have the jazz festival, prizes for people that walk, and all this discretionary spending and the second they need to make a budget, we need to have ‘deep cuts’ for the kids, the old and the sick. BS.
“In fact, every time the economy was good we reduced taxes” More BS. Why doesnt The Somerville ‘News’ call him on this comment. Few recessions ago, ‘temporary’ income tax increase. Most recent, sales tax increase. None of these cut when the economy is good. Per capita total tax receipts have steadily increased.
Carla Sciortino blames this mess on tax cuts on the middle class???? Who keeps voting for him??
Those are state cuts. In Somerville, the Council on Aging budget increased 1.9% and the School Department budget increased 1.67%. The recreation budget increased 8.74%. No local cuts have been made for kids or the elderly.
If you care to read it, the Mayor listed many of the new initiatives in the school system in a recent op-ed: http://www.thesomervillenews.com/archives/16259
People keep voting for Carl because he is a “Democrat” of the new age, problem is a lot of the elderly and people who don’t know better vote straight Democratic ticket, not the candidate. This guy should be thrown out of office next year along with all the rest of the so called Democrats really they are socialist better yet fascist because they know better then we small ones, go online and read some of his and the other two state delegation members voting record, Provost and Jehlen, show me votes for the real middle class and private sector, not these three. All three of them voted for the last 3 House Speakers that were caught up in crooked dealings. Hell check the record Carl even gave money to the two last ones.
The real problem is at the federal level. (Or really, at the international level at this point.) The hedge fund parasite class steals all the wealth created by middle class and working people, and can’t even be bothered to pay reasonable taxes on it. Instead, they spend on political donations, lobbyists, and propaganda so that they always get their way, and always get to keep stealing more and more, no matter the circumstances.
Locally, there’s just not that much that can be done, by Carl Sciortino, or anyone else, about the serious problems created by their greed–of which sky high health care costs is only one.
Sciortino is a plain old liberal, that’s all…where do you get “socialist?”
I agree with Gene, these guys are socialist and vote straight party line no matter what, they are not interested in the average person, because they can’t relate. I work in the private sector not like this guy Carl who has never worked in the private sector probably since high school, ask him and these others what their jobs are and career and they will tell you their elected offices. Because were stupid and elect them because they smiled at us or told us what we wanted to hear. Carl, Denise and that senator Pat wouldn’t know what its like to be average, because they get paid nice big salaries from us. Our state elected officials use to be Part Time legislators like New Hampshire now they are full time which gives them time to think of ways to tax us and tell us what to do, what to eat and how much we can do this or not. We should have term limits, and part time state representatives again like NH.
If you are interested, there is a 5 minute video that describes the state’s tax levels, how they’ve changed over time, and what that means for our ability to pay for things we all depend on from state government: http://www.massbudget.org/documentsearch/findDocument?doc_id=780