Highlighting News Stories for Our Town for the week of January 13,  2003

Previous Newsbreak Archive

Newsbreak for Walpole

The Week – Jan. 13

The Year – 2003

          Financial Distress and Budget Deficits

We have heard the distress signals. We are reading the stories about the budget deficits facing many states across the country. California is facing the largest deficit in its history; New York State is facing its own huge deficit.

And, Massachusetts is no exception to this dilemma.

Gov. Romney is facing the problem head on and directing full attention to resolving the problem in a short term and long term basis.

How does this affect our town and our own budgets?

As we all know, a considerable segment of our revenue base from which the town budget is apportioned comes from the so-called state aid. That is, the state allocates funding from its tax receipts to cities and towns for roads and schools, for example.

Now, with huge budget deficits facing the state, the governor is suggesting that state aid might be reduced by a significant amount.

And, this translates into a real problem for Walpole, as we consider the budget process heading into the town meeting in May.

Assuming that state aid comes in at the same level as last year, the budget estimates are already tight.

Given a 10% drop in revenue from the state, out town budget budgets will be in serious trouble.

The reductions in state aid will come; the local budget crisis is looming.

New sources of revenue will be needed to balance our budgets in order to maintain the same level of service.

This could be the most serious financial crunch the town has faced in many years.

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