Brownsberger: Don't Expect State To Fill Town Coffers

It was a fitting start to a Town Meeting devoted to financial issues when State Rep. William Brownsberger, representing Middlesex District 24, updated members Tuesday night on the state's revenue and challenges for fiscal year 2011.

He commended the Board of Selectmen for deciding to have a Proposition 2 1/2 override vote on June 14. "These are tight times," Brownsberger said. "It was very prudent of the board to (push for) an override."

The last good year for Massachusetts was the 2008 fiscal year, said the representative of the 24th Middlesex District.

"(The state) is down by 9 percent in tax revenues with the costs of health care programs up 23 percent which is close to one third of the state budget," he said.

The rising health care costs have crowded out other priorities at the state level and, consequently, Brownsberger pointed out, state operating agencies have all taken cuts on an average of 8 percent.

Analysts expect the financial pressure to continue through 2012, Brownsberger has stated.

Local aid is also down which will have an impact on local budgets, Brownsberger said. Local tax revenues continue to rise 2 1/2 percent yet local budgets are not keeping up with inflation, he stated.

Looking forward to fiscal year 2011, the state has limited resources and is projecting a gap of $2.5 million. That's a cut of about 10 percent.

"If people choose to lower the sales tax (per a ballot question in the November election) the cut could be higher," Brownsberger said.

He stated no one knows at this point about whether there will be federal stimulus money coming to states.

As for alternatives to budget cuts for fiscal '11, Brownsberger has stated that there are no practical alternatives. He said there seems to be a strong political consensus against further tax increases and the state's reserve fund is substantially depleted.

Therefore, Brownsberger believes the state will have to live within its means and "share some of the pain" with local governments, some of which have the option of passing overrides.

Not all the news from the State House is dire, however.

Brownsberger highlighted some municipal relief that has been discussed this session such as a pension funding scheduled extension; early retirement incentive and greater control over health care plan design. Some of the reforms that have been discussed included that of ethics, pensions and transportation.