Danvers Looks To Close 'Significantly Larger' Budget Gap Ahead Of Town Presentation

DANVERS, MA — Danvers Town Manager Jill Cahill allowed that some very tough decisions will be made in the coming weeks as her office works to close what she said is a "significantly larger" budget gap than years past ahead of this year's proposal.

"This is not a reflection on the financial management of the town," Cahill told the Select Board this week. "It's a reflection of the economy as a whole and the crisis that municipalities are facing across the Commonwealth."

Cahill said town employee health insurance costs, special education out-of-district transportation costs, state aid not keeping pace with inflation, and other costs out of the town's control, rising well above 2.5 percent, are contributing to the crunch that she said has been described as a historic "perfect storm" for the upcoming fiscal year.

"I know very few of my colleagues are looking at a fun budget year," Cahill said. "The external forces are really forcing us to make increasingly tough decisions for residents."

She said her budget recommendations will be made by March 1 for discussion at the March 7 townwide budget discussion.

She said health insurance costs are a "major driver" and are expected to rise between 8 and 16 percent for the coming year, while state aid has risen 0.6 percent in relation to inflation.

"I hate to be setting a bleak stage for you," she said. "I would much prefer to have my first budget to be a fun one. But it is not.

"I want to make sure the Board is prepared and understanding of some of the decisions that will be coming forth in the budget," she said.

Other North Shore cities and towns facing proposed budget deficits include Beverly, looking at a proposed $3.9 million deficit in expenses compared to revenues, while Marblehead Town Administration Thatcher Kezer said that the town may need to layoff 50 more employees without a property tax override to close an $8.4 million budget gap.

Peabody Mayor Ted Bettencourt has called the forthcoming budget year projections "deeply troubling."

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. X/Twitter: @Scott_Souza.)