Budget forecast bleak in North Attleboro

Town may lose 37 jobs in wake of revenue, aid cuts

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NORTH ATTLEBORO - The town is looking at reducing staff levels by the equivalent of 37 full-time positions, but likely more if budget cuts have to go deeper.

A presentation Monday on the budget for the fiscal year starting July 1 painted that bleak picture.

In order to keep all employees, pay negotiated raises and retain all services, the town would need to increase its budget by $4.2 million in the 2010 fiscal year - or about 6 percent, Town Administrator Mark Fisher said.

However, with the anticipated revenue challenges and cuts to state aid, the town is not even looking at level-funding for the 2010 fiscal year budget. Fisher said the town will need to cut $1.6 million or almost 2 percent from current levels to meet revenue projections.

While it is early in the budget process and the figures are still preliminary, the town is already anticipating dealing with some tough challenges. Just to get to level funding, the town would have to layoff 26 full-time and 9 part-time employees, leave five full-time and five part-time vacancies unfilled and reduce hours for five full-time and 39 part-time positions. Those cuts amount to a reduction in staffing that is equivalent to the loss of about 37 full-time employees and stretch across both the school and town sides of government.

Even with those cuts in staffing, the town will still have to reduce its budget by another $1.5 million. In terms of staffing along, that is another 31 employees, Fisher said.

Fisher provided the budget information during a state of the town budget address to all appointed and elected board members Monday - and similar sessions with town department heads and unions earlier this month.

"The more everyone knows about the process, the better off we'll be in future discussions," he said. "We don't have an easy road ahead of us, but it is one I feel very confident we can get through."

Fisher is recommending using $900,000 from the town's stabilization fund, or rainy day savings account, to help boost revenue in the 2010 budget. While the stabilization account has $2.7 million in it currently, Fisher said it is critical to save some of that money for the 2011 budget.

"This is a rainy day," he said. "But it's the first of what we think is going to be two years of rainy days."

To help with the additional $1.5 million in cuts, the town's unions have been asked to consider a new health insurance plan that would have no increase in premiums but a substantial increase in co-pays and deductibles. Fisher said the town would pay a portion of increase in co-pays, but would save in the end because the increase in health insurance costs would drop from 10 percent to 2 or 3 percent.

Unions have also been asked to make other concessions including reducing work weeks, furloughs and freezing step pay increases.

The three unions with contracts have been asked to give up their negotiated pay raises, which would save the town about $210,481. If all employees took a one-week furlough, the town would save $285,000.

If all employees, including elected officials who receive stipends, took a 4 percent pay reduction, it would cover the entire $1.5 million. Closing town hall on Friday afternoons would also cover most of the $1.5 million, Fisher said. Fisher said the unions have been receptive to the discussions thus far, and he thought that some concessions would ultimately be approved.

 

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