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With Local Aid cuts on the way, Dracut votes another Raise

House Speaker Sal DiMasi is warning that local aid next year could be cut up to 10%. That’s a big impact on a town like ours that gets nearly 40% of its revenue (I believe) from the state.
But if you’re a union employee, I guess you don’t have to worry. Unless you’re on the bottom of the list.
You see, the school committee voted last night for raises for the teacher’s union once again. 8% over the next three years. We heard about this a few days ago.
The school administration must believe they have the funding for this. I’m not sure where it will come from. From this morning’s Lowell Sun story Nancy Gagnon is concerned as well. She voted against it, the others for it.
What will happen if the salary funding does not increase enough to cover those raises, is that the newest and often most energetic teachers will be the first to be let go. Thats the union way.
I don’t agree with Finance Chair Gary Marsella’s point that we voted the school committee in to make these decisions. I still believe as much of this negotiation should be made public as possible. If not during negotiation, then a summary of what was done should be presented to the public afterwards. Otherwise, how do we measure whether those negotiations were good for the town and whether those elected officials are doing what we believe is best?
Warren Shaw’s take on this during last week’s radio show was that this means that the schools must believe they have plenty of money to fulfill their needs. That’s one take on it.
Why do I doubt its true?

Update: Lowell Sun editorial agrees on most of my points
Negotiations done in private, no public discussion at all, and a quick vote.. not exactly open and transparent government.

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  1. JoeS | Dec 9, 2008 | Reply

    Fiscal Year 2009 Revenues by Source (Dracut)

    Revenue Source Percent of Total
    Tax Levy 33,715,226 45.67
    State Aid 24,039,915 32.56
    Local Receipts 14,176,536 19.20
    Other Available 1,899,019 2.57
    Total 73,830,696

    From:
    http://www.mass.gov/?pageID=dorterminal&L=3&L0=Home&L1=Local+Officials&L2=Municipal+Data+and+Financial+Management&sid=Ador&b=terminalcontent&f=dls_mdmstuf_aag_aagindex&csid=Ador

  2. Shawn | Dec 9, 2008 | Reply

    Thanks Joe, that was it.
    The total state aid is about 33% (and that probably includes the state school funding as well).

    With local receipts going down considerably this year (excise taxes on new cars, construction permits, etc).. I’m pretty sure we’ll be much closer to 40 by next year.

    But that is exactly the place to get the numbers.

  3. JoeS | Dec 9, 2008 | Reply

    From the same link:

    Fiscal Year 2009 Proposition 2½ Levy Capacity

    New Growth 406,630
    Override 0
    Debt Exclusion 1,021,330
    Levy Limit 33,735,728
    Excess Capacity 20,502
    Ceiling 77,613,320
    Override Capacity 44,898,922

    As you can see the Levy Limit has nearly been reached with FY 2009, so if State Aid is reduced (and if local receipts fall) Prop 2 & 1/2 limits the tax increase so that the only options will be drastic cost reductions or an override.

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