Local mayors met with Lt. Gov. Tim Murray at the Statehouse yesterday, bracing for an uncertain future caused by the global financial crisis.
"The message was let's work together and find solutions," Peabody Mayor Michael Bonfanti said.
The big fear is that state lawmakers will be forced to cut local aid, the money the state gives to local cities and towns to help pay for services like education and road repairs.
In Salem, for example, local aid is the second-largest source of income in the city budget, behind property taxes. Drastic cuts to local aid could mean city leaders would have to make painful cuts on the local level.
Communities suffered strong cuts to local aid in 2003, and while funding has gone up since then, it hasn't returned to pre-2003 levels in many communities.
"Where everybody's at bare bones already, any further reductions would be really, really difficult," Salem Mayor Kim Driscoll said.
But the message from the lieutenant governor yesterday was at least somewhat reassuring: There are no plans to reduce local aid, at least for now.
"They indicated that cuts to local aid would be a last resort," Beverly Mayor Bill Scanlon said.
Of course, a reduction could still happen, and the state plans to announce more projections on Wednesday.
Cities and towns are hardly alone. Public colleges also face tough times.
"We don't know exactly what will be asked of us, but our anticipation is certainly there will be budget reductions," said Salem State College President Patricia Meservey.
That could range from putting off new technology purchases to examining travel expenses to keeping some vacant positions open. The college will try to minimize the impact on student programs, she said.
"What it's dependent on is the magnitude of the cut we receive," Meservey said. "I can't be optimistic or pessimistic at this point. It's an unknown."
The financial crisis comes at a time when the college is chasing university status and hoping to embark on major construction projects, including a new residence hall, library and redevelopment of the old Weir property.
"It's my understanding at this juncture that the commonwealth is confident that they'll be able to go forward with those projects," she said.
At city halls on the North Shore, mayors are bracing for more than just a possible reduction in local aid.
In Salem, many personnel vacancies are being left open. Hotel-motel tax revenue has been flat this year, and the high cost of road salt and gasoline for snowplows could make for a financially chilling winter, Driscoll told the City Council Thursday night.
"Nothing we're overly concerned about, it's just the first quarter," Driscoll said. "But it's just something we're watching."
Even stalled auto sales are hurting city budgets.
"Excise taxes have decreased," Bonfanti said. "People aren't buying cars."
Despite the bleak outlook, yesterday's meeting also had its reassuring moments.
"I think the attitude was we're all in this together," Scanlon said. "We're all a team, and we'll be able to work it out as best as possible."
"We've been through tough times already in Salem," Driscoll said. "The sun is going to rise, and the sun is going to set. ... Right now, we're not sounding alarm bells. We're just being cautious."
Staff writer Chris Cassidy can be reached at ccassidy@salem news.com.
