Mansfield Facing $3.5 Million Budget Gap

Weeks short of the House final budget figures, and perhaps months short of solid numbers from the state, Mansfield is staring down a deficit of about $3.5 million, the majority of that fueled by school salaries and benefits and the costs of the proposed 43 new full-time equivalent staff positions in the school department. 

Th shows a deficit of $3.2 million. Yet the municipal side of the town's total $74 million budget is by comparison, about $183,000 from balancing.

Jim Lezzarra of the finance committee told selectmen Wednesday, Feb. 16 that town revenues are down about $1.6 million from 2010, and said residents are not likely to respond favorably to the dire predictions while they watch their property tax payments rise.

 "All our revenues are pretty flat," Lezarra said. "The budget will be squeezed because of that."
He noted property taxes will increase by $1.4 million over last year, but said the $20 million in state aid the town took in will not increase appreciably. 

The first pass budget explanation, called a "1000-foot overview" by Selectmen Chairman Kevin Moran, is just a preliminary step in what will be a months-long discussion of overall town needs and how to satisfy them with ever-decreasing funds.  

Salaries for town and school employees and benefits for both are carried on the town side of the ledger and fuel most of the costs for the day-to-day operation of the community. Yet the neglect of capital needs for equipment, roads, and buildings have built up over time, and Town Manager Bill Ross predicts aging infrastructure and equipment will eventually cost the town plenty. 

Lazarra pointed out the capital needs list has not yet been taken into account within the first calculations, but he said before long at least one of those costs will be immediately obvious.

 "When we get to spring and see the we will have to address that," he said.  The capital needs committee will meet tonight, and the school department will present its wish list to members. 

A second ominous force gathering speed every month, is the ever-accruing cost of funding future health care and benefits for upcoming retirees, the so-called "unfunded liability" that has recently occupied the limelight statewide.  The town intended to begin setting aside money last year in a special account, but the move was scrapped to balance the budget at the last minute. At present, Lezzara said, Mansfield's unfunded liability stands at about $70 million.  He said one retiree receiving health care and other benefits from the town at today's prices can cost the town $700 a month.  "We are not putting aside money for employees active now for the future," he said. "The liability is growing on a national level, and is consuming a huge part of our budget."  Within the past two weeks, reports have indicated that some larger communities in Massachusetts would be bankrupt in the future if steps are not taken immediately to set aside money on a regular basis for the unfunded benefits price tag. 

Selectmen intend to bring municipal and school department officials together in a single budget forum soon, so that the real needs and deficits of the town as a whole can be presented as clearly as possible.