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Summary of Recommendations by the Facilitation of Community Choices Committee [EXTRACT] The Committee concludes that Amherst faces a serious and growing budget gap between projected revenues and the cost of providing the current level of Municipal, School, and Library services. If State aid remains constant, the budget shortfall is approximately $2.66 Million in FY2010, rising to $10.2 M in FY2014. If State aid decreases by 15% next year, as in previous economic downturns, then the budget gap will be approximately $5.2 M in FY2010. The budget gap for the next 5 years is of such magnitude that substantial cutbacks and restructuring will be required, and revenue increases in some form will also be needed. The Committee recognizes that an override will probably be necessary at some point in the next 5 years to sustain even the most essential school and municipal services. All members agree that an override will not solve Amherst’s long-term budget gap and substantial cutbacks will be necessary regardless. Summary of Major FCCC Conclusions The cost of providing municipal services is rising at a faster rate than our revenues. This trend will continue. The chart below shows revenue and expenditures for the Town from 2004 to 2009 along with the FCCC forecast of revenue and expenditures assuming the (1) tax revenues follow their current path and there is no Proposition 2 1⁄2 override and (2) the Town maintains the current level of municipal and school services. The projected cost of maintaining current level of services rises at about 6% per year, while our revenues are expected rise at about 3% per year. Chapter 2 of this report explores the reasons for this finding in detail. The current budget for the Town, Schools, Library, and Capital Improvements is FY2009 is $61 million.  If our forecasts are wrong, it is more likely that the deficit will be higher, not lower. We identified a number of major risks in our budget forecasts. The largest of these is the potential for lower-than- expected State aid over the next five years. The prospect for a positive surprise from the State in coming years seems slim, while the odds of a negative surprise are growing as the economic crisis deepens. Final Conclusion Since we began our meetings in May the financial outlook has changed, and not for the better. We desperately need our town officials and our town leaders to prepare a new vision for our community, a vision based upon the persistent, inconvenient fact that the town will be dealing with increasingly limited resources at least through FY 2014. Without thoughtful, proactive preparation, important decisions, with repercussions that will last for years, might be made hastily under duress. To avoid this outcome, priorities need to be established and a plan of action needs to be developed. The efficient use of limited resources will need to quickly replace our collective expectations that there will be additional augmentations or restorations to our current level of services. “How to do more with less?” will require creative solutions to difficult problems. These are the urgent, immediate responsibilities of our elected officials and our town administrators. Extracted from Town of Amherst, Massachusetts Facilitation of Community Choices Committee (FCCC) Report to the Budget Coordinating Group “Hard Choices Ahead” Committee Members: Martha Hanner and Bob Saul, Co-Chairs, Isaac BenEzra, Alison Donta-Venman, Stan Gawle, Joan Golowich, Jerry Jolly, Irv Rhodes, Rich Spurgin, Katherine Vorwerk Feldman dated December 1, 2008 Thank you to the committee for your hard work. This is only a copy, not the official website of the FCCC. The full text is available at Facilitation of the Community Choices Committee Town of Amherst Official Website Note: the spreadsheet (above) is copied from the original, via copy and paste, with an added column showing five-year totals. |
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