The problem: lack of leadership

By PHIL JACKSON

Published on January 16, 2009

While admittedly dramatic, the financial problem we're confronting this year should not be news. For the past three years, the Finance Committee has clearly warned town officials, Town Meeting and the public that without radical changes in town operations, the chronic shortfall between our revenues and expenses would continue grow each year. The data they provided has been very clear in this regard.

Our already-difficult situation has certainly been made worse by the unprecedented economic crisis that continues to unfold. The Finance Committee has also repeatedly warned against funding operating budgets with reserves, which simply deferred the problem. The committee's concern about having inadequate reserves to use during the next economic downturn were ignored by town officials and Town Meeting, who continued to use this strategy as a way to avoid difficult choices.

Additionally, the Finance Committee provided town officials with recommendations for controlling expenses and expanding revenues to mitigate our structural deficit. Their recommendations in the past three years have included: spending less on capital projects; capping annual budgets at 1 percent (or less); creating a core budget to prioritize spending; seeking to increase fees; asking for greater contributions from the university and colleges; seeking new local options taxes; seeking a Prop. 2½ override; and promoting more economic development. It should be noted that the recently published Facilitation of Community Choices Committee's report contains every single one of these recommendations.

I've spent a significant amount of time perusing the FCCC's full report, especially the section with written suggestions, hoping to find some novel ideas that haven't been previously recommended. While I found nothing new, there are many suggestions to contain operational costs and to seek maximum efficiencies through consolidation of departments and resources.

While we have been told this has occurred, there has not yet been a satisfactory assessment made of current costs and possible cost savings through such actions over a period of several years. I was under the impression that the "blue ribbon" panel convened by the Town Manager more than a year ago was going to carefully study this issue. To my knowledge, no report has been issued.

Another common theme is eliminating costs by privatizing selected facilities and functions now supported by taxation. These include the Cherry Hill golf course, the two municipal pools, the Leisure Services operation and the Senior Center. There are many who believe the town should close the two branch libraries, as well as Marks Meadow Elementary, a UMass-owned facility. Again, no specific analysis of current costs and potential savings in operating and personnel expenses for this type of action has been presented.

Another suggestion is to address the contracts with town staff for salaries and benefits. It is clear that recent negotiations have resulted in personnel costs that the town can't afford and that are unsustainable. There also needs to be an active plan to address the town's current health insurance program for staff and retirees, which is equally as unaffordable and unsustainable.

The real problem isn't so much our financial situation or a lack of possible strategies to address it. The problem continues to be a lack of ownership and leadership by the duly elected or appointed town officials who are ultimately responsible for making the hard and unpopular choices.

The Select Board and the town manager have received more than ample input to inform the formulation of the financial policies and budget guidelines for the next several years. It's time for them to stop asking and time for them to start leading. I look forward to their presenting a specific long-term strategy and plan being presented at annual Town Meeting in the spring.

Phil Jackson is an educational consultant.