Quincy Councilor John F. Keenan

In December, six months after the proposal, six months after the compromise was voted, and when the Mayor submitted his tax rate proposal, it was clear that much of what had been predicted had unfortunately come to pass. Rather than support the tax rate as submitted, I urged the Council to join me in seeking cuts of an additional $2 million. The Mayor reviewed the budget and agreed to cut spending over the last six months of the fiscal year by $2 million. The City is now in the last two weeks of Fiscal Year 2009, and is working to ensure that all accounts are balanced by fiscal year end.

In May 2009 the Mayor submitted a $226.5 million budget for Fiscal Year 2010. In anticipation of the budget, the Finance Committee had reviewed the finances of several departments, and have since completed the review of departmental budgets. Final action on the budget was postponed because the State had not passed its budget, particularly local aid appropriations. On June 19, 2009, the House/Senate Conference Committee released their local aid figures, which reflect significant cuts in local aid to Quincy. The Conference Committee report shows local aid to Quincy in the amount of approximately $36.9 million, a drastic cut from last year's local aid. At its June 24, 2009 meeting, the City Council unanimously passed the Mayor's proposed budget. As chairman of the Finance Committee, I recommended to the Council that we monitor expenses and revenues at least monthly during FY 2010, to ensure that the City remains on track to balance the budget. If necessary, prompted by less revenue than estimated, the Council will act to cut expenditures.

While Fiscal Year 2010 promises to be challenging, the prospects of Fiscal Year 2011 appear even more daunting. State revenues have continued to decline and are expected to decline even more over the next several months. Locally, excise tax revenues will likely drop, while expenditures for the ordinary costs of government will increase. Employees in all departments, other than teachers within the School Department, deferred scheduled wage increases for FY 2010, but the matter of wage increases remains for FY 2011. Pension costs will increase in FY 2011, as will waste disposal costs and health insurance costs. Further, it is anticipated that federal stimulus funds designated for employee retention may not be funded to the same level in FY 2011.

The next two to three years in City government promise to be the most challenging of the last twenty-five years. Making it through will require the elected officials of our City to make difficult decisions, recognizing that not all constituencies will be happy. As long as we work together and keep the overall best interests of the City as the basis for our decisions, the City should make it through the tough times and continue to improve the quality of life for all its citizens.

I will update this section as we progress. In the meantime, if you have any questions, comments or suggestions, please do not hesitate to contact me at 617-786-9406 or jfkeenan@verizon.net.

Thank you, and enjoy the upcoming 4th of July holiday!

Sincerely,