Published April 22, 2020
By DAN TOMASELLO
LYNNFIELD — Town Administrator Rob Dolan will be asking the Board of Selectmen to reopen the proposed fiscal year 2021 operating and capital budgets.
Before the COVID-19 virus forced the state to close non-essential businesses, Dolan proposed a $58,959,164 operating budget for the next fiscal year, representing a 3.1 percent increase over FY20’s $57,199,707 appropriation. He also recommended a $2,571,726 capital budget for the next fiscal year.
In an interview with the Villager, Dolan said he plans on asking the Board of Selectmen to reopen the two budgets. He will be submitting new spending proposals for FY21.
“The majority of the town’s revenues are secure, but I am concerned about the virus’ impact on local receipts and state aid,” said Dolan. “We need to budget as conservatively as possible.”
Selectmen Chairman Phil Crawford agreed.
“We are going to make some cuts in order to be proactive going into the next fiscal year,” said Crawford. “It’s primarily going to be on the capital side. We are planning on reviewing those items before October Town Meeting, as we will have a better idea of where we are at that point. We are trying to be proactive. We want to do what is best for the town.”
While Dolan noted that the majority of the town’s two spending plans are funded by property taxes, he said the statewide shutdown has impacted local receipts such as meals’ taxes, fees, licenses, permits, rentals and motor vehicle excise taxes. He originally projected a $50,000 increase in local receipts, totaling $5.2 million, when he first presented the proposed FY21 operating budget to the selectmen in early March.
“The revenue we generate from meals’ taxes is taking a hit with all of the restaurants closed,” said Dolan.
Before the crisis started in mid-March, Dolan told the selectmen he was “concerned” that the town would not generate the $5.2 million in local receipts “if there is a downturn in the economy.”
Dolan is also concerned about the virus’ impact on state aid. Lynnfield is projected to receive $5,750,605 in state aid as part of Gov. Charlie Baker’s proposed FY21 state budget. The House of Representatives and State Senate have yet to begin working on each branch’s respective version of the state budget because lawmakers have been focused on fighting the pandemic.
“Education aid is very important in Lynnfield,” said Dolan. “I’m very concerned because the state is going to have a big revenue problem in FY20 and an even bigger problem in FY21.”
Dolan said the town will have a balanced budget for FY21 and the town will still be investing in its reserve funds.
“We are trying to help the town overcome the challenges in FY20 and FY21 without any significant disturbances,” said Dolan. “But even if things go back to normal in the next three to four months, any economist will tell you that it’s going to take years to recover from this.”
While Dolan stressed it’s important for the state to focus on fighting the pandemic right now, he hopes local businesses and restaurants reopen sooner rather than later.
The town and state budgets are not the only spending plans still in flux. Superintendent Jane Tremblay informed the Villager officials are still finalizing the School Department’s spending plan for FY21. Tremblay originally proposed a $27,530,266 budget for the next fiscal year, representing a 6.4 percent increase over FY20. However, the selectmen told Tremblay in early March that she needed to reduce the school budget to a 3 percent increase.
“The budget is still in process,” said Tremblay.
