Lawrence City
Council refuses to set tax rate, sticks
freshmen councilors with budget mess
Blanchette Pats himself on the back while
bungling his duties to set a tax rate,
oversee finances
Tom Duggan
Under the leadership of
Council President Patrick Blanchette, the
Lawrence City Council spent the last two
years taking symbolic budget
votes, blaming the Sullivan
administration for their own inaction,
and refusing to pass significant
budgetary reforms to deal with the
citys growing financial crisis.
Now, the 2008-2009 Lawrence City Council
has ended its two year term and
adjourned its final meeting leaving
a budget deficit in the neighborhood of
$15 million (depending on whose budget
figures you believe). Yet, despite the
massive debt created by the 08-09 city
council and the lack of reforms in the
last two years, Council President Patrick
Blanchette closed out the two year
session without addressing the deficit,
setting a tax rate for homes and
businesses, or holding a public hearing.
The tax-recap was put on the regular city
council agenda at the request of Mayor
Sullivan less than a month ago.
Blanchette sent the issue to the Budget
and Finance Committee to be passed. But
the Budget and Finance chairman, Grisel
Silva refused to discuss the matter at
her final budget meeting and, instead
attacked the mayor for financially
mismanaging the city.
With no recommendation from Silvas
Budget committee, the full city council
still had the option to bring up the
matter at their last meeting. They could
have ordered a public hearing (as
required by law) and they could have set
the citys property tax rate before
the end of the year.
Not having done that; property owners in
Lawrence will not get their tax bills
until after the new council is sworn in,
holds their first meeting, sets a date
for a public hearing, discusses and
debates the budget, the tax rate for home
owners, the tax rate for businesses,
approves all of that, gets the new
mayors signature, and has the
citys budget re-cap certified by
the States Department of revenue.
That means a widening budget deficit
every day that the tax bills do not go
out (after January 1) for lack of a tax
rate being set by the current city
council .
Lawrences Budget and Finance
Director, Mark Andrews insists that the
operating deficit for the current budget
is under $2 Million. But, those budget
calculations include projected income
from the state which legislators have
already said will be significantly
reduced due to state financial woes.
Some Lawrence officials say the actual
city debt could climb as high as 19
million by mid-January, and when the new
(fiscal 2010-2011) budget is passed in
June of next year, state officials say
Lawrence is looking at an additional $10
to $20million reduction in the
citys revenue stream.
According to the charter
(the citys constitution) it is the
city councils responsibility to
approve the budget by July 1, of every
year. It is also their obligation to
approve all expenses in that budget.
In the last two to four years, councilors
have blamed the Sullivan
administration for the budget
deficits but the fact is, the city
council is mandated by charter and state
law to investigate, pass or reject the
city budget. It is they who must
reconcile the citys finances and
bring the city budget into balance by
December 31st.
It is they who must set a tax rate for
the upcoming year and send an official
report to the States Department of
Revenue, certifying that the citys
budget is in balance.
But instead of fulfilling their
obligation to the taxpayers and the
voters, Patrick Blanchette, Grisel Silva
and the rest of the 08-09 city council
spent their last meeting messaging each
others egos, waxing philosophical
about their years together and pandering
to the incoming Lantigua administration.
Now, a new council must deal with
Blanchettes budget mess. A new
council which has six new members coming
on board January 5th (out of nine).
Thats six new councilors who will
have to reconcile the citys budget
mess, set the tax rate and have the
citys finances certified by the
states Department of Revenue.
According to sources at the state house,
the legislature passed a new law last
month allowing cities like Lawrence
additional time to submit their tax
classification (House Bill #2226,
extension of mailing date)
which means the council is not in
violation of state law. (The law was
signed by Governor Patrick on December
15th. For a copy of the bill go to: http://www.mass.gov/legis/bills/senate/186/st02pdf/st02226.pdf
Lawrence Mayor Mike Sullivan and at least
two outgoing city councilors (who did not
want to be identified) told the Valley
Patriot that they believe the tax
classification and re-cap should be done
by the present council regardless of the
new regulation.
Look, its this city
councils obligation not to set the
tax rate, said Lawrence Mayor
Michael Sullivan. They should do it
before the end of the year and not burden
the new councilors with such a tremendous
responsibility while theyre just
coming in the door. Its also not
fair to the taxpayers. The tax bills need
to go out in a timely fashion or the city
loses millions of dollars.
The communities of Andover and North
Andover have already set their tax
classification. Lawrence receives more
than 75% of its annual budget from
suburban, state tax-payers.
Governor Deval Patrick told The Valley
Patriot last week that the state would be
giving assistance to the City of Lawrence
but "that help will most likely come
in the form of helping the city with
reforming the way they do things, not
necessarily in the form of financial help
but the details are still being worked
out."
Sources close to the governor say that
Deval Patrick is considering appointing a
financial receiver to oversee the city's
finances, "but they're just not
going to call it a receiver."
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