Budget gap closing.

Byline: Jan Gottesman 

LANCASTER - While the picture is far from rosy, the fiscal outlook for the town is a bit brighter today.

"The outlook for FY09 (the current fiscal year, which ends June 30) is still rough, because the winter has been so hard," Town Administrator Orlando Pacheco told selectmen during a Monday morning meeting. "But we slowed down our spending and have left the Reserve Fund (the town's emergency spending) intact."

Pacheco said officials want to use the Reserve Fund to pay the snow and ice account; while towns can "overspend" what they budgeted to remove ice and snow during the season, it must be repaid in the following year's budget, putting a crimp in that year's spending. With fiscal year 2010 (which begins July 1) looking tight with a promise of reduced local aid - and a projected deficit of approximately $100,000 - paying for the snow and ice spending for this year next year would make the situation worse.

"By paying for it out of the Reserve Fund, we can free up money and possibly save two employees' jobs," Pacheco said.

Pacheco sent "kudos" to the Nashoba Regional School Committee, which reduced its budget request so Lancaster's assessment only rose 1.68 percent, rather than the 2.25 percent officials used in the first budget draft, "which will save some people."

During the last meeting, officials proposed asking unions to forego negotiated pay raises to help close the budget deficit gap and possibly save jobs. Pacheco said after the meeting the letter went out this week and he expects the answer to be "no."

"We have been working with Minuteman Nashoba Heath Group to work on plan design changes that will be a win-win for both sides (union/employees and taxpayers)," Pacheco said. "The rate saver plans, which will be optional, will allow for higher co pays in exchange for reduced rates. They can sign on at their own choosing and get the savings if it works for them."

The town has bought a third-class postal permit and officials plan to mail copies of the budget to voters before the May 4 Town Meeting.

Selectman John Sonia broached the idea of allowing Proposition 21/2 debt exclusions onto the warrant and May 11 election ballots for items that were cut from the budget, to give people a chance to pay for items they want.

"I realize people would have to pay above and beyond the tax levy, but it would give people the option," Sonia said.

Pacheco said he would research what the deadline would be to get questions on the election ballot (overrides and debt exclusions must receive approval at both a town meeting and a town election), but selectmen said they have heard from voters that they would not approve an override in the current fiscal times.

"I realize you can't ask for more (money) from people who are getting less," Sonia said.

While the statewide town administrators' association is hearing that local aid could be cut more than the $220 million already proposed, possibly up to $375 million statewide, Pacheco said the town will continue to use the governor's local aid number until there is something more official.