"We began preparing an internal review of cost-saving and revenue options back in late October, but the new round of anticipated cuts in local aid means that we have to find a way to close an additional $3 million gap in the current fiscal year," Mayor Curtatone said. "Somerville may be in better fiscal shape than many other cities and towns in Massachusetts, but we're still faced with some painful choices – and we don't expect much if any improvement in 2010. We could complete this process internally, but why shouldn't we draw on the wisdom and expertise that's available all around us? We've never been shy about turning to outside experts for advice about municipal best practices, and I welcome the fresh perspective this distinguished outside group will bring."

Curtatone explained that the FAC would have the opportunity to make cost savings, cost recovery and financial management recommendations in all areas of city government, and would address both operating costs and capital spending. "All options are on the table, but my charge to this new committee is to help us avoid service cuts and layoffs if at all possible," Curtatone said.

"In the end, this new advisory group can't make the tough decisions for us, but they can offer helpful guidance, and I am pleased that the Mayor is establishing this special committee," said Ward 2 Alderman Maryann Heuston, who chairs the Board's Finance Committee. "I also think that having an outside group involved adds an extra measure of transparency to what is going to be a challenging process – and that's important if the public is going to have confidence in the final plan that the Mayor and the Aldermen develop."

"Even as he proposes cuts in local aid, Governor Patrick has been careful to argue that cities and towns should be given more management tools to control costs and develop a more balanced revenue base," said Curtatone. "But even if we gain the option of a modest increase in meals or hotel taxes, and even if the legislature is finally able to close the obsolete and pointless Telecommunications Tax loophole, we won't see any new revenue from these changes until next year. We need to act now to make up for these cuts – and we will."

"Somerville is a regional leader in adopting municipal best practices to improve service efficiency," said Samuel Tyler. "However, the size of the state aid cuts this year and next will require creative but hard choices and I am happy to join the Advisory Committee members in bringing outside thinking to address this challenge."

Curtatone said the group would be convened as quickly as possibly and would report back with recommendations by mid-March at the latest. "We'd be happy to act even faster on interim recommendations that the committee may choose to make before their final report," said Curtatone. "I'm sorry to impose such a tight timetable, but we really don't have a choice. We have to begin closing the local aid gap well before the end of the current fiscal year on June 30th.

"In the meantime, I will also begin talking directly to our union leaders across city government," said Curtatone. "We want to partner with organized labor on developing realistic approaches to keeping cost under control while maintaining core services. I anticipate their willing cooperation."