Still, now that Governor Patrick
has announced his proposal to cut $3 million in Somerville's local aid
during the current fiscal year – and predicted that next year will be
just as bad or even worse – it's fair to ask if I still think
Somerville is in such great shape.

My answer is that, as a
community, Somerville will certainly experience some pain, and have to
make some hard choices, as a result of the current economy and the
associated loss of state aid. But we continue to be in much better
shape than many other communities – and we have no plans to retreat
from the service improvements we have made in recent years.

I
don't think we should back away from our recent progress because I
think it's clear that any cutbacks in city services will only increase
the problems now confronting our residents as a result of the national
economic situation. As I told a reporter over the weekend, I also think
it's clear that Governor Patrick understands that cuts in local aid
will simply make the local recession go deeper and last longer so, even
though he feels some cuts are unavoidable, he's going to do his very
best to protect cites and towns from unnecessary hardship. That's my
philosophy, too.

I am also grateful to the Governor for once
again requesting that cities and towns be given more freedom to
diversify their revenue sources through local option meal and hotel
taxes, and by closing the Telecommunications Tax loophole (the obsolete
1913 state law that allows telecomm companies to avoid paying local
property taxes). It's important for Somerville residents to understand,
however, that – even if the legislature approves the Governor's
proposal – these new sources of revenue won't begin to help us close
the state aid gap until next year.

So how, between now and the
June 30th end of FY 2009, do we make up the $3 million shortfall that
the state has reluctantly imposed upon us? Part of the answer comes
from changes we've already made. As soon as the state's budget
situation started to deteriorate back in October, we began to impose
restrictions on hiring. If a job doesn't help maintain revenues or core
services, we're letting it stay vacant. We also began cutting back on
the number of new initiatives previously planned for this year. For
example, we had planned to extend the hours at our branch libraries to
match the extended hours at the Central Library – but that service
improvement is now going on hold. On the capital budget side, we were
hoping to move ahead on a major upgrade to the Central Hill Park on
Highland Avenue that serves as home to our war memorials. Now that
project will have to wait.

Another part of the answer is that we
have been making city government steadily more efficient for the past
five years. By civilianizing clerical positions at the Police
Department, by becoming more energy efficient, by switching to an
internet protocol phone system, and making many other changes large and
small, we have been able to save hundreds of thousands of dollars a
year even as we expanded core city services. In making these changes,
we've put the analytical tools in place to help us prepare for a new
era of austerity.

But because the changes we have already made
won't be enough to close this latest gap, we are now preparing to take
additional steps to reduce spending and find new revenue. I have
already asked department heads to submit proposals in their areas of
city government. This week, I will be announcing the formation of a
special panel of outside experts to advise the City on revenue and
cost-saving measures – both long- and short-term – that will help us
get through the next two years with least possible impact on services.

I've
told this group (which includes local business and academic leaders as
well as outside specialists in local government operations) that
everything is on the table, and that we are willing to be creative
about changing the way we manage and spend in order to sustain, and
even expand, our current level of service.

That commitment is
very much in keeping with the progress we've made over the past five
years and in our willingness to look for, and adopt, best practices and
new technologies from the private sector and from other cities around
the country.

Here in Somerville, we will make whatever hard
choices are necessary to keep our city solvent and working through this
recession. And, as I said in my Midterm Address, what will pull us
through is that we have many advantages that other communities don't
have, including a solid economic development plan, more efficient
operations, an excellent credit rating and a strong cash position. Many
other cities in the Commonwealth are going to have cut police, fire and
teacher positions this year – and others will be closing school
programs and shuttering their libraries.

I still believe that we
can avoid those devastating choices. And if some residents think I'm
being overconfident, then I'll just have to live with that.