By George P. Hassett

Mayor Joseph A. Curtatone is calling his proposed fiscal 2009 budget “a great achievement.”

In a time when other cities are laying off teachers and trying to pass tax overrides, Somerville, he said, is maintaining services without layoffs and increasing education spending by $2 million.

New initiatives include a police K-9 unit and Emergency Operations center, the full time staffing of Fire Engine 4 and 238 new trees.

The proposed budget is $165,079,540, about $7 million more than last year. According to Curtatone, the city received less than a 1 percent increase – about $312,398 — in state aid from last year.

That meager increase combined with tough economic times across the country, a decline in condominium conversions and skyrocketing energy costs made next year’s budget a challenge, Curtatone said. The city will spend at least $700,000 on heating oil alone, an increase of 52 percent since last year.

To offset cost increases and boost revenues, Curtatone proposed more aggressive collection of unpaid violations, increases in some fee and permit costs, more energy-saving measures in municipal and school buildings and increasing city employee contributions to their health plans to 20 percent.

Curtatone said there were no cuts or layoffs in this year’s budget. However, there was some shuffling. Superintendent of Schools Anthony Pierantozzi said he reduced the city’s elementary school staff by four teachers. However, those four teachers will be moved to other positions with the city and will not lose their jobs, he said.

A teacher will be added to the city’s alternative high school, which means eight more students can be added to next year’s enrollment there.

Finance Director Ed Bean said the development of Assembly Square combined with the promised extensions of the Green and Orange lines through the city will make future budgets stronger.

‚ÄúBetter times are ahead on Somerville’s economic front,‚Äù he said.