The economic news continues to be dire, with stock market turmoil, major layoffs announced daily, and State budget cuts announced and more to come. As bad as the news has been, many are predicting that worse news is coming as companies face significant earnings declines.

In these difficult economic times, Acton leaders need to give voters clear choices on the budget this year, particularly at April Town Meeting.

Acton needs to offer a balanced budget option for FY10, a budget that does not use any reserves for operating expenses. Also, the voters deserve to see a clear three year plan to get a picture of what is in store. Finally, Acton needs to make clear its collective bargaining situation since personnel costs account for about eighty per cent of the budget, and the recent history of generous increases in benefits and raises has to be reconsidered.

Acton Voters Group has analyzed the Acton Leadership Group’s (ALG) three year plan as presented at the recent Special Town Meeting, and has found that plan to be faulty.

It assumes that state aid will increase each year when talks of cuts permeate the newspapers.
It assumes that “New Growth” will continue each year when the business news is filled with stories of housing industry slow down and developers having trouble getting credit.
It spends our reserves to risky levels, far below levels of comparable towns.
It assumes housing prices will recover in a year or so when no one else is predicting that at all, given the state of the credit markets.

Most importantly, the ALG three year plan shows the need for an override in three years. There are no plans to take action now to avoid this divisive and extremely risky action.

Where is the plan to control spending?
Where is the cost reduction plan?
Why is the plan to expand budgets by 5.7% average each year?

Acton needs a more prudent approach in these fiscally challenging times. The “business as usual” plan presented to the voters on October 2nd is not prudent and will hurt many of Acton’s citizens.

In particular, many Actonians are hurting because housing values are declining. Many are hurting because their modest investment portfolios are being dramatically reduced. Many are hurting because unemployment is increasing and some have been laid off already, and others will be.

Acton needs to begin this budget cycle with a more prudent philosophy. First and foremost, voters need to have a choice to enact a true balanced budget at April Town Meeting, one that protects the reserves and does not spend them to cover deficits for recurring expenses.

If you would like to hear more of this discussion, check out the ActonForum.com website.

Clint Seward is a 20+ year Acton resident, and Chair of Acton Voters Group

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