NH's Towns and Cities Face Budget Squeeze

Shannon Mullen's picture
By Shannon Mullen on Thursday, January 15, 2004.
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Communities across the state are facing budget shortfalls this winter.

And many are looking to raise property taxes to solve the problem.

In Nashua, homeowners could see their taxes go up by as much as 17 percent.

New Hampshire Public Radio correspondent Shannon Mullen has more.

Nashua city executives say there?s a 15 million dollar gap in the their budget.

Mayor Bernie Streeter outlined a strategy this week he says will help fill that gap.

T3 Streeter
2:52 What we?ll be telling divisions is, you?re not going to be hiring any new people this year, or for the year 05, you?re not going to be able to spend as much as you did, or as much as you want, you?re going to spend exactly what you did in 04.

It?s called level-funding. And Streeter says his department heads have five and a half months to make it work.

If they can?t do it, residents could face a severe tax hike?.anywhere from 11 to more than 17 percent.

4:12 The taxpayer has been heard in this office. They?re saying their taxes are high, we just can?t suffer the same plight that communities surrounding our city are suffering at this point.

One reason cities and towns are suffering is that they?ve lost revenue from cuts in state education aid.

Nashua lost 4 million dollars this year.

That drop, says Streeter, coupled with a 140 million dollar high school renovation project, means his city has to stop spending.

T3 Streeter 3:30
We?re setting the stage now for some severe belt-tightening in our city to get us over the 05 and half of the 06 budget year and then we?ll be back to normal.

O?Hearn 3:58
That?s a fair thing to do, that?s what the state is doing. We?re tightening our belts also. We have a fiscal responsibility to our citizens?

Republican State Senator Jane O?Hearn represents Nashua and chairs the Senate Education Committee.

She says every city and town is facing a budget crunch this year.

But Mayor Streeter places most of the blame for Nashua?s fiscal woes on state aid cuts?

And O?Hearn thinks that?s unfair.

O?Hearn 8:55
I think that?s misleading to the public. I think he should be more vigilant on his own spending that goes on in the city.

Nashua Alderman Steve Bolton agrees.
(T18 -1:35 ? Bolton)
Mayor Streeter has had 4 years to try to develop other revenue sources. 4 years to try and eliminate inefficiencies in our spending. If he hasn?t done it by now he?s not going to do it in the next 5 months.

It should be noted that Bolton ran against Streeter in the last mayoral election.

Nashua is by no means alone.

Concord Mayor Mike Donovan says his city is also getting squeezed.

He?s had to trim his 2005 budget, but he blames part of the problem on property revaluations.

The NH Municipal Association?s John Andrews says towns across the state are feeling the pinch.

Andrews 1:17
Unless you put more $ into the system, it?s like a balloon filled with water, as you squeeze one end, it bulges out on the other end.

Nashua?s Mayor Streeter says he saw this crunch-time coming.

But he thinks he can keep it from costing his city as much as it has his neighbors.

4:55 We just can?t continue to do business tomorrow the way we did it yesterday and still maintain fiscal sanity.

Mayor Streeter has until April to find ways to trim spending.

His Budget Chief says those cuts could include lay-offs.

For NHPR News, I?m SM.

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