EagleTribune.com, North Andover, MA
Merrimack Valley
Recession fuels more local government consolidations
Published: November 8, 2009
The recession has put new wind in the sails of the push to streamline local government.
As cities and towns feel pressure from flagging local revenues and a forecast of reduced state aid next year, efforts to consolidate resources — particularly between municipalities and school departments — are gaining steam across the Merrimack Valley.
"I think that's where the savings are," Haverhill Mayor James Fiorentini said. "It's not going to save you millions, but it's going to make government a little bit more efficient."
Call it a silver lining amid the program cuts, layoffs and calls for employee pay concessions that have saddled the public sector since the economy soured last fall.
Both Haverhill and Methuen combined once-separate school and city information technology departments earlier this year. North Andover did the same last year.
Haverhill also recently merged its city and school human resources operations, while Methuen Mayor William Manzi has his sights set on the consolidation of city and school purchasing offices.
In Andover, a study exploring a similar IT merger is underway. And soon, with the help of the state, the town and the School Department will look into combining finance operations. They already share purchasing, human resources and maintenance functions.
"This is the next logical step," Andover Town Manager Reginald "Buzz" Stapczynski said.
Stapczynski said the aim is to have both the IT and finance mergers in place by July 1, the start of the next fiscal year. He said he is unsure how much savings will result.
In October, at the suggestion of a resident-led IT advisory committee, the town hired a consulting firm to develop a five-year technology plan. Committee Chairman Len D'Innocenzo said a report due this winter will offer more details on the proposed IT merger.
"I think there are definitely some savings opportunities, but I don't know if there's this big pile of money that's going to be found," D'Innocenzo said. "They're running pretty lean."
In order to pursue finance consolidation, Stapczynski and Andover School Superintendent Claudia Bach have solicited the help of the Massachusetts Department of Revenue Division of Local Services. The division offers cities and towns free consulting services.
While the demand for such assistance has been steady in recent years, Department of Revenue Spokesman Bob Bliss said requests to explore consolidation and regionalization opportunities are on the rise.
"The price is definitely right," Bliss said. "There is a waiting list."
Andover will likely have to wait four months for the state to review its finance operations.
While the effort earned initial clearance from both Andover selectmen and the School Committee, some elected officials want more details before offering their full support.
"The more important thing is it's done right rather than soon," Andover School Committee Chairwoman Deb Silberstein said.
In Haverhill, it took Fiorentini 15 months before his proposal to form the joint human resources department was approved in August by the School Committee and Superintendent Raleigh Buchanan.
Haverhill School Committee President Scott Wood said the two separate human resources departments were combined to eliminate duplication.
Though the joint department is led by city Personnel Director Mary Carrington, Wood said Buchanan still has the final say on all school hires.
He said the School Committee also has a "sunset clause" that will allow them to reconsider the merger at the end of the year.
"We're seeing how it works out and the benefits it provides to the School Department," Wood said.
Fiorentini said the consolidation of city and school IT departments saved taxpayers approximately $80,000 when the School Department didn't have to fill a vacant technology director position.
The mayor has yet to find enough backing for a proposal to combine finance departments.
"What you have to do is figure out where you have a chance of success and go for that," Fiorentini said.
Wood said a finance merger does not have the support of the School Committee.
"There is no duplication of services in that department," he said.
When Methuen created a joint human resources department more than a year ago, Manzi said the city saved $75,000 because a full-time director position was eliminated.
Although no positions would be eliminated in his proposed purchasing merger, Manzi said savings will likely result from a streamlined workflow.
He said he expects to have a proposal to consolidate city and school purchasing offices before the City Council and School Committee within the next few weeks. Initial talks about an IT merger have also taken place, he said.
If the bleak budget projections hold true, Methuen City Councilor Stephen Zanni said those mergers are something the council will have to seriously consider.
"We're going to continue to find some common ground," Manzi said. "In an environment of reduced funding, it is now a matter of necessity."
