LAWRENCE — Charging the School Department for crossing guards, police officers posted at schools and building maintenance are just a few ways the city's finance director believes he can shrink a $9.5 million budget deficit.
"We are not trying to make money off the schools. We are just trying to recapture our costs for providing those services," director Mark Andrews said.
Andrews also thinks he can close the deficit using surplus school building funds, adopting an electronic bill payment system and collecting $900,000 in federal stimulus money.
He took umbrage at recent allegations that he is "disengaged" from the city's budgeting process and more focused on a job search.
City Council President Patrick Blanchette took aim at Andrews after he was out sick Nov. 4 when councilors met to talk about the lingering budget deficit.
Blanchette blasted Andrews for missing a succession of budgetary meetings and said he was going to call the state's Department of Revenue himself to get some answers.
Despite his absence, Andrews, who has unsuccessfully applied for several municipal jobs across the state, said he continues to work closely with Lawrence officials and the department.
"I try to be as flexible as I possibly can and work with all of the city councilors," Andrews said.
DOR officials tell him "just keep doing what you're doing and stay in touch," he said.
But after city councilors approved the $80.1 municipal budget June 30, the department has written to Lawrence officials twice, warning them first of a $10.9 million deficit.
Then, last month, after councilors took emergency action, DOR notified the city again, saying the deficit is now about $9.5 million.
The department warned that if the deficit isn't "cured," the city's tax rate cannot be set in December and tax bills will not go out by Jan. 1 — affecting "city cash flow, proving disruptive to the city and those it serves."
Despite the warning, both Andrews and City Assessor Alex Vega said this week they are optimistic the tax rate will be set next month and first-quarter bills will go out on time.
But Blanchette, who said he spoke with DOR Deputy Commissioner Robert Nunes, is still concerned.
"That $9.5 million is a true number. And I want to bring that back to the councilors," Blanchette said after speaking with Nunes.
As for Andrews' plans to reduce the deficit, Blanchette said he's not convinced it will work.
"I don't know how true that plan is. We have to keep in touch with DOR because I am hoping we are able to approve a tax rate. That's a tough thing for a new council to have to come and take votes that were left on the table from the previous council," he said.
Andrews' deficit-reduction plan relies, in part, on the following:
- $1.3 million from a school building bond fund created for the construction of the new Lawrence High School in 2007.
- $1 million in School Department money to offset the cost of posting police officers in city schools, crossing guard salaries and building maintenance expenses.
- $800,000 in savings associated with using an electronic bill payment service. The city would recoup money through the automatic payments and not have to endorse checks, stuff envelopes and pay for postage.
- $2.5 million in health care insurance savings and $900,000 in federal stimulus money.
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