HAVERHILL — As the city braces for a possible loss of $1.2 million in state money, Mayor James Fiorentini said he will not ask taxpayers to dig deeper into their wallets.
Fiorentini's budget counted on $2.4 million from the state to help pay the city's annual debt on the old Hale Hospital. The Legislature approved the money, but Gov. Deval Patrick vetoed it last week, leaving only $1.2 million for the city. Unless lawmakers override the veto, Haverhill must come up with the other $1.2 million elsewhere.
Late last week, the mayor said raising taxes won't be considered, but he wouldn't rule out layoffs or cutting money from police, schools or the Fire Department.
If he proposes public safety cuts, he can expect a fight from the City Council, said council President Michael Hart.
"The only think I know for sure is that we can't cut public safety anymore," Hart said, noting the diminished staffs at both the police and fire departments as Haverhill's population and number of homes continues to grow.
Dipping into the city's $1 million reserve account may also be an option, but only for a small amount of the shortfall, Fiorentini said.
"We have to leave some money in the reserves for emergencies and for negotiating contracts with employees," he said, adding that he won't be put in the position he was in when he first took office four years ago, when the city's reserve account was empty.
"The downtown parking garage lights broke, and I was told we didn't have $40,000 to fix them," he said. "The finance director told me there were no reserves and that if wanted to fix the lights, we had to lay someone off."
Haverhill will likely know by the end of the month whether it must cut the $1.2 million from the budget.
State lawmakers most likely have until the end of the legislative session — July 31 — to override the governor's veto. In rare cases, the Legislature can hold special sessions outside of regular sessions for specific purposes, such as considering budget overrides.
Fiorentini said he has contingency plans for bridging Haverhill's potential shortfall, but he's not ready to reveal them.
"I'm planning to give the council options on where to cut, and they'll also be some fee increases," Fiorentini said.
The mayor's $140 million budget proposal, approved last month by the City Council, includes several hundred thousand dollars in new fees. But a proposed increase in housing construction fees worth about $100,000, aimed primarily at developers, was rejected. That proposal will likely be part of the mayor's plan to cover the deficit if the Legislature fails to override the governor's veto, Fiorentini said.
Haverhill owes about $7 million a year in debt for the next 17 years on the former Hale Hospital, which the city sold to a private company in 2001. The old Hale now operates as the privately owned Merrimack Valley Hospital.
Hart called the governor's veto of half of the $2.4 million in Hale aid "disappointing but not unexpected."
"We were fortunate to get what we got, considering the earmarks (spending) that was vetoed for other cities and towns," Hart said, noting that he wrote to Patrick on behalf of the council about how badly the city needed the full Hale amount.
The council awaits Fiorentini's proposal for bridging the spending gap, Hart said.
State Rep. Brian Dempsey, D-Haverhill, and state Sen. Steven Baddour, D-Methuen, both have said they will push to restore the full $2.4 million. Both said it will not be easy, however, as it takes a two-thirds vote of each Statehouse chamber to override a gubernatorial veto.
Dempsey and Baddour also warned Fiorentini not to count on more than the $1.2 million Patrick proposed in his budget.
Asked why he did plan on the $2.4 million, Fiorentini said to do otherwise would have sent the wrong message.
"You can't get money unless you ask," Fiorentini said, "and the fact of the matter is we need it."
Hart and other councilors essentially echoed those remarks when they approved the city budget with the $2.4 million included. On that night, however, some councilors did voice concerns about including money that was uncertain.
"People should be prepared for a financial storm if we pass this budget with $2.4 million (in state Hale money)," City Ryan said at the June 24 meeting "We have to tell the community the lay of the land tonight."
Patrick's state budget proposal included $1 million in special Hale aid for Haverhill, while the Legislature ultimately increased the figure to $2.4 million.
"Had we lost the whole $2.4 million, that would have been real trouble," Hart said.
In a recent interview, Patrick told The Eagle-Tribune that he supports a long-term solution to the Hale Hospital debt drain on the Haverhill budget.
Last week, the governor vetoed $122.5 million out of the $28.3 billion budget lawmakers sent him. The state budget now stands at $28.1 billion.
