ATHOL — “We’re concerned about everything,” said Athol Town Manager Shaun Suhoski when interviewed regarding the town’s financial picture. “This (COVID-19) crisis is nibbling away at both ends of the bone.
“On the expense side, we do have increased expenses — from overtime, medical supplies, personal protective equipment. The unit to disinfect our ambulance so that it’s not out of service for a half-hour was $3,000; a commercial-grade mister is just one example. So, we have the expenses that are unanticipated but necessary.”
In March, as the extent of the crisis was becoming known, Suhoski sent a memo to department heads urging them to keep a tight rein on their budgets and to expend money only on those goods or services that are absolutely necessary.
“Although we’re re-running the numbers — and the Finance Committee and I will look at them again next week — I have confidence we’re going to be able to manage the current fiscal year. We are segregating all COVID-19 costs so that we can account for them down the road as we look at FEMA (Federal Emergency Management Agency) for reimbursement, or the CARES (Coronavirus Aid, Relief and Economic Security) Act funding. The commonwealth did get an allocation of $2.7 billion from the CARES Act only for costs. It does not help the revenue side, but with unanticipated, un-budgeted costs.”
Suhoski said the state and federal governments are hammering out the rules concerning disbursement of CARES Act monies.
“That may cover any deficit spending related to COVID that we have to do,” he said.
The town manager said his real concern is with the approaching fiscal year, which would traditionally begin on July 1 but which is likely to be delayed.
“This is an issue that the town will work through together,” said Suhoski. “This is not one where the town manager says, ‘Here’s what we’re going to do.’ My role is to come up with options, suggestions, recommendations — which I’m working on. But absent some stroke of bipartisanship at the federal level, where cities and towns are covered on the revenue shortfall side, we’re going to going through some tough times.”
He said the town could be faced with the temporary furlough of some workers.
“I really hope it doesn’t get to layoffs,” he stressed. “It’s really going to depend on where the federal stimulus goes, how we are able to slowly ramp up the economy to allow people in their own households to have that discretionary income, which then turns into income for the public entities down the line.”
Suhoski said the town has been losing revenues in several areas, including income from the local meals tax, as well as a drop in the number of building permits, electrical permits, dog licenses, marriage licenses and similar fee-based revenues.
“So, local receipts are down,” he said. “We don’t have any definitive answer from the state, but there are very dire projections on loss of state revenue as compared to when the governor prepared his budget (in January). One model projects a $4 billion loss. So, it would be foolhardy for any local official to think a $4 billion, or even a $2 billion cut, in state revenue won’t somehow impact the local aid account or Chapter 70 aid to the schools.
“It’s just not a pretty picture right now,” Suhoski concluded.
