To the editor:
It is our goal as elected leaders in this community to provide taxpayers with accurate detail of state aid that Gloucester will lose if voters decide to repeal our state income tax. Eliminating the state income tax would reduce revenue by 40 percent, cutting the state budget by $12 billion. In addition, it must cover a portion of Medicaid spending and must meet the state constitution's requirement for funding education. The law requires the state to keep paying debt service on its bonds. Because of these legal mandates, the Massachusetts Taxpayers Foundation estimates that there would be across-the-board cuts of 71.1 percent. (1)
As a resident, how will these estimated state aid cuts impact Gloucester?
State Aid Estimated Cuts in Aid (2)
EDUCATION
$6,204,130 $4,342,891
GENERAL CITY GOVERNMENT $5,411,625 $3,788,138
TOTAL ESTIMATED CUT IN STATE AID
$8,131,029
As you can see, state aid cuts for Gloucester will approach $9 million. Not only will the budget cuts be severe, this legislation will take effect Jan. 12, 2009, halfway through our fiscal year.
City services and education would have to be funded somehow because these services are necessary. We, as citizens, expect that our children will be taught, our city will be safe, our streets will be pothole - free, our 911 system efficient, our elderly and young children cared for, and our trash collected. The savings, if we eliminate state income tax, is minimal based on the hardships we will experience due to these cutbacks.
According to the Massachusetts Taxpayers Foundation, eliminating state income tax will have marginal gains for the population in the lower 40 percent income earners in the state. The lowest 21 percent of earners will save an average of $53 per year and the next 20 percent will save an average of $577. The average income tax savings for those earning less than $50,000 (65 percent of taxpayers) is $850. By contrast, those who earn more than $100,000, on the other hand, would reap an average $16,295 if Question 1 passes.
If Question 1 is implemented, Gloucester's municipal infrastructure, programs, and services all in some way will be affected unless voters choose to raise local property taxes significantly to offset State Aid cuts.
We encourage you to exercise your right to vote Nov. 4 and respect your personal beliefs and choices. However, we hope that this information will help you understand why all members of Gloucester's School Committee and City Council are voting no on Question 1.
(1) Full report available at www.masstaxpayers.org.
(2) The cut in education funding will come from the reduction in Chapter 70 plus Gloucester School District's share of the cut in "general government state aid." The data has been taken from state Cherry Sheet documents.
Mayor Carolyn A. Kirk,
Gregory P. Verga, Bruce H. Tobey, Amy-Beth Healey, Sefatia A. Romeo, Valerie H. Gilman, Philip J. Devlin, Nancy B. Harrison, Joseph A. Ciolino, Steven A. Curcuru, Michelle M. Sweet, John A. "Gus" Foote, Melissa Joy Teixeira, Sharon A. George, Jason Grow, Jacqueline A. Hardy
Gloucester city and school officials
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