Danvers Freezes Hiring, Cuts Benefits To Balance Budget

DANVERS, MA — Danvers finance officials are proposing a hiring freeze, cuts in benefits for town workers and reduced capital expenditures, among other measures, to balance the budget for the fiscal year that begins July 1.

Selectmen are scheduled to begin discussing the budget Thursday before it is sent to Town Meeting for final approval next month. In addition to anticipated cuts in state aide, local officials are projecting a 20 percent decline in hotel and meals taxes, a $50,000 decline in permitting fees and a 10 percent decline in motor vehicle excise taxes.

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In a note to selectmen, Danvers Town Manager Steve Bartha signaled more severe cuts may be needed once the town gets a clearer picture of the impact the coronavirus crisis will have on local and state funding. Bartha said the budget proposal selectment and town meeting are considering is a "middle case" scenario.

"More severe cuts, resulting in either measurable service or workforce reductions, have been delayed until better information becomes available in the months ahead that would deem these actions necessary," Bartha wrote.

Last month, Board of Selectmen Chairman Dan Bennett said the town is trying to reschedule meetings, leading up to the rescheduled town meeting on June 15 at a time and location to be announced. The tentative schedule is as follows:

• May 14: Selectmen review budget
• May 15: Selectmen budget review continues, if needed
• May 20: Finance Committee budget review
• May 21: Finance Committee budget review continues, if needed
• May 26: Selectmen review town meeting warrant
• May 28: Finance Committee reviews town meeting warrant
• June 15: Annual Town Meeting

The state, which supplements local and school budgets, has lost wage tax revenue from the 689,000 jobs that have vanished since the start of the pandemic, as well as lost sales tax revenue from closed, non-essential businesses. That forced the state legislature was to scrap a budget process that began in December, leaving local governments in limbo. State lawmakers are hoping federal money could make that process easier.

Read Bartha's complete budget proposal.

More Coronavirus Coverage On Massachusetts Patch:

• 'The New Normal': MA Details 4-Phase Approach To Reopening State
• MA Small Business Hit Harder Than Most By Coronavirus Shutdown
• What MA Businesses Could Reopen In Phase 1
• Coronavirus Case Counts For Every Massachusetts Town (Updated May 6)

Dave Copeland writes for Patch and can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).