Last-Minute Cash Saves 2008 Budget

– Allison Goldsberry

One month after the fiscal year officially began, the city has received an $800,000 cash infusion from the state to help balance 2008’s budget.

According to State Representative Paul Donato, Medford’s request for the money finally passed muster with the Governor and legislature late yesterday afternoon.

The city has been waiting on the money and would have been forced to cut the budget without it. 

Though every cent of the money is so far spoken for, Mayoral Aide Richard Lee said the administration is trying to rely on it as little as possible but won’t know how much of it can be recouped until the tax rate is set in January.

“The mayor’s intent is to use as little as the $800,000 as possible,” said Lee.

The state owes Medford the money for repairs made to the high school’s roof in the late ’90’s and has been reimbursing the city at a rate of $61,000 per year. 

Under an agreement with the state, Medford will get the rest of the money now but will have to pay it all back within four years.  Essentially, Medford is borrowing its own money and then paying itself back.

According to Mayor Michael McGlynn, Medford received $125,000 less from the state in local aid this year, making it difficult to balance the budget amid rising costs and forcing the city to find creative ways to plug holes in the budget.

Medford’s entire operating budget for 2008 is roughly $130 million.