With local aid threatened due to a reduction in state tax revenue because of the current economy, the town of Wayland is facing a lack of revenue that could lead to potential budget cuts in Fiscal Year (FY) 2011.

Because Wayland’s economy has been hurt by the recession, the town, already running low on money, is not able to collect as much tax money as it otherwise would. Some of the shortfall has been compensated by the federal government’s stimulus package. According to Dr. Gary Burton, Superintendent of Schools, the town has received $675,000 from the stimulus.

Burton says that this money was meant to be used over three years, from FY 09 through FY 11 – last year, this year and next year. Instead, because of the severity of the financial crisis, all of Wayland’s stimulus funds will have been spent by the end of the FY 2010. The Fiscal Year in the towns of Massachusetts ranges from July 1 to June 30. Currently we are in the FY 2010, which ends on June 30, 2010.

In anticipation of that shortfall, the Town Committee has already attempted to boost revenue by increasing bus, sports, and parking fees, as well as introducing a new meals tax that was passed at the recent Special Town Meeting. “Free cash,” excess money from previous budget surpluses, has also been accumulated.

Local aid – general funding for towns provided by the state government – might be reduced as well. Cuts were made in FY 2010, and the Town Finance Committee said at a recent meeting that it expects further cuts during FY 2011. However, Governor Deval Patrick later promised not to cut state funding, saying, “Local communities are the front line of both our economy and our social life and they are struggling as it is.

David Gutschenritter of the Finance Committee was skeptical, saying that “There’s a strong desire in the State House not to [cut local aid], but to rule it out completely, I think, doesn’t make sense at this point given the economic uncertainty that Massachusetts is facing.”

If the state does cut local aid, according to Gutschenritter, the town will look for alternative sources of money. This also applies even if the state does carry out with their promise. “We have to plan for both scenarios, ” Gutschenritter said.

The Finance Committee says it will be able to balance the 2011 budget without asking for an override, even if cuts in local aid are made. To do this, the most important thing to do is to control expenses. “If we need to control all the expenses, the biggest single line item in the budget are salaries and benefits, pension costs, health care, things like that, so that’s where we’d have to focus. If we have to cut expenses, we have to look carefully at our staffing levels,” Gutschenritter explained.

However, reducing staffing is not the first choice, and it’s still too early to tell exactly what might be cut. “We really try to explore all options to balance the budget before we turn to staffing levels,” Gutschenritter said.