Seekonk's Backdoor Override

Allow me to set the stage.

In December of 1999 the town of Seekonk passed a debt exclusion to cover the cost of two construction projects. One project was for Seekonk High School. The other was for the Martin Elementary School. The grand total of these two projects was somewhere around the 22 million dollar mark.

Now fast forward to June 2006. Seekonk residendts failed to pass a proposition 2 ½ override that would have increased to property tax limit to cover the cost of funding the North Elementary School. The result of the failed override attempt meant that North School was shut down, and multiple teachers we laid-off.

Fast forward again to November of 2006. The Town Of Seekonk mysteriously discovers that it has a budget surplus of about 1.2 million dollars. Some argued that this meant that North School did not need to shut down, and that the town leadership jumped the gun, or had used nothing more than scare tactics. That suggestion is debatable, however this money did allow for a lot of teachers and previously cut programs within the Seekonk School Department to be reinstated.

So where did this money come from?

Sometime in 2006 the Town of Seekonk began getting payments from two grants that were issued to cover 70 percent of the cost of these two projects. The amount? You guessed it! A little over 1.2 million dollars, a yearly payment that will be paid until 2023/2024. The payment schedule is as follows:

Martin School Construction Project:

Payment Schedule:

2006 to 2008: $403,518.00 per year.

2009 to 2024: $436,957.00 per year. (actually drops a dollar a year for the last 5 years)

Grand Total: $8,201,861.00


Seekonk High School Project:

Payment Schedule:

2006 to 2008: $852,951.00

2009 to 2023: $854,726.00 (payments drop one dollar for last 5 years)

Grand Total: $15,379,737.00

In FY09 Seekonk will owe a total of $1,802,673.75 on the loan. The town will receive at total of $1,238,262.00 in grant money bringing the Net Debt down to $564,412.00.

Now you would think that the Levy Limit on the debt exclusion would only need to cover the Net Debt. Think again, I have confirmed through the Seekonks Finance Director that the taxpayers are charged for the Total (Gross) amount that is owed and the 1.2 million dollars in grant money is counted as revenue for the town.

Three Things:

First, the taxpayers are being screwed, and this will also tie into my third point.

Second, the Town of Seekonk is supplementing its budget with money that is going to stop coming in 2023 and 2024. This means that in 2025 the Town will automatically be 1.2 million dollars in the hole. But what does the current leadership care? They will be long gone by then and it will be someone else’s problem.

Finally, most of these projects that require debt exclusions are pitched to us as the amount they propose are the highest it will be. The Senior Center is a prime example. The committee that is overseeing that project has said that the $44.00 per year, per household, is the max amount because they are seeking grants and other forms of funding. I’m not saying they are being dishonest because they do not set the tax policy, the town leadership does. But based on what I have just written, do you think we should believe any official when they say that grant money will take a chunk of the cost away? It may take a chunk of the cost off of the project, but it is certainly not going to lessen the money coming out of the tax payers pockets.

I know Seekonk is hurting for cash. But this is dishonest when the taxpayers are lead to believe that our leaders are only going to tax us what they need to. It is also a foolish to count a temporary payment as revenue. It’s not revenue and 1.2 million dollars is a large deficit to make up for any town, in any time period. At the very least this money should be put into a rainy day fund, or a stabilization fund. Think about, if the town had sucked it up for one year and not bought new fire trucks and police cars, or the long list of “capital items” that were purchased; we could have banked that money and paid cash for a new senior center.

Why can't we get leadership like this?

Our new President Barack Obama ordered a pay freeze for top aides making $100,000 or more! http://www.politico.com/news/stories/0109/17750.html

As much as I have problem with most of Mr. Obama's policies, the man can take a leadership role. What is the problem with our "so called" leaders at the State House! Oh, they do not have full time jobs, so they need the money. They do not get enough from a pension, so they need the money. They do not get reimbursed enough for gas, travel, or buying the latest edition of the New York Times! They need the money.

The Massachusetts House leadership is showing the country that they do not get it. We live in a state where the Democratic leadership turns a blind eye to the outside world. They know what is best for our State. And that is the reason why we have an increasing budget deficit. WAKE UP!

D'Amico is a sham

D'Amico asking legal counsel about not taking the bonus pay raise is bogus. Since when has Beacon Hill followed its constitution? I bet he has given little if any of his $60K a year salary to charities in his district. He should give the 5.5% or over $3K raise to the charities as well as another $3K from his already existing salary. He gets mileage, plus medical, plus other money for attending sessions. He needed a job and that is why he probably ran. He has probably never earned so much money. His son has a free ride to Brown University as well. I'm sure his asskissing of the school department over the years didn't hurt in precurring good grades for the kid and ultimately the free tuition to Brown.
People have inferred that he is not well liked at all on Beacon Hill, either by DiMasi or the Governor. He has no allies or power up there.
He was on a kick to get the studio in Plymouth turned down and to scare away film and TV in MA. Maybe he was on his high horse so they would pay him off to back off? Either way, he has done little if anything to help his communities. Maybe he will back another 2 1/2 override. He suggested it in Rehoboth. He is a socialist who never made it in business world and now wants business to pay for his failures.

D'Amico has an Idea!

After taking a beating by his constituents last week, the man with all the ideas, Representative D'Amico requested an opinion by the House legal counsel to delay the 5% pay raises for legislators . http://www.thesunchronicle.com/articles/2009/01/14/seekonk/4233143.txt

While we can give credit to the Rep for such a novel idea, the fact is he would have never conceived it before last Monday night. For him to also know that it was long shot, gives one to wonder why he bothered in the first place? This must be D'Amico's version of leadership.

Now, what's the next long shot idea that the Rep will come up with to keep his pay raise? Whatever it is, Jim Hand of the Sun Chronicle will love it!

D'Amico could not dodge his constituents!

Quoting the Seekonk Star Jan 10, 2009 story... question was asked to Mr. D'Amico if the legislature had considered cutting their salaries in the face of a looming $1 billion budget shortfall. His response to the reporter was the woman was“speaking in generalities” and not to “this issue".
http://www.eastbayri.com/detail/81556.html

What? How much closer to the issue do you want it to be Mr. Rep? To make matters more insulting was the fact that you knew you were getting a raise. What, $60,000 is not enough? Did we ask you to take this job? On top of your pension, gas mileage, stipends and all the little goodies that come with being a Rep. And to say the next term "we won't hear from you whining." What makes you so sure that you'll even have the job then? Your constituents want results, not someone who thinks he should be dodging questions!

Your November 20008 "Legislative Update" tells us that you "advocated that we spend less and put more money aside for tough economic times." How do explain voting to overturn Governor Patrick's "cost cutting" bills. Your fight against corporate tax loopholes says that in 2004 (when times were good) paid just the minimum corporate income tax of $456, per shame! It's now 2009 and companies are closing or laying off people. Some are even leaving the State! Where are you going to make up that shortfall? With the Telecom tax loophole you ran on two years ago?

The State Legislature under your (you voted for him Wednesday) leader DiMasi, were warned back in the spring of 2008 that bad times were ahead. But no, one of the most irresponsible budgets in State history that you and your leadership passed accelerated the downturn on the economy here without the help of Washington.

Think smart and look ahead Mr. Rep. Your job may not be looking for you 2 years from now!