FALSE STATEMENTS and MISLEADING CLAIMS DEBUNKED

MISLEADING VOICES CLAIM THAT THE ACTON VOTERS GROUP PLAN WILL CHANGE BUDGETS THIS YEAR. True?

FALSE! No changes will be made to approved budgets this year. The only change will be using $2.4 million in excess reserves to give taxpayers a break. This is a one-time benefit. (But we do want to signal our town boards to rein in spending.)

MISLEADING VOICES CLAIM THAT THE ACTON VOTERS GROUP PLAN WILL FORCE A GENERAL OVERRIDE EARLIER. True?

FALSE! An override will only occur if town officials continue to spend as if there is no recession and money is no object. Deficit spending will result in an override. That choice is ultimately up to town officials, but Town Meeting and voters at an Override ballot will ultimately have to approve of the decisions they make.

MISLEADING VOICES CLAIM THAT AVG WILL SPEND DOWN OUR RESERVES IN FUTURE YEARS. True?

FALSE! We believe in preserving the reserves at DOR recommended levels, which is 3-5% of our annual budget. Our effort will retain more than enough reserves. In future years, there is no need to spend these reserves to fund operations and we feel voters will vigorously oppose such a use.

SCARE TACTICS CLAIM THAT THE AVG PLAN WILL RESULT IN LAYOFFS. True?

FALSE! No budgets will be changed this year. Town leaders can easily balance future budgets with the town's expected increase in revenues in the next couple of years without layoffs or using reserves, if they so choose. For example, if spending growth is kept to a reasonable level, one can balance the budgets and preserve reserves without layoffs.

MISLEADING VOICES HAVE CHARGED THAT THE AVG PLAN MEANS WE WON'T BUILD A SENIOR CENTER. True?

FALSE! The AVG plan is the only proposal to actually retain enough reserves to be able to invest in capital without a capital override, if the town so chooses. But like negative campaigning, scare tactics may seem to work but don't believe them.

In the case of a Senior Center, such a project, if built from scratch, will most likely require a capital override anyway. So talk of using reserves to offset a tax increase is really not germaine.

MISLEADING VOICES HAVE CHARGED THAT THE AVG PLAN IS IRRESPONSIBLE. True?

FALSE! The AVG will keep taxes flat this year without changing any current-year budgets. What is irresponsible is to plan on using reserves on recurring operations, which is exactly what the ALG 3-year plan proposes. The AVG proposal would return tax money to taxpayers, while preserving more than 5% for town reserves. That is fiscally responsible and in line with DOR recommendations. (CLICK HERE FOR DOR SUMMARY PAGE.)

MISLEADING VOICES CLAIM THAT THE TOWN WON'T HAVE MONEY FOR ALL THE PROJECTS PLANNED IF THE AVG PROPOSAL PASSES. True?

FALSE! The Acton Voters Group does not approve of spending reserves on recurring operations, so adequate reserves would still be available for emergencies or prudent capital projects in the future. And besides, the AVG plan does not "spend" the reserves. It returns taxpayer dollars to the taxpayers who paid them (big difference).

Should the taxpayers wish to support a future capital project, the town is free to ask, and there have been dozens of worthwhile and well-documented capital projects approved by Town Meeting or the voters.

MISLEADING VOICES ARGUE THAT WE COULD ACCOMPLISH THE SAME GOALS IF WE JUST WAIT UNTIL NEXT APRIL'S TOWN MEETING. True?

FALSE! First, taxpayers can only return tax money this year if they act immediately before the tax rates are set later this Fall. Second, and more importantly, we need to send a signal to our town officials that we won't allow what amounts to deficit spending in our operating budgets any longer. Timing is critical because most of our town union contracts are being negotiated RIGHT NOW and the school contracts will be renewed NEXT YEAR. Now is the perfect time to let our officials and negotiators know that we should not commit taxpayer funds to unaffordable expense increases that can only be funded through large overrides every few years.

MISLEADING VOICES CLAIM THAT THE "ACTON LEADERSHIP GROUP (ALG)" PLAN WAS APPROVED AT TOWN MEETING. True?

FALSE! The “Acton Leadership Group” is not a legally constituted body, and as such operates outside of the laws of the Commonwealth. There was never a motion at any Town Meeting which approved their plan.

MISLEADING VOICES CLAIM THAT THE ALG 3-YEAR PLAN CAREFULLY BUDGETS CAPITAL PROJECTS. True?

UTTERLY FALSE! The ALG 3-year plan has NO CAPITAL PROJECTS listed. The Selectmen have a list of many potential projects and they were considering a CAPITAL OVERRIDE possibly this or next spring to fund a host of those projects. A capital override was not disclosed at the April, 2008 Town Meeting. If you wonder why not, then read excerpts from some of the ALG minutes from last spring HERE.

Since a capital override clearly seems planned by town officials, why are some complaining that they need all of the reserves for capital? Do they really need it for operations? When you read the ALG Plan, you can clearly see reserves funds being directed to support operations. COMPARE THE Acton Leadership Group Plan and the Acton Voters Group alternative HERE.

MISLEADING VOICES CLAIM THAT WE WON'T HAVE MONEY FOR CAPITAL IMPROVEMENTS IF ACTON VOTERS GROUP'S MOTION PASSES. True?

FALSE! The town has many, many resources that aren't all in "reserves." There are many sources of money...from developer gifts to end-of-year surplus funds; from school programs that generate profit like Community Ed to town programs that generate profit like the Ambulance Fund. For example, the town recently negotiated a $900,000 payment from a Concord developer for projects like sidewalks.

The Acton Voters Group certainly does not object to using reserves for one-time capital projects. Retaining reserves for projects of this type is one of our goals! In fact, we believe that money reserved for large projects should probably be held in a Stabilization Fund until it is needed, just so it can't be used by spending advocates. However, some recent capital projects have been bonded without a clear strategy for repayment. In fact, the Acton Leadership Group has talked often of asking voters for a Capital Override in the Spring of 2009 to take over bond payments that are now inside Proposition 2 1/2. This would raise everyone's taxes after the spending decision has already been made and the town has committed to the long-term bond. Do you think that is appropriate?

MISLEADING VOICES CLAIM THAT THE "ACTON LEADERSHIP GROUP (ALG) PLAN" IS FISCALLY RESPONSIBLE. True?

FALSE! There are three major deficiencies in the ALG Plan.

First, deficit spending, which uses non-recurring revenue for recurring operations, is always fiscally irresponsible. See what the Commonwealth says about it at the DOR website. A summary of their position on using one-time revenues is HERE (CLICK HERE FOR DOR SUMMARY PAGE.)

Second, besides deficit spending, the ALG Plan shows the town will use up almost all reserves in just three years (From about $8 million to $1 million.)

Third, the ALG Plan also predicts a FY2012 budget deficit which can only be made up by "either a tax increase or cuts in spending." If you know the town's history of cutting spending, you can be quite sure that this will lead to a general override to make up the difference, which is now projected conservatively at $2,365,000 (other ALG plans have shown this deficit as high as $4.4 million or more.)

Taken all together, the Acton Leadership Group 3-year plan is a risky one which guarantees the need for a general override in three years.

In this economic climate, passing an override is not a given. So rather than budgeting responsibly and having truly balanced budgets, the ALG Plan deficit spends and then literally "rolls the dice" with the voters. This is not good financial planning.

Compare the two plans (ALG Plan versus Acton Voters Group alternative) HERE.

MISLEADING VOICES CLAIM THAT WITH UPCOMING FISCAL UNCERTAINTY, THE TOWN NEEDS THE RESERVES MORE THAN THE TAXPAYERS. True?

UTTERLY FALSE! Taxpayers are in much more danger, as they have no guaranteed source of income. The town has a guaranteed increase in revenue each year of at least 2.5%. This is true even when property values decline. The town is not going to become insolvent no matter what the economy does. And in a true emergency, the town can always ask the voters for an increase. Most taxpayers don't have that option.

Should the economy get worse and the town face a revenue shortfall or unexpected increase in expenses, it will need to find long-term solutions to these problems. Using reserves would not be a long-term solution.

THE GROUP "PRESERVE THE RESERVE" IMPLIES THAT THEIR PLAN WILL IN FACT "PRESERVE THE RESERVE." True?

COMPLETELY FALSE! Their plan clearly spends the reserve over the next three years. It is shocking to claim otherwise. If you'd like to see the difference in using reserves between the Acton Voters Group and "Together for the Future of Acton," CLICK HERE.

MISLEADING VOICES CLAIM THAT THE AVG PLAN WILL FORCE A GENERAL OVERRIDE EARLIER. True?

FALSE! The only reason for a future general override would be if the ALG spending plan goes forward. Town officials and the spending boards can choose instead to have more modest budget growth and avoid cuts or overrides. Budget reductions do not necessarily mean layoffs or cutbacks. For example, the town could easily save millions by controlling the rate of spending growth from 6.3% to 4%.

Even if the "ALG Plan" is followed, the Acton Voters Group wants to use funds from the NESWC reserve to reduce taxes. According to the ALG Plan, NESWC is reserved for "capital." Clearly, that is either misleading or false if it is now claimed that using NESWC to reduce taxes will affect the timing of a general override. That would only happen if substantial NESWC monies were funding recurring expenses. Which is it? Is NESWC for capital or operating budgets? Our opponents clearly are trying to have it both ways.

If our opponents are trying to make the case that we will need a capital override sooner, they must have forgotten the plans they discussed just a few months ago at several ALG meetings to have a capital override as early as the Spring of 2009. Click Here.

MISLEADING VOICES CLAIM THAT WE SHOULD HOLD ONTO ALL RESERVES BECAUSE OF POTENTIAL DROPS IN STATE AID. True?

FALSE! If state aid (a recurring revenue source) actually drops, then we need to cut spending in reaction. Reserves are intended for real emergencies, and using them to support operations is NEVER a good idea. But town officials clearly don't believe state aid will fall. In fact, they are assuming increases of 10% or more in certain state aid revenues for the next two years.

SPENDING ADVOCATES SUGGEST THAT WE SHOULD SIMPLY TRUST TOWN OFFICIALS. True?

TRUE, that is their suggestion, but is it the right thing to do in this case? At this Special Town Meeting, town officials will present a "united front" which opposes the tax reduction article. But are town officials looking at all the facts and are they correct in their position?

THE ACTON LEADERSHIP GROUP SPREADSHEETS CANNOT ACCURATELY PREDICT BUDGETS YEARS INTO THE FUTURE . True?

TRUE. Budgets are highly volatile. But they are good for making policy decisions when you can spot trends, like disappearing reserves or future overrides.

Predicting the future may be difficult, but looking in the past is not. We don't have to look far back to remember how the strategy of using reserves to fund operations has recently failed Acton. CLICK HERE for a brief history of how deficit spending led to a large $3.8 million general override just three years ago, and how the tax implications of recent overrides have affected Acton's tax rate, which remains one of the highest in the Commonwealth. CLICK HERE for Acton's tax rate compared to 11 comparable communities.

False Claims Rebutted, Part 2.