Jan 29, 2008 7:41 am US/Eastern
Salem To Borrow Money From State, Keep Teachers
SALEM (WBZ) ―
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Salem Mayor Kim Driscoll has blamed former business manager Bruce Guy for intentionally mismanaging the finances and covering it up.
CBS
Massachusetts Governor, Deval Patrick is coming to the rescue of the City of Salem and its teachers.
Patrick is filing a bill to help Salem avoid laying off teachers midway through the school year.
The measure would give the city the ability to borrow up to 1 million dollars to close its budget gap or spread the deficit over seven years.
Current law bars cities and towns from borrowing in times of deficits.
Last week Salem had planned to begin laying off about 15 teachers and 45 other school workers because of an unexpected $4.7 million deficit.
The city opted to delay the layoffs and instead seek emergency aid from the Legislature.
Last week State Senator Steven Panagiotakos of Lowell told The Boston Globe the Legislature was prepared to approve $500,000 to $1 million in borrowing as a short-term fix.
City officials have closed about $3.5 million of the gap through cuts, layoffs and new revenues.
They say the remaining gap can only be filled by personnel layoffs or through borrowing.
The city had already raised enough money to save at least 10 teaching positions, through contributions from private donors.
Salem police have also opened an investigation into the deficit.
Salem mayor Kim Driscoll has blamed former school department business manager Bruce Guy for intentionally mismanaging the finances and covering it up.
Police plan to speak with Guy and others to see if any laws were broken.
Guy has not commented publicly.
District officials said they don't believe Guy stole money but that it was a case of an accountant only giving the district good news and hiding or deceiving the council and board about the bad news.
Salem faced similar problems because of a budget deficit just two years ago.
In 2006, nearly 40 teachers, counselors, aides and custodians were laid off and the hours of several other staff members were cut in order save $1 million. They were facing a $3.5 million budget deficit at the time.
If you'd like to donate, you can make out a check to the Salem Education Foundation and mail it or drop it off at Salem City Hall, 93 Washington Street, Salem, MA, 01970.
You can also donate on-line by clicking here.
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