Schools

Consensus Budget Reached With or Without Meals Tax

For the fourth year in a row, there is agreement on the town's budget.

For the fourth year in a row, North Andover selectmen, School Committee and Finance Committee are in agreement on the town's budget proposal.

"And I say kudos to those involved in the process, four years in a row reaching consensus budget," Selectman Tracy Watson said Monday night at the Board of Selectmen meeting.

The Selectmen and Finance Committee are recommending $79,043,441 for the general fund if the is approved at Town Meeting. If the meals tax is not approved, the recommended budget is $79,027, 937.

Find out what's happening in North Andoverwith free, real-time updates from Patch.

The School Committee met on June 2 and approved the budget, which would include $36, 916,601 for the schools -- $37,082,313 for the schools if the proposed meals tax passes.

"Please bear in mind that even with the budget amount provided by the increment of the meals tax, the school budget for FY12 will represent only a 0.26 percent increase over the FY11 school budget," Superintendent Chris Hottel wrote in a statement announcing budget approval. "This is well within the 1 percent growth limits discussed by the Finance Committee."

Find out what's happening in North Andoverwith free, real-time updates from Patch.

A Taxing Dilema

The $165,712 additional revenue that would come to the schools from the meals tax will fund three positions in the special education department that would otherwise need to be cut.

Local resident Rebecca Abbott has submitted an article for Town Meeting that would add a .75 percent tax on all meals sold in town.

Combined with the 6.25 percent state sales tax, that would mean a meal at a North Andover restaurant would come with a 7 percent tax. A family of four having dinner for $100 would pay a 75 percent town meals tax.

Under state law, if the town implements the local option meal tax, 100 percent of money collected for that tax must be returned to the town.

Proponents of the tax point out that more than $241,000 is expected to be raised for the town in FY2012 and more than $400,000 a year after that.

"With cuts expected in our schools, police, fire, library, senior center, youth center, and public works, North Andover needs every cent," "Passing this article will save jobs that are currently planned to be cut in the Fiscal 2012 budget, at a minimal cost to diners."

The idea has been implemented in several nearby communities, all of which have reported no loss of business revenue.

"If North Andover had opted in on this tax last year, we could have realized an extra $413,263," "This number is from the Department of Revenue and is based on gross receipts of our restaurants. And for a town that runs as lean as North Andover, this is a significant influx of revenue."

But selectmen voted not to support the meals tax on grounds that it may negatively impact local business.

"Rather than increase taxes on our businesses, I think it is important that North Andover works to expand our tax base by attracting new businesses, while also building up our existing ones," "Raising taxes on our businesses is the expedient way to generate more tax revenue; but growing our business community, while taking longer, will yield far greater dividends for all of us."

The North Andover Merchants Association, of which Watson is a member, opposes the tax. NAMA member Phil DeCologero, like Watson, worries what a meals tax may do to local merchants.

"When surrounding communities adopted the meals tax increase, they were facing shortfalls that were far more daunting than the one North Andover is facing," "In addition, due to the presence of major roadways, including Routes 93 and 495, our neighboring communities can more easily attract businesses in a way that North Andover cannot."


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