Link to November 8 Boston Globe article, "Despite fiscal ills, towns are saving up".
Excerpt: Cities and towns across the state are diverting large sums of money to “rainy day’’ accounts even as they lay off employees and make deep cuts to schools and services, girding for what many believe will be a long period of austerity.
Municipal leaders give a variety of reasons — cuts in state aid, anticipated increases in health care costs, dwindling federal stimulus funds — but the financial stockpiling is also a signal they fear the funding enjoyed before the financial collapse will not return anytime soon.
“This is the new normal,’’ said Mayor Dean J. Mazzarella of Leominster, which set aside $3 million this year while it also made sharp cuts that included layoffs. “And we need to adjust.’’
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