If the tectonic plates are moving, as Mayor Edward “Chip” Clancy likes to refer to the budget process, the question remaining now is where are we on the Richter scale?
“This is the most difficult budget since I’ve been here,” Superintendent of Schools Nicholas Kostan said.  “There will be lay-offs, about 150 to 160 people.”
The rising costs in health insurance and energy bills have sent the budget spiraling out of control, and at one time, the deficit stood at $12 million.  But with some clever maneuverings, school closings and student shuffling, the school department and City Hall have managed to slice the budget in half, to $6 million.  No one, however, is patting himself or herself on the back, though.
“We knew at the beginning of the year that it was going to be a difficult time,” Kostan said.  And he was quick to note that Lynn is not the only community dealing with the economic pains inflicted across not only Massachusetts, but the country as a whole.
“If you look at all the economic indicators nationwide, it’s a very volatile time,” Kostan said.  “Oil is at an all-time high, the housing market has collapsed and the war in Iraq is costing billions.  That means there is very little money coming back from the federal level, be it Title 1 or grants. There are problems all over.”
In light of the budget calamity facing Lynn, officials point to Boston, where a $30 million budget deficit is staring down the school department, and neighboring Beverly, where schools are also closing, as examples of a crushing economic climate that has forced every district to reassess and realign their departments.
Lynn is also in the process of closing schools and relocating students.  The Washington School, which has a projected 188 students in the next school year, will be closed. 
Half of those students are from out of district and will be relocated back to their proper district school, with the others being sent to other schools after the department finishes realigning district maps.
The Fallon School will face a similar fate, and like Washington, will find most of its projected students being sent back to their original districts.
“There will be a reduction in programs,” Kostan said.  On the chopping block are the MAST program, and the Career Development Center will see a reduction in size as well.
“Seventy percent of employees in the city are at the schools,” Kostan said.  And the health care crisis that Mayor Clancy is currently spending most of his time battling, has struck the schools hard.  “There has been a $3 million expansion on health care costs alone,” Kostan added.
The energy crunch is also a major thorn in the side of school officials.  For example, according to numbers released in last week’s budget, Breed Middle School is at a whopping $189,031 in electricity costs to merely maintain the level of service that was provided in the last fiscal year.
Lynn Tech’s FY ‘09 electricity needs stands at $461,337 to maintain FY ‘08 levels, and gas at the school is at $217,027.
After the School Committee has had a chance to digest all 72 pages of the recently released school budget, a meeting will be held to discuss any ideas on potential budgetary savings.

Both Mayor Clancy and Schools Superintendent Nicholas Kostan have said they are open to any ideas the committee may have and are willing to explore any suggestions so long as it leads to a reduction in the overall school deficit.