Norwood Joins Lawsuit Against Governor Dukakis Over Withheld State Aid-August 29, 1989

For Norwood, the governor’s freeze represents roughly $1.1 million, or 15 percent, of the town’s $7.1 million state aid package.

“We’re trying to send a message to the governor and the state Legislature that they’re balancing the state budget on backs of cities and towns of this commonwealth and it’s got to stop,” said Selectman Gary Lee.

Legal Challenges to the Freeze and Formula

The lawsuit—originally filed by Brookline and now joined by area communities including Sharon, Canton, Hingham, Pembroke, Carver, Hanson, and Plymouth—challenges two major executive actions:

• Executive Authority: It disputes Governor Dukakis’s legal authority to freeze funds after the Legislature unanimously overrode his initial budget veto. Dukakis maintains that state law empowers him to withhold funds if the secretary of administration and finance determines state revenues will fall short of expenses.
• The Allocation Formula: The suit questions the population-based formula used by Dukakis to reallocate cuts—slashing aid by $17.18 per resident across the board. Critics argue that this per-capita method disproportionately harms suburbs, whereas cities and poorer communities rely on state aid for larger portions of their municipal budgets.

Unexpected Local Windfalls Cushion the Blow

Unlike many neighboring communities facing severe fiscal crises due to the withholdings, Norwood has unexpectedly dodged immediate financial disaster. Town financial reviews uncovered enough unanticipated revenue to nearly cover the entire $1.1 million deficit:

• $600,000 in unanticipated additional town receipts from prompt taxpayer payments.
• $300,000 in new tax growth from commercial, industrial, and residential developments.
• $142,000 from a financial settlement with the New England Power Co.

“Fortunately, Norwood is in better shape than most towns in the commonwealth,” Lee noted, emphasizing that the town’s participation is a matter of principle. “We rely as much as anyone else on state aid, but we watch the books. We’ve always been very fiscally prudent. But the message is the same: the governor is passing his irresponsibility onto the backs of the cities and towns, and enough is enough.”

Despite covering the state aid loss, town officials anticipate a minimal tax increase, with the burden likely shifting toward the business sector, according to Selectmen Chairman John Kinnaly. Selectmen will review specific tax rate proposals during a public hearing scheduled for 9:00 p.m. on September 6 at Town Hall.

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Patriot Ledger