Only five responses from tax-exempt organizations have come in so far, and all have said no to the request for contributions.
Charles E. Cavagnaro III, MD, President and CEO of Wing Memorial Hospital and Medical Centers.PALMER - Wing Memorial Hospital will not be donating $115,000 to the town because it does not have the funds to do so, its president and chief executive officer wrote in a letter to town officials.
Dr. Charles E. Cavagnaro III, Wing's president and chief executive officer, said if the hospital had "suitable operating margins" it would make such a donation. But he said like many other non-profits dependent on state and federal programs for reimbursement, the hospital struggles to remain fiscally sound.
"It would be wonderful if Wing had the additional resources needed to make a payment to the town in lieu of taxes, but as health care reform continues to push against hospitals and other providers to cut costs, it is unlikely that this will be possible anytime soon," he wrote.
Acting Town Manager Patricia A. Kennedy recently sent letters to 25 tax-exempt organizations in town asking for a payment to be made in lieu of taxes, as a way to help the financially-strapped town. The amount requested from Wing was the largest.
As of Friday, four other organizations, Apostolate of the Suffering Inc., Palmer Ambulance Inc., Polish Alliance Youth Camp Inc. and St. Paul's Church also declined to offer contributions. They did not provide explanations as to their decisions. Apostolate was asked to contribute $1,449.56; Palmer Ambulance, $940.91; Polish Alliance, $2,087.97; and St. Paul's, $6,610.69.
The amount each organization is being asked to contribute varies. The amount was calculated using a property's assessed value, and the cost of basic services, which represent 12 percent of the operating budget.
Cavagnaro cited the $3 million in net charity care and direct benefit expenses it provides to the region. He also noted that Wing employs 850 people, making it the largest employer in Palmer.
"By providing stable employment to the people who live in our service area, we aid the local economies in many ways. While Wing may not be providing the town with real estate tax revenue, it is our hope that it is viewed as a vital resource that provides more than comparable services for the town's loss of tax revenue," Cavagnaro wrote.
Town officials are still waiting to hear from the remaining 20 tax-exempt entities: Amvets, Belchertown Land Trust, Camp Ramah, Crossway Church, Western Mass. Diocese, Faith Baptist Church, First Congregational Church, American Legion, Milestone Ministries, M-Pact, New Birth Christian Church, Knights of Columbus, Masonic Hall Association, Roman Catholic bishop, Second Baptist Church, Second Congregational Church, South Central Rehab, SMOC Housing Corp., Three Rivers Chamber of Commerce and Union Evangelical Church.
Bruce Henriques, M-Pact's general manager, said he has to bring the request before the non-profit local cable access station's board of directors. Henriques commended Kennedy for a "creative" idea during tough financial times.
In Springfield, Baystate Health will provide a $250,000 payment to the city in lieu of taxes in fiscal 2012.
The $250,000 pledge is less than half the amount that Baystate was paying annually under its prior five-year agreement that expires June 30.
Baystate, which is tax-exempt, initially agreed to a $500,000 annual payment in lieu of taxes in 2006, as sought by a state-imposed Finance Control Board and then-Mayor Charles V. Ryan. That amount increased by 2.5 percent each year.
The amount Baystate Health pays is slated to drop to $150,000 in fiscal 2013, and $100,000 in fiscal 2014 under the new agreement.
Baystate, however, will keep the amount at $250,000 each year if the city raises $250,000 from other large nonprofit organizations in each of those years, Mark R. Tolosky, president and chief executive officer of Baystate Health, has said.
In Boston, city officials sent out letters to its largest nonprofit institutions this year, seeking to increase payments in lieu of taxes already received from that city's major tax-exempt hospitals, colleges and cultural institutions.
In fiscal year 2010, the Boston program yielded approximately $34 million, including participation from Boston University, Harvard University, Massachusetts General Hospital and Beth Israel Deaconess Hospital, according to a 2010 task force report.
In Springfield, the amount received totals approximately $5.7 million, according to estimates from city officials last year. Besides Baystate, contributors include Mass Power, urban redevelopment corporations, the Springfield Housing Authority.
Staff writer Peter Goonan contributed to this report.