"Every indication is that Cambridge is in much sounder fiscal situation than other municipalities," said Maloney.

Maloney said that the state's fiscal crisis and cutbacks in local aid have not affected Cambridge as quickly as other communities because the city is below the tax levy cap set 10 years ago by the statewide referendum known as Proposition 2 1/2. In addition, Maloney said the city has taken an "overall conservative fiscal approach" to the budget.

Despite the expected increase in property taxes, the city remains $8 million below its levy limit established by Proposition 2 1/2. Because of this excess levying capacity, which allows the city to respond to "unforeseen expenditures" and decreased local aid, city administrators do not expect the city to show major effects from the decreasing state aid until next year.

"We are probably as strong as any other municipality," said DePasquale.

Mixed Reactions

City Councillors, who will approve the budget during a series of hearings set to begin April 18, met the new budget with mixed reaction.

"With four new council members we are going to take the opportunity to take a long hard look at the budget," Myers said. "I don't envison major changes this year but we are going to look at each department...The changes will be made more so next year than this year," Myers said.

Vice-Mayor Kenneth E. Reeves '72 disagreed with Myers. Reeves said he "strongly predicts" that the city will see a increase in spending for the human services department during the budget hearings.

"I think there will be some changes, some significant changes," Reeves said.

Councillor William H. Walsh also said he would like to see changes in the budget, but not in quite the same way.

"It's too high. It needs to be trimmed," Walsh said. "I don't think the council is taking the budget crises seriously."

Objections to New Post

Along with Councillor Timothy J. Toomey, Jr., Walsh said he objected to the creation of a new post of police commissioner, which Healy added to the budget this year.

Walsh said he plans to use the hearings to understand why the budget will increase at all. Walsh said that he expected the hearings to be "active."

"It will be an interesting time, It will be lively," Walsh said.