Douglas suffers in state formula; Uneven PILOT compensation adds to town's bleak economy.

Byline: James F. Russell

DOUGLAS -- Unless the economic disparity imposed on Douglas by state monetary decisions change, the town's bleak financial condition, palpable frustration and growing despair will reach a breaking point, local officials say.

The town's financial pinch, however, could be eliminated if it was compensated as are other towns with state land within its boundaries, officials say.

Town officials have complained about the problem for years. They say persistent failure to adequately compensate the community for lost property tax revenue -- related to the nearly 6,000-acre Douglas State Forest payment in lieu of taxes, or PILOT program -- and lagging state aid are major factors creating the grim situation.

The result has been reduced services, a crumbling infrastructure, roads in disrepair and a decimated public school system. Thirty-five teachers have been let go since 2009. The district recently announced plans to lay off 16 teachers to balance their budget for the fiscal year that begins on July 1.

"I would call the despair extremely high and growing. We are at a point now, people saying, how do you expect us to live by your rules?'' Selectman Timothy P. Bonin said in an interview.

"It is outrageous we as a community are cutting things that will turn our schools into nothing more than a prison. ... We've held off as long as we can. At some point it crumbles.''

A review of money payments disbursed by the state's PILOT programs shows Douglas is receiving less, while other municipalities are getting more.

There has been a 30 percent PILOT increase, between 2009 and 2015, to the communities whose land is impacted by the system, including Quabbin Reservoir, that supplies fresh drinking water to greater Boston residents.

However, the state PILOT to Douglas has decreased 23 percent during that time.

According to data from the state Department of Conservation and Recreation, the more than two dozen towns that received the 30 percent average, overall hike, the past six years, includes what the agency calls the Quabbin Reservoir, Ware River, Wachusett Reservoir, and Sudbury Reservoir watershed communities.

Holden, part of the Wachusett watershed is receiving $919,616 this year, up from $767,553 in 2009, a 20 percent jump.

Clinton's PILOT money shot up 58 percent, to $202,726.

The New Salem PILOT jumped nearly 80 percent in six years, from $353,126 to $631,305.

Data provided by the town shows the Douglas State Forest PILOT funds...