By George P. Hassett Expect layoffs and fee increases as city officials grapple with an $8.1 million budget gap, said Mayor Joseph A. Curtatone last week. Curtatone said some city departments will have full time staff reduced to part time and some work will be outsourced to save money as the city deals with rising health care costs and diminishing state aid. "This is not a spending issue, this is a revenue issue," Curtatone said at a press conference last week in his office.

Curtatone said he does not expect to layoff teachers or police officers, but said six new officers slated to join the department this year will likely be delayed.

"There are those who say we should slash, burn, cut, cut, cut," he said. "But we're not going to cut our way out of this problem. Any idiot can cut. We have to be bold, we have to be courageous, we have to show leadership."

Health care costs increased 21 percent last year. All revenue from property taxes was exceeded by the $37.8 million tab for health care, he said.

Curtatone said the city has received little help from state legislators in curtailing health costs. Insurance costs have tripled in 10 years.

"We're getting no relief from the legislature. There will be no profiles in courage on health care costs," he said. "The state can't give us revenue, but they can give us the ability to control costs."

Curtatone suggested cites be allowed to join the Group Insurance Commission and allow city employees to pool with state employees. "That tool would save Somerville alone $9 million," he said.

Curtatone said cuts would not endanger the reconstruction of the East Somerville Community School, severely damaged by fire in 2007. However, he did say "everything is on the table, including a debt exclusion or a major tax override."

Aldermen will begin deliberating on the budget this month.