September 23, 2008 Massive bailout could impact cities and towns Play video

(Danica Pecirep, NECN: Worcester, MA) - Whenever the details of the massive bailout are worked out, the fallout is going to be felt all the way from Wall Street to Main Street.

As congress grapples with whether or not to pass a 700 billion dollar rescue plan many, many are wondering what it all means for them.

From Wall Street to Main Street in Worcester money matters are on our minds. Tuesday Roberta Schaffer - the executive director of the Worcester-based research bureau - weighed in on the potential impact.

The problems with the market are going to have very severe ramifications all the way up and down the line.

Among the local concerns Schaffer points to are a big drop in state revenues...which means less local aid for cities and towns.

If we have reduced revenue that means the manager has to go back to the current budget and this will have ramifications for future budgets.

She says it's likely the downturn will put a big dent in our bank accounts - either through higher taxes or a falling stock portfolio.

Most people today have some involvement- even if they just have a retirement account- almost everyone is in some way invested in the market. Schaeffer says Worcester could be hit hard because of its dependence on institutions like UMass medical school that rely on government funding. Colleges in the area could also feel the pinch.

“We’re very dependent on the colleges- if people feel that they can't afford

While congress battles over a rescue plan that the bush administration says must be passed now to keep the country out of recession - some local residents say it's time for action.

I think we're at a point right now in the economy that something has to be done.