The Massachusetts Municipal Association this afternoon issued the following alert related to the Senate’s proposed budget.
SENATE BUDGET PANEL RELEASES FY 2013 BUDGET
Proposed Senate Budget Sets Local Aid as a Top Priority
Senate Plan Supports Key Local Aid Accounts:
• Guarantees Funding for Unrestricted Municipal Aid at $900 Million, Adding $65 Million to the Base Cherry Sheet Distribution
• Adds $34.7 Million to Chapter 70 (above the Governor’s budget) to Guarantee $40 Per Student Minimum Aid for All Cities, Towns and School Districts, and Fund Target Share Aid
• Fully Funds SPED Circuit Breaker by Adding $29 Million
The Senate Ways and Means Committee today released its proposed state budget for fiscal 2013, embracing most of the local aid increases adopted by the House of Representatives last month, and adding additional funds to major accounts. Senate President Therese Murray, SW&M Chairman Stephen Brewer and all members of the Senate budget committee have proposed a strong budget for cities and towns that provides approximately $130 million more in local aid than the budget proposed by the Governor in January.
The Senate Ways and Means Committee’s proposed budget significantly improves funding for local aid when compared with the Governor’s budget submitted in January.
Please click here to download a copy of the MMA’s statement on the Senate’s proposed budget.
You can link to an on-line copy of the Senate Ways and Means Committee’s budget by clicking http://www.malegislature.gov/Budget/FY2013/Senate
Specific Unrestricted General Government Aid and Chapter 70 aid distributions by community can be found in Section 3 of the budget in the “Local Aid†tab.
Here are the highlights:
• Guaranteeing the $65 Million Unrestricted General Government Aid Distribution in the Base for Fiscal 2013 – The Senate Ways and Means Committee budget funds the UGGA account at $900 million, increasing the up-front appropriation on the Cherry Sheet by $66 million. The Governor proposed level-funding UGGA at $834 million, and providing a later supplemental distribution of $65 million if the state ends fiscal 2012 with a surplus. But with fiscal 2012 state revenues coming in below expectations, the $65 million is not guaranteed, and communities wouldn’t know what funding, if any, would result until October, making it impossible to include the funds in fiscal 2013 operating budgets. Senate leaders want to make the $65 million permanent and add it to the base so that cities and towns can make full use of the funds for ongoing operations in their fiscal 2013 budgets. In writing the budget, the Senate budget committee rounded the account up from $899 million to $900 million, a $1 million increase above the amount approved by the House last month, which will explain why the distribution amount in Section 3 will be slightly higher in the Senate’s proposed budget than in the House. Overall, both the House and Senate have heard local officials, and have fully embraced the need to guarantee the full municipal aid distribution in the budget.
• Fully Funds the Special Education Circuit Breaker at $242.2 Million, an Increase of $29 Million – The SW&M budget would fully fund the SPED Circuit Breaker at $242.2 million, an increase of $29 million above fiscal 2012 and the Governor’s proposal for fiscal 2013. This is a major step, and a core aspect of the Senate committee’s local aid proposals. The Governor had proposed level-funding the account at $213 million, and the House provided an $8.5 million increase.
• Increases Chapter 70 by $37.4 Million (above the Governor’s budget) to Guarantee Each Community and School District a Minimum Increase of $40 Per Student – The Senate budget committee’s plan would provide $37.4 million above the Governor’s proposed $145.6 million increase in Chapter 70 in order to guarantee that all cities, towns and school districts would receive an increase of at least $40 per student above fiscal 2012 Chapter 70 aid levels Under the Governor’s budget, nearly two-thirds of communities would have been level-funded, and the Senate plan would guarantee that every district would receive an increase of at least $40 per student, which is what the House is proposing as well. The Senate plan is also providing additional funds for a distribution of “target share aid†that was suspended in 2008, directing those funds to “communities that receive a smaller share of their foundation budget from the state than should be the case given their property and income wealth.†This should explain the difference between the distribution in the House-passed budget and the Senate Ways and Means proposal.
In addition to these highlights, the Senate budget committee would maintain funding for other key accounts at the same level as proposed by the Governor, including as Payment-in-Lieu-of-Taxes (PILOT) at $26.3 million, Library Aid at $16 million, Charter School Reimbursements at $71.5 million, and Regional School Transportation at $43.5 million. The Senate would fund Shannon Grants at $6 million, slightly higher than the House’s $5.5 million. Both and Senate and House would provide funds for the new community incentive challenge grant program.
The proposed Senate budget does not include any funding for the transportation of homeless students due to the mandated McKinney-Vento requirements. The House funded a new account to provide $11.3 million for the program, and the MMA will be working hard to incorporate those funds in the final state budget.
PLEASE CALL YOUR SENATORS AND ASK THEM TO SUPPORT THE LOCAL AID INCREASES IN THE SENATE WAYS AND MEANS BUDGET, AND THANK THEM FOR THE FOLLOWING:
• Please tell your Senator(s) that you sincerely appreciate the Senate’s commitment to funding unrestricted municipal aid (UGGA) at $900 million, guaranteeing that cities and towns will receive the full $65 million that came back this year as supplemental aid. This will allow cities and towns to use the funds in fiscal 2013 to balance their budgets, reduce reliance on the property tax, and fund essential services, including police, fire, public works and schools.
• The Senate budget plan would provide every school district a Chapter 70 increase of at least $40 per student, a significant improvement over the Governor’s proposal, and provide Target Share Aid to scores of school districts across the state.
• The Senate plan would fully fund the Special Education Circuit-Breaker – a major priority for cities and towns.
Members of the Senate will have until Friday, May 18 to file amendments to the budget, and full debate on the measure will begin on Wednesday, May 23. The MMA will be analyzing the full budget and all amendments, and will be providing updates throughout the process. Please monitor all MMA budget updates on the MMA website, http://www.mma.org
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