This from the Massachusetts Municipal Association on the state budget passed by the legislature this week –
Monday, July 1, 2013
HOUSE-SENATE CONFEREES AGREE ON $34B FY ’14 STATE BUDGET AND FY ’13 SUPPLEMENTAL BUDGET
APPROVAL BY LEGISLATURE EXPECTED TODAY
KEY LOCAL AID ACCOUNTS WIN INCREASES:
• Unrestricted General Government Aid (UGGA) Increased by $21.25M Above FY ’13
• Chapter 70 Education Aid Increased by $130M Above FY ’13 Level
• All Cities, Towns & Districts Receive $25 Per Student Minimum Aid
• Budget Phases-In Target Share Aid as Proposed in Senate Ch. 70 Numbers
• Special Education Circuit Breaker Increased by $10.5M Above FY ’13 to $252.5M
• Regional School Transportation Increased by $6M Above FY ’13 to $51.5M
• Budget Includes Provision Tying Public Safety Residency to Collective Bargaining
• FY ’13 Supp. Budget Preserves Local Authority on Ambulance Fees
• FY ’13 Supp. Budget Provides $8M More for Charter School Reimbursements
• FY ’13 Supp. Budget Adds $8.3M to Reimburse Localities for U.S. Senate Election
Details of the House-Senate Conference Committee’s FY 2014 State Budget and FY 2013 Supplemental Budget, to be Voted on Monday, July 1st:
• $21M MUNICIPAL AID INCREASE: The Conference Committee budget provides a $21.25 million increase in Unrestricted General Government Aid (UGGA), guaranteeing that cities and towns will receive all of their Lottery revenues. This increase is in the base local aid distribution of $920M as proposed by the House, and is NOT contingent on any surplus revenues. The community-by-community distribution matches the House numbers approved in April. This is a major win for cities and towns.
• $130M CHAPTER 70 INCREASE: The Conference Committee budget adds $130 million to Chapter 70, matching the distribution amounts approved in the Senate’s version of the budget in May. The distribution guarantees $25 per student minimum aid for all cities, towns and school districts, and funds the existing schedule to implement the Chapter 70 formula, including the phase-in of target share aid as proposed by the Senate. The distribution reflects a significant win for many districts.
• SPED CIRCUIT-BREAKER SEES BIG INCREASE: The Conference Committee budget increases the Special Education Circuit-Breaker account to $252.5 million, $22 million above the Governor’s proposed budget, and $10.5M above the FY ’13 appropriation, coming close to full funding. This funding level is a major victory and will benefit every city, town and school district.
• REGIONAL SCHOOL TRANSPORTATION FUNDED: The Conference Committee Budget increases the Regional School Transportation account to $51.5 million, $7 million above the Governor’s proposed budget, and $6 million above the FY ’13 appropriation. This is a 15.4 percent increase, representing major progress.
• McKINNEY-VENTO: The Conference Committee budget funds McKinney-Vento at $7.35 million, $1.3 million above the Governor’s proposed budget, but $4 million below final FY ’13 levels after the restoration of the December 9C cut.
• CHARTER SCHOOL REIMBURSEMENTS: The Charter School Reimbursement account would be funded at $75 million in the Conference Committee’s FY ’14 appropriation, which is $28 million below full funding. However, the Conference Committee’s FY ’13 supplemental budget would provide an $8 million supplemental increase for this account, which will provide a measure of relief for impacted communities. The FY ’14 shortfall will be a major challenge for many cities, towns and school districts, and this issue must be addressed during the year ahead.
• SHANNON ANTI-GANG GRANTS FUNDED AT $7M: The Conference Committee budget would increase funding for Shannon Grants by $750,000, to $7M in FY ’14.
• PILOT PAYMENTS UP BY $500K TO $26.77M: The Conference Committee budget would appropriate $26.77 million for Payments-In-Lieu-Of-Taxes (PILOT), a key account for cities and towns that host state property. This is $500K more than the FY ’13 budgeted level.
• LEGISLATURE FUNDS $8.3M TO REIMBURSE CITIES AND TOWNS FOR COST OF SPECIAL U.S. SENATE ELECTION: The FY ’13 supplemental budget approved by the Conference Committee contains $8.3 million for the Secretary of State’s office to reimburse cities and towns for the cost of the April primary and June general election to replace retired U.S. Senator John Kerry. This important item provides the funding necessary to comply with a ruling by the State Auditor’s office that the special election law would otherwise be an unfunded mandate on cities and towns.
• PUBLIC SAFETY RESIDENCY LIMIT LINKED TO COLLECTIVE BARGAINING: Sections 50 and 110 of the Conference Committee’s FY ’14 state budget would allow cities and towns to exceed the statutory 10-mile residency requirement for police officers and firefighters through collective bargaining. This provision was in the Senate budget. Currently, the law requires that police officers and firefighters reside no more than 10 miles from the communities in which they work, however, these sections of the budget would amend state law, stating that “cities and towns may increase the 10 mile residency limit under a collective bargaining agreement negotiated under Chapter 150E.” The MMA is concerned about this language, and will be analyzing its potential impact.
• LEGISLATURE’S BUDGET REAFFIRMS THE ABILITY OF CITIES AND TOWNS TO REGULATE LOCAL AMBULANCE FEES: The Conference Committee rejected a proposal that would have changed how cities and towns set fees for emergency medical services by giving this power to the Commissioner of Insurance instead of allowing communities to set fees locally. Instead, Section 23 of the Conference Committee’s FY ’13 supplemental budget states that “payment to an ambulance service provider … shall be at a rate equal to the rate established by the municipality where the patient was transported from,” language that reaffirms local rate-setting authority. The overall provision would ban the “pay-the-patient” practice for emergency ambulance service. The MMA applauds the Conference Committee for embracing this provision. It is important to note that the Governor has rejected similar language in previous budgets, so the matter is far from settled as the budget moves to the Governor’s Desk. The MMA will be advocating for approval of the Conference Committee’s language.
Please Call Your Legislators Today and Thank Them for the Increases in Key Municipal and Education Programs
Thank You!
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