Category Archives: Budgets

House budget #s

Posted on April 14, 2016 | Comments Off on House budget #s

The House released its proposed budget numbers, and we do about $200,000 better than last year with their proposal.  The Governor gave us about $100,000 more than last year.  Usually our numbers do not go down, and the Senate which weighs in last often increases our total state aid.   The Governor did revenue sharing by increasing part of our state aid by the same 4.3% that the state’s revenues increased, and the House extends that 4.3% increase to more state aid items. I am not sure why our Charter Tuition Reimbursement has gone up so much on a percentage basis.

20160414-house budget

Below is the report and instant analysis from the MMA yesterday afternoon on the state budget as it affects municipalities.

Wednesday, April 13, 2016

HOUSE BUDGET COMMITTEE OFFERS $39.5B FY 2017 STATE BUDGET THAT MAKES KEY INVESTMENTS IN MUNICIPAL AND SCHOOL AID
• INCLUDES THE FULL $42M INCREASE IN UNRESTRICTED MUNICIPAL AID (UGGA)
• INCREASES CHAPTER 70 BY $24M TO FUND MINIMUM AID AT $55 PER STUDENT
•ADDS A $10M RESERVE TO AID COMMUNITIES WITH LOW-INCOME STUDENTS
• ADDS $5M TO FUND THE SPECIAL EDUCATION CIRCUIT BREAKER
• ADDS $1M MORE FOR REGIONAL SCHOOL TRANSPORTATION
• LEVEL-FUNDS MOST OTHER MUNICIPAL AND SCHOOL ACCOUNTS

Earlier this afternoon, the House Ways and Means Committee reported out a lean $39.5 billion fiscal 2017 state budget plan to increase overall state expenditures by 3.3 percent. The House Ways and Means budget is $76 million smaller than the budget filed by the Governor in March, yet it also increases Chapter 70 aid by $24 million above the Governor’s recommendation by increasing minimum aid from $20 per student to $55 per student, and also includes a new $10 million reserve to aid communities impacted by changes in the calculations used to account for low-income students. The full House will debate the fiscal 2017 state budget during the week of April 25.

H. 4200, the House Ways and Means budget, provides strong progress on many important local aid priorities, including the full $42 million increase in Unrestricted General Government Aid that the Governor proposed and communities are counting on. The House W&M Committee would increase funding for several major aid programs, by adding $5 million to the Special Education Circuit Breaker, adding $1 million to Regional School Transportation, and increasing Chapter 70 minimum aid to $55 per student.

PLEASE CLICK HERE TO SEE YOUR COMMUNITY’S LOCAL AID AND PRELIMINARY CHERRY SHEET NUMBERS IN THE HOUSE WAYS & MEANS BUDGET, AS ESTIMATED BY THE DIVISION OF LOCAL SERVICES

$42 MILLION INCREASE IN UNRESTRICTED MUNICIPAL AID
In a major victory for cities and towns, H. 4200 (the HW&M fiscal 2017 budget plan) would provide $1.021 billion for UGGA, a $42 million increase over current funding – the same increase proposed by Governor Baker. The $42 million would increase UGGA funding by 4.3 percent, which matches the growth in state tax collections next year. This would be the largest increase in discretionary municipal aid in nearly a decade. Every city and town would see their UGGA funding increase by 4.3 percent.

CHAPTER 70 MINIMUM AID WOULD INCREASE TO $55 PER STUDENT
The House budget committee is proposing a $95.8 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $55 per student. This is $24 million more than the recommendation in the Governor’s budget submission. The budget would continue to implement the target share provisions enacted in 2007. Because most cities and towns only receive minimum aid, this increase would benefit the vast majority of communities.

FUNDS A $10M RESERVE TO AID COMMUNITIES WITH LOW-INCOME STUDENTS
The House Ways & Means budget also includes a new $10 million reserve to aid communities impacted by changes in the calculations used to account for low-income students. This would supplement Chapter 70 distributions to address shortfalls in aid levels due to the new methodology used to count low-income students. DESE would administer this program, and make funding decisions by October 2016.

$5 MILLION INCREASE INTENDED TO FULLY FUND SPECIAL EDUCATION CIRCUIT BREAKER
In another victory for cities and towns, House leaders have announced that they support full funding for the Special Education Circuit Breaker program. Their budget plan would provide $276.7 million, a $5 million increase above fiscal 2016, with the intention of fully funding the account. This is a vital program that every city, town and school district relies on to fund state-mandated services.

ADDS $1 MILLION TO REGIONAL SCHOOL TRANSPORTATION
House Ways and Means Committee budget would add $1 million to bring regional transportation reimbursements up to $60 million. The MMA will work to continue building on this welcome increase.

FUNDING FOR CHARTER SCHOOL REIMBURSEMENTS INCREASED BY $5 MILLION, BUT STILL UNDERFUNDED
Under state law, cities and towns that host or send students to charter schools are entitled to be reimbursed for a portion of their lost Chapter 70 aid. The state fully funded the reimbursement program in fiscal years 2013 and 2014, but is underfunding reimbursements by approximately $46.5 million this year. The House Ways and Means budget would increase funding for charter school reimbursements to $85.5 million, a $5 million boost, although this is $15 million less than the amount recommended by Gov. Baker. The program is underfunded in both budget proposals, and increasing this account will be a top priority during the budget debate.

PAYMENTS-IN-LIEU-OF-TAXES (PILOT), LIBRARY AID ACCOUNTS, METCO, McKINNEY-VENTO, AND SHANNON ANTI-GANG GRANTS
The House budget committee’s proposal would level-fund PILOT payments at $26.77 million, continue to fund library grant programs at $18.83 million, level-fund METCO $20.1 million, and level-fund McKinney-Vento reimbursements at $8.35 million. All four of these accounts are funded the same in both the Governor’s and House Ways and Means Committee’s budgets. However, the HW&M budget would reduce Shannon Anti-Gang Grants to $5 million, a $2 million reduction.

Please Call Your Representatives Today to Thank Them for the Strong Local Aid Investments in the House Ways and Means Committee Budget – Including the $42 Million Increase in Unrestricted Local Aid, Providing Chapter 70 Minimum Aid at $55 Per Student, Funding the Special Education Circuit Breaker, and Adding Funds to Regional School Transportation

Please Explain How the House Ways and Means Budget Impacts Your Community, and Ask Your Representatives to Build on this Progress During Budget Debate in the House

Thank You!

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Posted in Budgets, Financial, Legislature, State, Uncategorized

Declaration of Snow Emergency

Posted on April 4, 2016 | Comments Off on Declaration of Snow Emergency

DPW sign

Email this afternoon from Mike.  We seem to go over the snow budget every year, i think because we just budget low for snow removal. –

We will need a declaration of snow emergency voted tomorrow night by the Selectmen and the Warrant Committee. We got through the last storm, but this one-two punch is putting us over the top. I spoke to Ken about getting a total figure, but, since the snow is now projected to continue until 7:00 p.m. tonight and it’s getting icy on the roads, we won’t have a total until tomorrow and even then it may still be an estimate. Mike

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MHS field report

Posted on March 28, 2016 | 2 comments

SECTION 6 - FINAL RECOMMENDATIONS 66 MEDFIELD ATHLETIC FIELDS MASTER PLAN TOTAL COSTS FOR MULTI-USE FIELD/TRACK REPLACEMENT TOTAL COSTS SAVINGS FOR PHASE I COMBINATION OF MULTI-USE FIELD/TRACK AND PRACTICE FIELD Due to the high level of use of fields in the Town of Medfield and the current condition of the existing field at the High School it is recommended that the existing synthetic turf field with upgraded drainage system and synthetic track be replaced. The synthetic turf fibers are starting to deteriorate, a condition common found in a field with this amount of use and age of the product. The ability of the field to maintain infill in a stable condition will continue to be reduced in turn reducing the overall safety of the field to the athletes. Concerns over rising Gmax will continue to be an issue in the field. Currently there are multiple areas that flood on the field. This is an indication of a failing base/drainage system. It is recommended that a new drainage system replace the existing to alleviate flooding, additionally it is recommended that a trench and slot drain are added to the perimeter of the track to assist with drainage. The synthetic track has clear base issues at the long-jump triple-jump areas. It is highly recommended that the “D-Zone Areas” are built to include synthetic track surfacing which will also assist in the function of the areas when running track meets. The track has been over-sprayed once to date. The track has reached an age in which it should be sprayed again. This should occur during this process. It should be noted that a track can only be sprayed a minimum of three times which should make the track functional for an additional five to six years. This page lists a summary of the “Order of Magnitude” costs for upgrading the existing synthetic turf field and track at the high school. Provided are three alternates which the town should consider in making its decision in replacing the field. • Alternate #1: A higher grade of synthetic turf which is a mixture of a monofilament fiber and a slit film fiber reducing the splash of infill during play. This turf will have a face weight and more fiber which will provide a product which will perform well and stand up to the rigers of use. Additionally, it is recommended that a coated sand infill would be used. The coated sand provides an infill system that creates a firm, fast playing surface. The use of coated sand and the current warranties allow for an infill that can be reused for up to two cycles. Lastly, the alternate includes a shock pad. The shock pad provides absorbency within the field structure. This will reduce the overall Gmax in the field. Current warranties include a maximum Gmax for the life of the warranty which ranges between 20-25 years. • Alternate #2: A standard 2” turf with SBR Rubber and Sand Infill. Included in this alternate is a shock pad. • Alternate #3: Includes 5 storage units with concrete pads. An allowance for upgraded athletic field equipment. Opinion of Probable Cost - Medfield High School Multi-Use Synthetic Field and Track Item Quantity Unit Unit Price Total Base Bid Site Preparation Trailer and Temporary Utilities 1 LS $ 8,000.00 $ 8 ,000.00 Construction Entrances 1 LS $ 12,000.00 $ 1 2,000.00 Remove & Dispose Synthetic Turf 75000 SF $ 0.75 $ 5 6,300.00 Silt Sock 1,159 LF $ 3 .00 $ 3 ,500.00 Inlet Protection 2 EA $ 3 00.00 $ 6 00.00 Subtotal $ 8 0,400.00 Multi‐Use Field Concrete Curb 1150 LF $ 25.00 $ 28,750.00 Trench Drain 1150 LF $ 50.00 $ 57,500.00 F&I Field Drainage 75000 SF $ 1.75 $ 131,250.00 F&I Flat Drain 75000 SF $ 1.20 $ 90,000.00 F&I 8" Base Stone 75000 SF $ 1.00 $ 75,000.00 F&I 2" Finishing Stone 75000 SF $ 0.60 $ 45,000.00 Turf Material 75000 SF $ 3.50 $ 262,500.00 Rubber 75000 SF $ 0.56 $ 42,000.00 Sand (E+L) 75000 SF $ 0.17 $ 12,750.00 Football Uprights 1 PR $ 15,000.00 $ 15,000.00 12' Ball Stopper Netting 400 LF $ 90.00 $ 36,000.00 Subtotal $ 7 95,750.00 Synthetic Track Surfacing Gravel Base D-Zone 22000 SF $ 1.50 $ 33,000.00 Bituminous Concrete Paving D-Zone 22000 SF $ 2.75 $ 60,500.00 Track Surfacing 22000 SF $ 5.00 $ 110,000.00 Track Re-Surfacing 32000 SF $ 1.50 $ 48,000.00 Line Striping 1 LS $ 4,000.00 $ 4,000.00 Subtotal $ 2 55,500.00 SUBTOTAL OF SITE CONSTRUCTION ITEMS TOTAL $ 1 ,131,650.00 GENERAL CONDITIONS, BOND, CONTRACTOR OH&P $ 1 13,165.00 CONTINGENCY $ 5 6,582.50 SOFT COSTS $ 8 4,873.75 TOTAL $ 1,387,000.00 Opinion of Probable Cost - Medfield High School Multi-Use Synthetic Field and Track Item Quantity Unit Unit Price Total Alternate #1: Option A Base Bid $ 1,387,000.00 Deduct SBR Rubber and Sand $ ( 336,285.00) Upgraded Turf,Coated Sand Infill, and Shock Pad $ 583,912.50 Alternate #1 Total $ 1,635,000.00 Alternate #2: Option B Base Bid $ 1,387,000.00 Deduct SBR Rubber and Sand $ ( 336,285.00) SBR Rubber, Sand, and Shock Pad $ 472,650.00 Alternate #2 Total $ 1,524,000.00 Alternate #3 Equipment & Closeout 1 LS $ 30,000.00 $ 30,000.00 Storage Units with Pads 5 EA $ 12,000.00 $ 60,000.00 Alternate #3 Total $ 90,000.00 FIELD A: HIGH SCHOOL MULTI-USE SYNTHETIC FIELD AND TRACK

I had posted this report, but that was before I learned how to insert a JPEG of the file so you can now see the actual document, so here is the document. At the annual town meeting we will be asked to vote $1.4m. to replace the MHS turf field.

The initial evergreen field was installed around 2004 (from memory), funded entirely with private donations totaling over $600,000, as a Medfield Foundation initiative lead by Tim Nugent. The field when built had an expected ten year life, before it was to need substantial work.

This current report does not say how long the proposed field will last, but it does quote a 20-25 year life for the Alternate #1, which adds about $250,000 to the cost.  As I understand things, that is not the suggested option, since the cost I have heard stated is the $1.4m., which is the cost of the basic replacement in this report.  If that basic field still has a 10 year life, it may behoove the town to  pay the extra $250,000 now to get an extra 10-15 years of use before having to pay for another replacement, versus paying for a full replacement in another 10 years.

The field is located in an area that is wet, and was reportedly as a result always a marginal location for a playing field because of that wetness.  At the time the time of the original construction of the turf field the schools reportedly did not want to consider other less wet locations.

This is the sort of large expense that should be on the town’s new 20 year capital plan that the town is looking to create – a known large repeating expense for which we as a  town should budget and plan ahead.  Funding the creation of that new 20 year town wide capital plan is another ATM article.

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Posted in Budgets, Medfield High School, Schools, Uncategorized

DLS data

Posted on March 17, 2016 | Comments Off on DLS data

DLS

The state’s Division of Local Services sends me an interesting newsletter, which this time lead me to the data that they track on us at http://www.mass.gov/dor/local-officials/municipal-databank-and-local-aid-unit/databank-reports-new.html .

 

These are our FY15 receipts from the state:                                    ESTIMATED       ACTUAL

175 Medfield 2015 PAYMENTS IN LIEU OF TAXES 1,860 2,941
175 Medfield 2015 DEPARTMENTAL REVENUE – SCHOOLS 0 6,058
175 Medfield 2015 FINES AND FORFEITS 19,225 15,237
175 Medfield 2015 DEPARTMENTAL REVENUE – CEMETERIES 18,000 29,654
175 Medfield 2015 INVESTMENT INCOME 28,000 33,501
175 Medfield 2015 FEES 49,000 52,770
175 Medfield 2015 PENALTIES AND INTEREST ON TAXES AND EXCISES 82,000 85,473
175 Medfield 2015 a.Meals 53,000 98,793
175 Medfield 2015 RENTALS 275,532 281,180
175 Medfield 2015 SPECIAL ASSESSMENTS 366,958 496,741
175 Medfield 2015 OTHER DEPARTMENT REVENUE 448,994 585,766
175 Medfield 2015 LICENSES AND PERMITS 642,901 779,442
175 Medfield 2015 MOTOR VEHICLE EXCISE 1,969,000 2,050,159

 

 

These are their estimates for FY16 –

NB – some have some large changes downward from the “actual” #s from last year.

175 Medfield 2016 PAYMENTS IN LIEU OF TAXES 2,941
175 Medfield 2016 FINES AND FORFEITS 15,237
175 Medfield 2016 DEPARTMENTAL REVENUE – CEMETERIES 26,700
175 Medfield 2016 INVESTMENT INCOME 38,000
175 Medfield 2016 FEES 49,728
175 Medfield 2016 PENALTIES AND INTEREST ON TAXES AND EXCISES 83,000
175 Medfield 2016 a.Meals 120,000
175 Medfield 2016 RENTALS 281,180
175 Medfield 2016 SPECIAL ASSESSMENTS 333,128
175 Medfield 2016 MISCELLANEOUS NON-RECURRING (PLEASE SPECIFY) 445,905
175 Medfield 2016 OTHER DEPARTMENT REVENUE 514,284
175 Medfield 2016 LICENSES AND PERMITS 615,470
175 Medfield 2016 MOTOR VEHICLE EXCISE 2,050,000  

 

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House budget

Posted on March 16, 2016 | Comments Off on House budget

This analysis from the Mass. Municipal Assoc. this afternoon of the budget we can expect soon out of the House, and what we should want it to contain.  The $100/children education funding versus the $20/student the Governor proposes is the biggest one for me.

MMA-2

 
Wednesday, March 16, 2016

HOUSE BUDGET COMMITTEE PREPARING FISCAL 2017 STATE BUDGET

UGGA, CHAPTER 70, AND KEY MUNI & ED ACCOUNTS AT STAKE

PLEASE CALL YOUR REPRESENTATIVES TODAY AND SECURE THEIR PLEDGE TO SUPPORT THE $42 MILLION INCREASE IN UNRESTRICTED MUNICIPAL AID, HIGHER CH. 70 MINIMUM AID, AND FULL FUNDING FOR KEY EDUCATION AND MUNICIPAL REIMBURSEMENTS AND GRANTS

The House and Senate budget committees have wrapped up public hearings on the fiscal 2017 state budget and are now drafting detailed spending plans that reflect the priorities of each branch. We know from our meetings with legislators that many of you have met with your legislators on local priorities for the many municipal and school aid accounts in the state budget.

With the House Ways & Means Committee’s version of the budget scheduled for release on April 13, it is imperative that you call your legislative delegation to highlight the importance of key local aid accounts before final decisions are made.

On February 29, MMA officers and other local officials testified on the many municipal and school aid accounts that the MMA tracks and supports. Please click here to see MMA’s detailed testimony. Please ask your Representatives to talk to the House Ways & Means Committee and ask that they support the main statewide priority accounts and your own local priorities.

UNRESTRICTED GENERAL GOVERNMENT AID (UGGA)
This is a top priority. Ask your legislators to support the $42 million increase in the Unrestricted General Government Aid (UGGA) account included in H. 2, the fiscal budget recommendation submitted by the Governor in January. The UGGA account is currently funded at $979.8 million, and the 4.3 percent increase in H. 2 would simply track the growth in state tax revenues forecast for next year.

CHAPTER 70 SCHOOL AID
The Governor’s budget recommendation provides a far-too-small 1.6% increase in Chapter 70 school aid, which is much to low. Please ask your legislators to support funding increases for two key aspects of the Chapter 70 calculation for fiscal 2017. The first increase is to ensure adequate funding for the current basic school aid framework. The second is to begin implementation of the Foundation Budget Review Commission’s recommendations to correct outdated and obsolete aspects of the foundation budget framework.

MINIMUM AID SHOULD BE $100 PER STUDENT. Please support an increase in the “minimum aid” amount to $100 per student, instead of the $20-per-student amount in the Governor’s budget. This is an important way to offset the low inflation factor used to adjust foundation budget components for fiscal 2017 and to help correct the impact of the change in how low-income students are counted. We are also asking legislators to review how low-income students should be counted and added into the formula.

FLAWS IN THE CHAPTER 70 FORMULA SHOULD BE FIXED. Second, please ask your legislators to support the implementation of the Foundation Budget Review Commission’s recommendations to update the Chapter 70 “foundation budget” minimum spending standards for special education and health insurance costs for school employees, and to add to the spending standard a measure of recognition for the cost of services for low-income, English Language Learner (ELL) and other students who would benefit from more intensive services. The Chapter 70 framework is clearly outdated and inadequate, and the Commission’s recommendations would address the major shortcomings in the formula.

REIMBURSEMENTS FOR SCHOOL AID LOSSES RELATED TO CHARTER SCHOOLS
Please ask your Representatives to support full funding of the state’s legal commitment to reimburse school districts for the loss of a portion of their Chapter 70 aid that is redirected to fund charter schools. This is a growing financial burden on cities and towns that is becoming more acute as the state grants more charters and existing charter schools expand. The shortfall in charter school reimbursements is crippling funding for schools in scores of cities, towns and school districts.

SPECIAL EDUCATION “CIRCUIT BREAKER”
Please ask your Representatives to support full funding of the Special Education “Circuit Breaker” Program, through which the state provides a measure of support for services provided to high-cost special education students. H. 2 would level-fund the Special Education Circuit Breaker program at $272 million. This means that the Governor’s budget likely underfunds reimbursements by approximately $10 million.
PLEASE CALL YOUR REPRESENTATIVES TODAY TO SUPPORT THESE FOUR MAJOR MUNICIPAL AND SCHOOL AID ACCOUNTS, AND DISCUSS OTHER LOCAL PRIORITIES

THANK YOU!

 
Massachusetts Municipal Association
One Winthrop Square, Boston, MA 02110
(617) 426-7272
All contents copyright 2015, Massachusetts Municipal Association

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Energy Committee from 2/11

Posted on March 14, 2016 | Comments Off on Energy Committee from 2/11

MEC

Town can save $34,740/year by buying our streetlights, and switching to LED streetlights.  The selectmen said we want the town meeting to make the decision, but let’s not wait a whole year and lose that much money in the interim.

We save money, we get better, safer lighting too – it’s a no-brainer.

 

MEC Meeting Minutes-February 11, 2016

Attendance: Andrew Seaman, Lee Alinsky, Cynthia Greene, Pete Peterson, Maciej Konieczny, Fred Davis, Marie Nolan

  1. January 13 meeting minutes accepted with additions.
  2. High School Students – not in attendance.
  3. Energy Manager’s Report
    1. WWTP Solar – Could start generating next week. PV system will be accepted by Town 3/1/16. On wait list for SRECs.
    2. 60 kW system is being considered for Public Safety Building. Roof weight and conduits sized for this system. Dore & Whittier drawing up plans. About a 7 to 9-year payback with SRECs. Options include having it done by GC or going out to bid later. Building construction estimated to be done October 7, 2016. Awaiting word on expansion of SREC program before moving forward with these plans.
    3. LED streetlights – Revised analysis provided by Fred D and Andrew S. Fixtures and installation costs $104,864 ($88,677 after incentives). Results in savings of $34,740/year including utility incentives and installation. Simple payback of 2.6 years to replace all 347 lamps with new LED fixtures after purchasing old HID fixtures for $1. Andrew confirmed $1 price from Eversource, offer good until April after Town Meeting. If Medfield did not purchase streetlights, likely replace with high sodium fixtures like existing on as need basis. Concluded best to replace all 347 streetlight all at once. Westwood used this approach with grant money from Green Communities. Andrew S. will investigate adding line item for streetlight purchase in this year’s capital budget or adding a warrant article. If wait one year, then forgo the $34,000 savings for one year. Streetlights are mounted on Verizon poles. Town owns arm and lamp itself. LED light warranty is 10 years. Money could be set-aside annually in reserve fund to pay for replacement in 15 years.
  4. Solarize Massachusetts’ status – Marie N. presented proposal at last week’s Selectmen’s meeting.   The program received endorsement by them and a letter of support was written. Andrew S. is to submit application with attachments to Mass CEC tomorrow. It could take 4-6 weeks to learn whether application is accepted.
  5. Community Shared Solar – similar to virtual net metering. Lee A. described the renewable Mass based program and will present possible projects for Medfield residents to consider at a future meeting.
  6. Next steps for Green Communities: MEC presented at Warrant Committee and Hospital Reuse Committee. Warrant committee will vote on stretch code article at their February 23rd MEMO meeting cancelled due to snow. Andrew S. scheduled to present at Permanent Planning & Building Committee but he may be on leave at the time. COA meeting to be scheduled. Recommended that at least I MEC member joins Andrew S at these meetings. Other community groups to present at: Lions, New in Towne, Medfield Green, and Legion. Andrew S will develop 5-year Energy Plan pending stretch code approval at Town Meeting. Press Release to be written on town energy-related initiatives. Looking into a possible writer to interview Andrew S.
  7. MMA Annual Meeting, Energy Session attended by Fred D. – Reported out the remarks made by the ISO-New England representative and the MA Energy Commissioner.   General sentiment was that new natural gas pipelines are not needed in the state.   Also reported at the meeting that over half (155) of MA towns are designated Green Communities.

Next month’s meeting – tentatively scheduled for March 17, 2016. Location and date to be confirmed.

 

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Posted in Budgets, Energy Committee, Safety, Uncategorized

MMA Best Practices

Posted on February 19, 2016 | Comments Off on MMA Best Practices

MMA

The Massachusetts Municipal Association published in January a series of “best practices” for towns in Massachusetts, and I thought I would share them as I had time. This process is where we can share the collective knowledge of all the other towns, as we figure out how best to do things.

The first “best practice” is about how much we should have in reserves, and the MMA recommends more than 5% or two months of  your operating funds.  Our budget is about $60m./year, so I make that amount to be about $10m.  I think that is about twice what we have.

MMA Fiscal Policy Committee
Best Practice Recommendation: Municipal Reserves

BEST PRACTICE: Adopt, as a set policy or practice, adequate funding of municipal reserve accounts to mitigate budget risks from extraordinary and unforeseen events and maintain fiscal stability over time. This could include the adoption of reserve funding targets of 5 percent or more, based on the size of the municipal budget and consideration of spending and revenues risks. This could also include the identification of specific year-end fund balances or revenues from other sources
to contribute to reserve accounts. A good policy or practice could also include rules for the use or draw down of reserves and for replenishment of depleted accounts.

It is widely recognized that those state and local governments that have established and funded reserve and stabilization accounts at sufficient levels have been well-served, because reserves allow states and localities to sustain services in times of economic and fiscal distress and limit the risk from extraordinary and unforeseen occurrences. Sound policies and practices, along with adequate levels of reserves, can also have a positive impact on credit ratings and can reduce  the cost of borrowing and capital project spending.

The Division of Local Services advises that a good reserve policy will establish target balances for the local stabilization fund and other reserves and “develop a schedule of annual appropriations … designed to reach and sustain target balances gradually over time.”

A Best Practice adopted by the Government Finance Officers Association (GFOA) Executive Board recommends that “governments establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund.” The GFOA suggests that the balance be maintained at no less than two months of general operating fund revenues or expenditures, although the amount of the balance and the measurement depend on the specific circumstances of the municipality. The GFOA also recommends that the purpose of various parts of the fund balance be specified, including, for example, “a portion for working capital, one for budgetary stabilization, and one for responding to extreme events.”

References from the Government Finance Officers Association (GFOA):
www.gfoa.org/appropriate-level-unrestricted-fund-balance-general-fund
www.gfoa.org/adopting-financial-policies-0

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Mike & MMA on Gov’s budget

Posted on February 2, 2016 | Comments Off on Mike & MMA on Gov’s budget

MMA-2

First, the Governor is not signing on the the revenue sharing that the MMA has been seeking from the state, where the state commits to sharing its increased revenues with the municipalities.  At the MMA annual meeting just a week ago the Governor touted that he was increasing some component of state aid in accordance with the 4.3% projected state revenue increases, but Mike Sullivan noted that component is only a small part of our state aid, and that the same percentage increase is not applied to the major parts of our state aid, namely Chap. 70 monies for education, which Mike indicated were only going up about 1%.  Therefore,  the result is that the state is continuing to transfer the cost of delivering your local services that you get from Medfield to your property taxes, the town’s main source of revenues.

Second, this is the MMA analysis of Governor Baker’s proposed budget –

Wednesday, January 27, 2016

GOV. BAKER FILES $39.5B FY 2017 BUDGET

  • UNRESTRICTED MUNICIPAL AID WOULD INCREASE BY $42 MILLION (4.3%)
  • CHAPTER 70 AID WOULD INCREASE BY ONLY $72 MILLION (1.6%)
  • MOST OTHER MUNICIPAL AND SCHOOL ACCOUNTS LEVEL-FUNDED

Earlier this afternoon, Gov. Charlie Baker submitted a $39.55 billion fiscal 2017 state budget plan with the Legislature, proposing a spending blueprint that would increase overall state expenditures by 3.5 percent, as the new Administration seeks to close a projected $635 million structural budget deficit by restraining spending across the board.

The Governor’s budget includes a $42 million increase in Unrestricted General Government Aid, and $72 million more for Chapter 70 school aid. Most other municipal and education aid accounts in the Governor’s budget proposal would remain at fiscal 2016 levels. This includes the special education circuit breaker, payments-in-lieu of taxes, regional school transportation, Shannon anti-gang grants, McKinney-Vento reimbursements and METCO funding. Kindergarten development grants would be level funded, with language to have the state develop guidelines to have recipients focus on early literacy outcomes.

The Governor would increase funding for charter school reimbursements by $20.5 million, yet proposes to revamp the reimbursement formula so that this increase would be targeted to those cities, towns and school districts whose charter cap exceeds 9 percent of net school spending because of underperforming test scores.

• Click here to see the UGGA and Chapter 70 Aid amounts listed by community in the Governor’s budget:
http://www.mass.gov/bb/h1/fy17h1/os_17/h3.htm

• Click here to see the Division of Local Services preliminary fiscal 2017 Cherry Sheet aid amounts for your community, based on the Governor’s proposed budget (you will need to insert the name of your community and “2017” in the fiscal year field):
https://dlsgateway.dor.state.ma.us/DLSReports/DLSReportViewer.aspx?ReportName=CherrySheetBudgets&ReportTitle=Cherry+Sheet+Budgets

• Click here to see DESE’s calculation of fiscal 2017 Chapter 70 aid and Net School Spending requirements for your city, town, or regional school district, based on the Governor’s proposed budget:
http://www.doe.mass.edu/finance/chapter70/chapter-17p.html

UNRESTRICTED MUNICIPAL AID INCREASED BY $42 MILLION
In a major victory for cities and towns, House 2 (the Governor’s fiscal 2017 budget submission) would provide $1.022 billion for UGGA, a $42 million increase over current funding. This fulfills one of Gov. Baker’s major campaign promises to increase direct municipal aid by the same rate of growth as state tax revenues.

The $42 million would increase UGGA funding by 4.3 percent. This would be the largest increase in discretionary municipal aid in nearly a decade. Every city and town would see their UGGA funding increase by this 4.3 percent growth rate.

CHAPTER 70 SCHOOL AID WOULD GO UP JUST 1.6 PERCENT
The Governor’s budget submission proposes a very small 1.6 percent increase in Chapter 70 education aid of $72 million, providing every city, town and school district with a minimum increase of at least $20 per student. The Governor’s budget would continue to implement the target share provisions enacted in 2007. The overall Chapter 70 increase would be significantly smaller than in recent years. Nearly 70 percent of cities and towns would only receive an increase of $20 per student under the Governor’s budget. This below-inflation increase is far too low, and would force communities to reduce school programs or further shift funds from the municipal side of the budget.

Please ask your Legislators to support a funding increase for Chapter 70 school aid that ensures that all schools receive a suitable and appropriate increase in fiscal 2017, which the MMA believes should be at least $100 per student. The MMA also strongly supports implementation of the recommendations of the Foundation Budget Review Commission to update the Chapter 70 “foundation budget” minimum spending standards for special education and health insurance costs for school employees, and to add to the spending standard a measure of recognition for the cost of services for low-income, English Language Learner (ELL) and other students who would benefit from more intensive services. The Commission recommended phasing in the changes over a four-year period, a position the MMA supports as well. Increasing minimum aid and fixing the inadequacies in the foundation formula are essential.

It should also be noted that House 2 contains language that would continue to allow communities to count retiree health insurance toward their net school spending, but only if they have done so beginning when the school finance law first went into effect in 1994, or if they have already voted to adopt the local-option provision in section 260 of the fiscal year 2015 general appropriations act to allow a phase-in of retiree health insurance costs in their net school spending calculation.

SPECIAL EDUCATION CIRCUIT BREAKER UNDERFUNDED
The Governor’s budget would level-fund the Special Education Circuit Breaker program at $271.7 million. Because special education costs are expected to rise by 3.5 percent in fiscal 2017, this means that the Governor’s budget likely underfunds reimbursements by approximately $10 million. This is a vital account that every city, town and school district relies on to fund state-mandated services. The Legislature has fully funded the program for the past four years, and the MMA will again be asking lawmakers to ensure full funding in fiscal 2017.

$20.5 MILLION MORE FOR CHARTER SCHOOL REIMBURSEMENTS
The Governor’s budget would add $20.5 million to charter school reimbursements, bringing funding up to $101 million. In fiscal 2017, all communities would receive 100 percent reimbursement for their increased charter school tuition payments above fiscal 2016 levels. For most communities, the current 5-year reimbursement schedule would be replaced with a one-year reimbursement of increased costs compared to the previous year. For underperforming school districts that have a charter cap that is higher than 9 percent of Net School Spending, the Governor is proposing a 3-year schedule, to reimburse those communities 100 percent in the first year, 50 percent in the second year, and 25 percent in the third year. Local officials will need to examine their own enrollment and tuition costs to determine how this new formula would impact them. The estimate of both the tuition amount and the reimbursement amount for each community are available on the Division of Local Services’ preliminary Cherry Sheets at the following link: https://dlsgateway.dor.state.ma.us/DLSReports/DLSReportViewer.aspx?ReportName=CherrySheetBudgets&ReportTitle=Cherry+Sheet+Budgets

REGIONAL SCHOOL TRANSPORTATION REIMBURSEMENTS LEVEL FUNDED
Gov. Baker’s budget submission would level-fund regional transportation reimbursements at the $59 million amount. This will be a hardship for virtually all communities in regional districts.

KINDERGARTEN GRANTS & McKINNEY-VENTO REIMBURSEMENTS LEVEL FUNDED
The Governor’s budget would level fund reimbursements for the transportation of homeless students at $8.35 million. With this amount of funding, the account remains far below the full reimbursement called for under the state’s unfunded mandate law. Kindergarten development grants would be level funded at $18.6 million, with language to have the state develop guidelines to have recipients focus on early literacy outcomes.

PAYMENTS-IN-LIEU-OF-TAXES (PILOT) AND SHANNON GRANTS LEVEL FUNDED, LIBRARY AID ACCOUNTS CUT $79K
The Governor’s budget would level fund PILOT payments at $26.77 million, Shannon anti-gang grants at $7 million, and fund library grant programs at $18.9 million, a reduction of $79,000.

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Our state aid + 1%

Posted on January 27, 2016 | Comments Off on Our state aid + 1%

State-House-smaller_1 (1)

From John Nunnari –

Although I’m sure both the MMA and the Department of Local Services has already provided previews of these numbers, I’m passing this along in case you hadn’t seen the numbers released today by the Governor.

The Governor is proposing an additional $107K over last year, which is approximately a 1% increase.

john

 

 

Municipality/Regional District 7061-0008 Chapter 70 Unrestricted General Government Aid Annual Formula Local Aide
FY ’15 Actual Appropriation $5,862,409.00 $1,289,875.00 $0.00
FY ’16 Actual Appropriation $5,925,859.00 $1,336,310.00
Governors FY ’17 Proposal $5,975,759.00 $1,393,771.00 $0.00
Medfield (House FY ’17 Proposed Numbers) $0.00 $0.00 $0.00
Medfield (Senate FY 17 Proposed Numbers) $0.00 $0.00 $0.00
FY ’17 Conference Committee Report           July +/- $0.00 $0.00 $0.00

 

 

John Nunnari, Assoc AIA
Executive Director, AIA MA

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MMA info #5

Posted on January 27, 2016 | Comments Off on MMA info #5

MMA-2

Last Friday and Saturday I attended the MMA’s annual meeting at the Hynes Convention Center, where I always get good insights and gather great information.  I posted some of them while I was there.

Hynes

This morning as I heard about the Governor releasing his proposed version of the state budget for FY17, I was recalling Governor Baker telling us last Friday morning that last year he saw that municipalities got 75% of the state’s revenue increases in FY16 passed along to them via increased local aid from the state, that this year he is proposing that we get 100% of the state’s revenue increases passed along.  This sounds a lot like the revenue sharing that the MMA has been asking the state to commit to for a long time – now it just needs to be institutionalized and made permanent.

The state’s consensus revenue numbers for FY17 predict a 4.3% increase in state revenue, so our local aid should be going up 4.3% in the Governor’s proposed budget.

 

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