Category Archives: Budgets

The Massachusetts Municipal Association issued the following statement on the budget released by the legislature today –

Key Local Aid Programs $144M Higher than Budget Filed by Gov. in January

“Municipal leaders across the state applaud the leaders and members of the House and Senate for writing an outstanding state budget for cities and towns, and are deeply grateful to Speaker Robert DeLeo, President Therese Murray, Chairman Brian Dempsey, Chairman Stephen Brewer and the members of budget conference committee, Vice Chairman Stephen Kulik, Vice Chairman Jennifer Flanagan, Rep. Vinny deMacedo, and Sen. Michael Knapik.  Communities are struggling mightily to fund essential services, and the state budget before the Legislature today embraces a lasting fiscal partnership to strengthen municipal finances and provide funds for public safety, education and other vital local programs.

“By passing this budget, every legislator is demonstrating their commitment to local aid, and their determination to invest in cities and towns as an essential step in the state’s economic recovery.  The Legislature’s budget will increase fiscal 2013 municipal and education aid by approximately $144 million above the budget submitted by the Governor in January, and $289 million above  current fiscal 2012 levels, an outstanding achievement that will benefit every community in Massachusetts.”
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According to the MMA’s initial analysis of the budget, the key proposals in the Legislature’s fiscal 2013 state budget include the following:
• Guaranteed funding for unrestricted municipal aid of $899 million, by adding $65 million to the base Cherry Sheet distribution, instead of relying on a tentative supplemental distribution later in the year.
• Adding $34.7 million to Chapter 70 school aid above the Governor’s recommendation to ensure that every city, town and school district receives an increase of at least $40 per student above current education aid levels, and to renew the target aid distribution to scores of school districts that was suspended in 2008.
• Fully funding Special Education reimbursements by increasing funding by $29 million, a major step that would benefit every community and school district in the Commonwealth.
• Providing $11.3 million for the transportation of homeless students under the McKinney-Vento Act, adding a new line item to reimburse cities and towns for the cost of this new mandate.
• Increasing funding for regional school transportation reimbursements by $2 million, bringing funding up to $45.5 million.
• In addition to standard local aid accounts, the Legislature’s budget would provide up to $25 million in funding for the Community Preservation Act in fiscal 2014 by creating a mechanism to allocate a portion of any state budget surplus remaining at the end of fiscal 2013.

Mike Sullivan distributed to the Board of Selectmen Tuesday evening the attached speadsheet he had prepared about the taxes over time, FY05 to Fy13.  Taxes increased 20.6% over that time, or an average of 2.6% per year.

I received the following Massachusetts Municipal Association Alert this afternoon, along with a request to call the legislators about the Chapter 90 funds bottled up on a conference committee –

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SENATE COMPLETES STATE BUDGET DEBATE
Fiscal 2013 Budget Plan Goes to Conference Committee

On Friday afternoon, May 25, the Senate completed debate on its version of the fiscal 2013 state budget, with local aid clearly identified as a top priority for Senators.  The Senate budget follows the budget passed by the House in April, which also invested heavily in protecting and restoring key local aid and education accounts.

House and Senate action is expected today to formally establish the budget conference committee, which will have until the end of the month to agree on a final compromise plan.  While June 30 will be the ultimate deadline, most observers agree that the initial target date to reach agreement is June 20, which would give the Governor ten days to review the budget in time to sign it into law on July 1, the first day of the new fiscal year.

The House and Senate each devoted $130 million more to local aid and education accounts than the budget submitted by the Governor in January.  Because each branch chose different ways of allocating the increases, the budget conference committee will need to resolve the differences during their deliberations.

Here are the key local aid items that will be resolved by the conference committee:

UNRESTRICTED MUNICIPAL AID (UGGA): The Senate plan includes $900 million in unrestricted municipal aid, and the House plan devotes $899 million.  The budgets would provide a major increase over the $834 million recommended by the Governor ($66 million more in the Senate plan, $65 million more in the House budget).  The good news is that the House and Senate are united in their efforts to guarantee a substantial increase in the base for municipal aid.  The MMA applauds each branch, and will work to secure the higher level of funding.

CHAPTER 70 EDUCATION AID: The Senate plan includes a $180 million increase in direct school aid, and the House proposes a $163.8 million increase.  Each budget would guarantee a $40 per-student increase in Chapter 70 for each school district.  The Senate budget would add additional funds for “target share aid” to about 100 school districts.  Both plans are higher than the Governor’s $145.6 million increase, which would have level-funded about two-thirds of the school districts across the state.  The House and Senate budgets each represent significant improvement, and the MMA will be advocating for the Senate allocation.

SPECIAL EDUCATION CIRCUIT BREAKER: The original budget submitted by the Governor in January level-funded the program at $213.1 million.  The House added $8.45 million, and the Senate is pushing for full funding, adding $29 million to bring the account up to the $242 million necessary for the state to meet its obligation to reimburse 75 percent of eligible expenses.  This is a vital account that benefits every municipality and school district across the state, and the MMA will be pressing hard for full funding.

McKINNEY-VENTO SCHOOL TRANSPORTATION MANDATE:  The House of Representatives made a major statement in their budget when it included $11.3 million to fully fund the McKinney-Vento mandate for the transportation of homeless students to their schools that was triggered when the state adopted the federal program. Earlier this year, the state Auditor ruled that this is an unfunded mandate, and urged state officials to fund the requirements of the program.  The House budget created a new line item in the budget to provide full reimbursement to cities and towns.  The budgets submitted by the Governor and the Senate contain no funding for the program.  The MMA will be advocating for the full $11.3 million.

COMMUNITY PRESERVATION ACT:  Both the House and Senate budgets contain language to expand the program, allowing cities and towns to expend funds to improve and renovate existing recreational facilities, and allowing communities to use non-property-tax dollars to meet a portion of their funding requirement (CDBG and other funds).  However, the House plan provides a powerful permanent mechanism to add up to $25 million a year in additional state funding on a recurring basis (devoting the first $25 million of any end-of-the-year budget surplus to the CPA program), while the Senate would provide a one-time $5 million transfer from the state’s General Fund.  The MMA and other stakeholders will be advocating for the House plan.

The MMA is analyzing the complete budgets passed by the Senate and House, and will be providing further information and updates.  In the meantime, please contact your legislators on the key budget items above, and urge them to support the maximum local aid increase possible.

This is the Massachusetts Municipal Association’s alert about the Senate’s budget discussions –

SENATE TO BEGIN DEBATE ON THE
FY13 BUDGET BILL AND 694 AMENDMENTS
ON WEDNESDAY, MAY 23

PLEASE CALL YOUR SENATORS TODAY

On Wednesday, May 23, the State Senate will begin debate on the fiscal 2013 state budget recommendation released by the Senate Committee on Ways and Means last week.  Budget debate should be wrapped up by Friday, May 25 at the latest.

Vital local aid decisions will be made in the Senate over the next several days, and we are asking local officials to contact their Senator(s) today to make sure that local aid and local government concerns receive the highest priority.

The Senate budget committee recommendation (S. 4) would increase municipal and school aid by $130 million above the amount proposed by the Governor in January (H. 2).  The Senate Ways and Means proposal guarantees funding for unrestricted municipal aid at $900 million, adding $66 million to the base Cherry Sheet distribution; adds $180 million to Chapter 70 to guarantee $40 per student minimum aid for all cities, towns and school districts, and phase-in “target aid” in many districts; fully funds the SPED Circuit Breaker by adding $29 million to that account.  These increases are great news and a clear sign of the strong commitment of the members of the Senate to local aid this year.

The Division of Local Services (DLS) has released updated preliminary Cherry Sheets for fiscal 2013 showing aid amounts for individual cities, towns and school districts based on the Senate budget committee bill.  Local officials can view their preliminary Senate Ways and Means (SWM) Cherry Sheets at the following link: http://www.mass.gov/dor/local-officials/municipal-data-and-financial-management/cherry-sheets/2013-cherry-sheets/

Senate members have filed 694 proposed amendments on a wide variety of matters, including many that would impact local government.  Most would add funding to local aid accounts or change state law to help cities and towns in other ways.  Some proposed amendments would not be helpful and we will be asking that these be rejected.  Debate will begin on Wednesday, May 23, and it is imperative that your Senators hear from you regarding these amendments.

Please click here to download a copy of the MMA’s letter to Senators on the proposed state budget and the amendments that will be debated this week.

PLEASE CALL YOUR SENATORS TODAY ON THE FOLLOWING AMENDMENTS – THEY MUST HEAR FROM YOU ON THESE KEY ITEMS:

SUPPORT COMMUNITY PRESERVATION ACT:  The MMA SUPPORTS Amendment 62 to fund the Community Preservation Act (CPA) filed by Sen. Cynthia Creem and Minority Leader Bruce Tarr.  The Senate Ways and Means budget already includes language to improve the CPA by allowing funds to be spent on existing recreational facilities, allowing non-property tax dollars to fund a portion of the local match (both changes are in the House-passed budget).  This amendment adds the funding mechanism adopted by the House, providing for an annual transfer of $25 million from any end-of-year state budget surplus into the CPA Statewide Trust Fund rather than relying on an increase in the registry of deeds recording fees.

OPPOSE EARMARK TO FORCE 100% MUNICIPAL FUNDING FOR QUINN BILL:  The MMA strongly OPPOSES Amendment 423 that would effectively reduce, earmark and divert Cherry Sheet Unrestricted General Government Aid (UGGA) to pay the state’s 50 percent share of the Police Incentive Pay Program.  The state has eliminated the appropriation for the state share.  Under this amendment, the state’s share would be deemed to have been paid by using local funds, which would then force every participating city and town to appropriate a matching amount from local property taxes, completely undermining the recent SJC decision that determined that cities and towns do not have to make up or match the state share unless a local contract requires them to do so, and wiping out almost all of the $66 million increase in unrestricted municipal aid in the Senate budget.

OPPOSE HUGE EXPANSION OF COLLECTIVE BARGAINING AND EROSION OF EXISTING MANAGEMENT RIGHTS: The MMA strongly OPPOSES Amendment 136. This measure would totally undermine existing management rights to appoint, promote, transfer and remove employees, especially in public safety, by overriding existing laws and making these decisions subject to collective bargaining and arbitration. The amendment would override state law and allow arbitrators and JLMC to impose contract provisions that reduce the ability of cities and towns to make basic hiring, appointment, transfer and removal decisions.  This amendment would strip municipal executives, including managers, selectmen, mayors, and police and fire chiefs, of basic management authority that has existed in the law for decades.  The House rejected a similar amendment.

OPPOSE A CHANGE IN THE MEMBERSHIP ON THE OPEB COMMISSION:  The MMA OPPOSES Amendment 232.  This amendment would make changes to the special commission established last year to study and make recommendations relative to Other Post Employment Benefits (OPEB).  The Commission currently has a balanced and well-qualified membership led by a very able chair that has already started its work.  This amendment would lead to an unbalanced group and disrupt the work that is underway.

SUPPORT FUNDING FOR THE MCKINNEY-VENTO MANDATE:  The MMA SUPPORTS Amendment 358 to add $11.3 million to fully fund the unfunded state mandate for homeless student transportation costs triggered by state acceptance of the federal McKinney-Vento Act.  This section would provide the funding to cover the certified costs that the Department of Elementary and Secondary Education (DESE) would be required to determine through regulations under section 124 of S. 4.  The House included the $11.3 million in its budget.

If you have any questions, please contact MMA Legislative Director John Robertson at jrobertson@mma.org or Legislative Analyst Catherine Rollins at crollins@mma.org or at (617) 426-7272.  Thank you very much.

John Nunnari forwarded the following article from the State House News Service about the state Senate’s actions on the state budget.  What struck me was the figure that 40% of the state budget now goes for medical care.  I had heard Lida Harkins speak of it being about 33%, mainly for Medicaid (and of that mainly for nursing home care).  Approaching half our state budget for medical care certainly seems to squeeze out the many other needs.  Not how I would expect to allocate the state budget if I was creating it from scratch.

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MURRAY: SENATE BUDGET FEATURES MORE DIRECT LOCAL AID THAN HOUSE

By Michael Norton
STATE HOUSE NEWS SERVICE

STATE HOUSE, BOSTON, MAY 16, 2012……There’s more direct local aid to cities and towns in the fiscal 2013 budget the Senate unveiled Wednesday than the $32.4 billion budget that cleared the House last month, according to Senate President Therese Murray.

The Senate budget will not lead to a reduction in municipal jobs, Murray said, and will dole out $900 million in unrestricted local aid, which she said should prevent any layoffs being contemplated.

During an appearance on WBZ-AM as the Senate Ways and Means Committee was unveiling its budget at the capitol, Murray touted investments in education and said the $32.275 billion Senate budget uses less money from the state’s rainy day fund than the House budget.

Committee members said the bill increases overall state spending 3.7 percent.

Because the constitution requires the House to initiate tax hikes and since the House did not embrace any, including candy, soda and tobacco taxes proposed by Gov. Deval Patrick, the Senate budget also does not include any new taxes. “We can’t add taxes to our budget so that will not be in there,” Murray said.

Murray voluntarily added that she would still buy a Snickers bar if its cost rose by a nickel. “I’m buying it,” she said, adding that she favors a “broader discussion” of taxes.

The budget addresses a $1.4 billion budget gap, she said, without detailing the steps proposed to close it.

The Senate budget will also keep 45 beds for people with mental illnesses open at Taunton Hospital, which the Patrick administration has targeted for closure as it opens a new hospital in Worcester.

Murray said about 40 percent of the spending in the budget is for health care, either for the poor, state employees or for prisoners, and said that big chunk of spending is one of the reasons why lawmakers are separately advancing legislation aimed at reducing the escalation in health care spending.

Explaining the increase in local aid, Murray said cities and towns are facing a spike in special education costs.  Murray also said the local aid, which totals in the billions of dollars, is not accompanied by state-imposed accountability checks but noted municipalities each have their own auditing procedures.

The Senate budget was built based on assessments of what is needed to maintain services, rather than on performance-based measures, but Murray expressed hope that the state will move closer to performance-based budgeting by adopting measures being negotiated by a six-member conference committee.

Murray said the budget will spend more on a State Police task force and take other steps to prevent welfare fraud. Murray said there will “always” be individuals who try to abuse public benefits, but said members of the Senate are “absolutely” as outraged as members of the public about reports of people taking advantage of the system.

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

ʉۢ 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