Today, I was proud to join Speaker Ron Mariano and Chairman Aaron Michlewitz to release the House Ways and Means Committee budget recommendations. I just wanted to share with you the preliminary local aid numbers for the town of Medfield:
Unrestricted Local Aid: $1,636,170
Increase of $43,015 (2.7%) over FY22
Chapter 70 Funding: $6,507,474
Increase of $145,740 (2.3%) over FY22
The next step in the process is to debate the budget before the entire House of Representatives. We plan to do this the week of April 25. It is during this time I will advocate for Medfield-specific priorities. I will follow up after the House budget process is finalized with the final numbers for FY23 as well as next steps.
Please let me know if you have any questions.
Denise C. Garlick
13th Norfolk District: Needham, Dover and Medfield* (precinct 1 and 2)
Posted onMarch 21, 2022|Comments Off on MMA on the state budget – more should be due towns
From the Massachusetts Municipal Association this afternoon –
Please Urge Your Legislators to Support Key Local Government Priorities for Fiscal Year 2023
Please Call Your Representatives and Senators Today and Ask Them To:
• Increase UGGA by 7.3%, not 2.7% • Increase Chapter 70 Aid Minimum Aid to $100/student • Fully Fund School Transportation Accounts • Fully Fund PILOT • Pass a Multi-year $300M Chapter 90 Bond Bill
Increase Unrestricted General Government Aid (UGGA) by 7.3%
Please ask your legislators to provide a strong commitment to revenue sharing by increasing Unrestricted General Government Aid (UGGA) by 7.3%, or $85.3 million, to bring the account up to $1.253 billion in FY23. State tax collections in FY23 are projected to grow by 7.3% above the revenue base that was used in the FY22 budget that the Legislature adopted last July. The budget filed by the Governor (House 2) only offers a far-too-low 2.7% increase, and does not reflect full revenue sharing. Between FY15 and FY20, the state’s revenue-sharing calculation worked well, providing adequate and dependable increases for UGGA that kept pace with state revenue growth – UGGA and state revenues each increased by 19% over these years. But during the past two years, the state’s revenue forecasts have been far lower than actual collections, and this threatens to leave cities and towns behind. State tax revenues have grown by 22% in FY21 and 22, but UGGA has only increased by 3.5%. By tying UGGA increases to the growth from the FY22 enacted budget to January’s FY23 revenue forecast, this adjustment could be made and the UGGA account would increase by a total of $85.3 million. This would more adequately reflect the last two years of unprecedented state revenue growth, while acknowledging that future year tax revenues may return to more modest growth patterns. UGGA provides essential funding for municipalities, allowing communities to deliver core services to residents and businesses, while mitigating further overreliance on the property tax. As you know, discretionary local aid suffered disproportionately large cuts during the Great Recession, and is still nearly $150 million below fiscal 2008 levels, without adjusting for inflation.
For FY23, the MMA requests an 7.3% increase in UGGA funding levels, to a new total of $1.253 billion.
Increase Chapter 70 minimum aid to $100 per student Please thank your legislators for their commitment to fund Chapter 70 School Aid and fulfill the promises made in the Student Opportunity Act. Because this reflects the implementation of the SOA’s foundation budget enhancements, the majority of the new funding in House 2 would go to expansion of the foundation budget, adding weight for low-income students, English Language Learners, special education costs, and school employee health benefits. Unfortunately, 135 of 318 operating districts (42%) would receive only the minimum $30 per-student increase in the Student Opportunity Act, providing Chapter 70 increases of 1% or less, far below inflation. These 135 districts would receive a total of $9.3 million in new aid, while the other districts would receive $475 million more.
Please ask your legislators to increase minimum aid to $100 per student to ensure that all districts can at least keep pace with inflation and maintain their school services.Fully Fund School Transportation Accounts (various line items)
In mid-March, DESE will release the FY23 projected costs associated with school transportation. We know that the Governor’s budget would cut regional transportation reimbursements below FY22 levels and would significantly underfund out-of-district vocational transportation. Please ask the Legislature to use DESE’s projections when published, to fully fund these key accounts, as well as the McKinney-Vento account for transporting homeless students.
Please ask your legislators for full funding of all school transportation accounts.
Fully Fund PILOT
MMA supports full funding of the Commonwealth’s obligations to the program for payments in lieu of taxes for state-owned land (PILOT). The House 2 proposal would level fund this account at $35 million. A report completed by the state auditor in December 2020 found that this account has not met the state’s obligation in 20 years, and that the funding for fiscal 2020 should have been $45 million. This is a particularly important program for the cities and towns that host and provide municipal services to state facilities that are exempt from the local property tax, and we applaud the Legislature’s fiscal 2022 increase, which initiated a path to phasing-in full funding. Unfortunately, H. 2 would stall that progress.
Please ask your legislators to make an important investment in the PILOT program and continue the commitment to full funding.
When discussing the details, please ask them to support the auditor’s recommendation to fully fund this account based on the aggregate tax method, and ask for a “hold harmless” provision to protect municipalities with reduced land values and PILOT reimbursements.
Pass a Multi-year $300M Chapter 90 Bond Bill & Support Supplemental Funding
While separate from the annual budget process, Chapter 90 funding for local roads and bridges is a key priority for municipalities. Chapter 90 is a critical program for all cities and towns across the Commonwealth, and it needs both short- and long-term support. Chapter 90 allocations have been generally flat at $200 million since fiscal 2012, and the purchasing power of that funding has been substantially diminished. Since fiscal 2012, the real value of Chapter 90 funding has dropped by at least 42% due to construction inflation. The MMA estimates that the current Chapter 90 bond program ($200 million) is far short of the more than $600 million annual investment actually needed to maintain municipal roads. This figure was most recently calculated as of fall 2021, so the number today is likely even higher due to additional inflationary pressures and higher costs of supplies and materials.
Please ask your legislators to pass a multi-year $300 million Chapter 90 bond bill by April 1, so municipalities can efficiently plan projects and take advantage of the construction season from the start. In addition, with a rapidly-growing need and many shovel-ready projects, we are requesting a separate, one-time $100 million supplemental appropriation, which was first proposed in the Governor’s FY22 supplemental budget.
As I wrote yesterday, the new law doesn’t mandate new housing. It changes zoning codes to allow property owners to build small multi-unit homes if they choose — a process that could take years, or decades, if ever.
We’re not talking about massive apartment towers. The law is designed to encourage more townhouses, triple-deckers and carriage houses near T-stops — instead of McMansions.
Failure to rezone would make a community ineligible for certain state grants, according to draft regulations.
Posted onOctober 25, 2021|Comments Off on HOUSE BUDGET COMMITTEE ANNOUNCES $3.65B SPENDING PLAN FOR ARPA AND STATE SURPLUS
From the Massachusetts Municipal Association this afternoon –
HOUSE BUDGET COMMITTEE ANNOUNCES $3.65B SPENDING PLAN FOR ARPA AND STATE SURPLUS
October 25, 2021
Dear Osler Peterson,
Today, the House Committee on Ways and Means announced a $3.65 billion spending plan that draws from two revenue sources: the state’s multi-billion dollar fiscal 2021 surplus and its allocation from the American Rescue Plan Act’s State and Local Coronavirus Relief Fund.
The House proposal (H. 4219) targets seven major categories: housing, environment and climate change mitigation, economic development, workforce, health and human services, education, and food insecurity. House members have until 3 p.m. on Tuesday to file amendments, and debate is scheduled to begin on Thursday. After the House approves its proposal, the Senate is expected to offer its own bill in the coming weeks.
The following are the highlights of H. 4219:
Housing The $600 million proposed for housing programs includes targeted investments in supportive housing production, public housing maintenance, homeownership assistance, the CommonWealth Building Program, and affordable housing production.
Environment and climate The bill includes $350 million for environmental infrastructure and development spending, with a focus on environmental justice communities. Targeted investments include Marine Port Development and Offshore Wind, environmental infrastructure projects aimed at bolstering communities’ climate resiliency, water and sewer infrastructure improvements, greening the Gateway Cities, and upgrades to state parks and recreational facilities. Of the $350 million, $100 million would go to low-income, environmental justice and urban communities to improve climate resiliency. A $100 million water and sewer infrastructure component also prioritizes projects that support environmental justice populations and those disproportionately impacted by the public health emergency.
Economic development With $777 million allocated for economic development, the House proposal includes a $500 million investment in the Unemployment Trust Fund, aid for the recovery of the cultural sector of the economy through the Massachusetts Cultural Council, funding for the YouthWorks summer jobs program, tax relief for small businesses, and money to help close the digital divide and assist in the resettlement of Afghan refugees.
Workforce The bill would focus $750 million on workforce issues, including $500 million for premium pay bonuses for essential workers who worked in-person during the state of emergency, as well as funds for the Workforce Competitive Trust Fund and career technical institutes and vocational schools.
Health and human services The bill targets relief for financially strained providers, such as hospital and nursing facilities, and investments in workforce initiatives, behavioral health programs, technical infrastructure for community health center improvements, prison reentry grants, and community-based violence prevention.
Education The House proposal seeks to address disparities in public school facilities, including $100 million for HVAC grants to be distributed through the Department of Elementary and Secondary Education under the guidance of the Racial Imbalance Advisory Council. Additional education investments include higher education capital projects, the endowment incentive program, special education needs, and pathways to educator licensure for Black, indigenous, and people of color.
Food insecurity The bill includes $78 million to address food insecurity, focusing on infrastructure grants.
Posted onMay 13, 2021|Comments Off on Medfield’s FY2022 Preliminary Cherry Sheet Estimates show a $130K increase over last year
These state aide estimates are from the Division of Local Services (DLS) at the Massachusetts Department of Revenue. Next a conference committee has to reconcile the different amounts proposed by the legislature and the senate. –
Comments Off on Medfield’s FY2022 Preliminary Cherry Sheet Estimates show a $130K increase over last year
Posted onMay 11, 2021|Comments Off on Senate W&M budget released
SENATE W&M COMMITTEE OFFERS $47.6B FY22 BUDGET WITH KEY INVESTMENTS IN MUNICIPAL & SCHOOL AID
• INCLUDES THE FULL $39.5M INCREASE IN UGGA • INCREASES CHAPTER 70 BY $220M ABOVE FY21,FUNDING THE STUDENT OPPORTUNITY ACT ON SCHEDULE • INCREASES CHARTER SCHOOL REIMBURSEMENTS BY $31.7M• ADDS $46M FOR STUDENT ENROLLMENT AND SUMMER SCHOOL GRANTS • INCLUDES $389M TO FUND THE SPECIAL EDUCATION CIRCUIT BREAKER• ADDS $1M TO McKINNEY-VENTO REIMBURSEMENTS OVER FY21 •ADDS $4M TO PILOT
May 11, 2021
Dear Osler Peterson,
Earlier today, the Senate Ways & Means Committee advanced a $47.6 billion fiscal 2022 state budget plan to the full Senate for consideration later this month. The plan would increase overall state expenditures by 2.6% over the current year’s budget, and reflects a 4.3% increase over the Governor’s January budget proposal. The SW&M budget matches the 3.5% increase in Unrestricted General Government Aid (UGGA) in the Governor’s and House budgets, would significantly increase Chapter 70 school aid, and includes $40 million in a one-time grant program targeting student enrollment decline.
The full Senate will start debate on the FY22 budget on Tuesday, May 25, and Senate members must file all budget amendments by 2 p.m. on Friday, May 14. The Senate usually considers over 1,000 amendments during budget debate week.
The SW&M budget would increase funding for other major aid programs by adding $220 million to Chapter 70 aid over FY21; $37 million in additional funds for Charter School Mitigation payments, and an additional $1 million for McKinney-Vento transportation for homeless students. To acknowledge student enrollment declines due to the public health emergency, S. 3 would set aside $40 million in a one-time reserve account to assist districts impacted by the decline, as well as $6 million in one-time grant funding for summer school and student mental health support. The proposal would also provide an increase of $1 million for public libraries and $1 million for regional public libraries. S.3 also proposes a $4 million increase for the Payment-in-Lieu-of-Taxes (PILOT) for state-owned land account.
The Senate Ways & Means budget would increase Chapter 70 aid by $220 million over FY21, bringing the total to $5.503 billion. S. 3 would fund the “goal rates” originally set forth in the Student Opportunity Act, which set a seven-year schedule that was to begin in FY21 but was sidelined last year due to the public health emergency. To get back on track, the MMA joined with other education advocates to ask the Legislature to fund Chapter 70 at an SOA implementation rate of one-sixth rather than one-seventh in order to return to the intended schedule. The House-Senate local aid agreement included a commitment to fund the Student Opportunity Act increases at one-sixth. S. 3 includes a one-time provision, introduced in the Governor’s budget and supported by the MMA, that would allow municipalities to use a portion of their school district’s Elementary and Secondary School Emergency Relief (ESSER II) federal grant award toward the increase from last year in their required local contribution. The House did not include this language.
Rural School Aid Rural School Aid is funded at $3 million, reinserting an important account for rural school districts, especially those struggling with declining enrollment. The Governor funded this account at $1.5 million, half of the FY21 appropriation, and the House did not include the line item.
Special Education Circuit Breaker S. 3 provides $387.9 million, including approximately $15 million funds carried over from the previous year, for the Special Education Circuit Breaker, reimbursing school districts for the high cost of educating students with disabilities at the statutorily required 75% reimbursement rate. This reimbursement rate, as well as the inclusion of costs associated with out-of-district transportation, reflect obligations outlined in the Student Opportunity Act. The total appropriation is higher than the budgets offered by the Governor and the House.
Charter Schools To address charter school mitigation payments, S. 3 includes $149.1 million to reimburse school districts at 75%, the rate set forth in year one of the Student Opportunity Act implementation schedule, for costs incurred when students leave to attend charter schools, which is $5 million below the House budget. The MMA points out that charter school finance presents a major challenge to many districts, in a number of cases negating the increases districts realize in Chapter 70 aid.
School Transportation The Senate Ways and Means budget decreases regional school transportation to $78.6 million. The House budget was higher at $82 million. The Senate Ways and Means budget would increase transportation for homeless students under McKinney-Vento by $1 million over FY21, to $14.4 million. Out-of-district vocational transportation is level-funded at $250,000.
PILOT Funding Increased Recognizing the importance of Payments-in-Lieu-of-Taxes (PILOTS) for state-owned land, the Senate Ways & Means Committee increased the line item to $35 million (a $4 million increase over FY21). The Governor’s budget had recommended level-funding at $31 million; the House increased the account to $33 million. Underfunding PILOT over the years has created a significant hardship for smaller communities with large amounts of state-owned property.
Shannon Grants, Cybersecurity, and Library Aid S. 3 includes level-funding for the Shannon grants for gang violence prevention and intervention, and includes critical funding for the Mass Cybersecurity Innovation Fund, which provides important outreach and training programs for municipalities. The accounts for public libraries and regional public libraries would each see an increase of $1 million, matching the House proposal.
SUMMARY It is clear that Senate leaders are prioritizing K-12 funding, unrestricted municipal aid and other increases for cities and towns, as they advance an agenda to ensure stability during a time of uncertainty. The local funding aid agreement reached by the Joint Ways and Means Committee last month, including commitments to UGGA, Chapter 70, and the acknowledgement of school enrollment challenges, creates a more stable budget-setting process for cities and towns in the weeks and months ahead. This progress is deeply appreciated. During the budget debate and legislative session, the MMA will work to build on this progress, and will continue to advocate for full funding of the education funding priorities outlined in the Student Opportunity Act, fixing the serious problems caused by the current charter school system, securing higher Chapter 70 minimum aid increases, achieving full funding for all municipal and school reimbursement programs including transportation accounts, and providing higher PILOT funding.
Please Call Your Senators Today to Thank Them for the Local Aid Investments in the Senate Ways and Means Committee Budget.
Please Explain How the Senate Ways and Means Budget Would Impact Your Community, and Ask Your Senators to Build on this Progress During the Budget Debate.
Posted onJuly 31, 2020|Comments Off on DLS on state aid this year
From DLS about the state aid for our current fiscal year that started 7/1/2020 –
Baseline FY21 UGGA and Chapter 70 Information Now Available
Dear Local Official,
I am writing to share that information about Fiscal Year 2021 (FY21) funding for Unrestricted General Government Aid (UGGA) and Chapter 70 education aid is now available on the Division of Local Services website.
While critical information from the federal government is still needed in order to finalize a full fiscal year budget for the Commonwealth, the Baker-Polito Administration and the Legislature are committing to no less than the Fiscal Year 2020 (FY20) level of funding for UGGA and Chapter 70 education aid as a baseline amount for FY21 funding.
The FY21 funding commitment also includes Chapter 70 increases for inflation and enrollment that will keep all school districts at foundation, under the law as it existed for FY20, providing an additional $107 million in aid over FY20. This increase comes in addition to approximately $450 million in new federal supports for K-12 schools to assist with educating students during the pandemic.
From the Massachusetts Municipal Association this afternoon –
STATE LEADERS ANNOUNCE LEVEL FUNDING FOR MAJOR LOCAL AID ACCOUNTS
FY21 UGGA TO BE LEVEL FUNDED AT FY20 AMOUNTS
FY21 CHAPTER 70 SCHOOL AID AT LEAST LEVEL FUNDED FOR ALL
July 30, 2020
After months of uncertainty regarding the size of the state’s fiscal crisis, state leaders today announced a framework for protecting the two main sources of local aid in the state’s fiscal 2021 state budget. According to a statement issued by A&F Secretary Michael Heffernan, the Governor and Legislature are committing to no less than level funding of Unrestricted General Government Aid and Chapter 70 education aid as the baseline amount for fiscal 2021 funding for each community.
Because of the difficulty in projecting tax collections, unanswered questions about whether the federal government will provide fiscal relief, and the unknown impact that the coronavirus will have this fall, the Legislature has enacted a bill to continue with a temporary budget through October 31. The state had previously adopted a one-twelfth budget through July, and has added a 3-month extension. This will give lawmakers and the Administration more time to gather information and shape their budget plans.
Knowing that local officials need firm information on local aid and school funding in order to finalize their municipal budgets, the state’s top leaders have joined together to provide guidance to cities and towns, and the news is good for communities.
In an alert issued via the Division of Local Services, the Baker-Polito Administration announced that House and Senate leaders and the Governor would be protecting the two major local aid accounts, UGGA and Chapter 70, from cuts as they set the state’s fiscal 2021 budget later this fall.
They announced that the $1.13 billion Unrestricted General Government Aid (UGGA) program will be level funded at fiscal 2020 amounts for all communities, and that all cities and towns will receive at least level funding of their Chapter 70 education aid. Some school districts will receive school aid increases due to inflation and enrollment under the current formula. In total, Chapter 70 school aid will increase by $107 million, bringing that account up to $5.28 billion.
The Governor-House-Senate framework closely matches the MMA’s request to state leaders, which the association delivered earlier this week. MMA has asked state leaders to protect local aid from cuts by preserving aid at fiscal 2020 levels at a minimum.
MMA immediately applauded the local aid framework, issuing the following statement:
“This is very welcome news for cities and towns in every corner of Massachusetts. With the state facing a budget shortfall of between $6 billion to $8 billion due to the COVID-19 recession, local leaders have been very concerned about the potential impact on local aid. Today, the Governor, House and Senate have demonstrated that the state-local relationship is a true partnership. “By protecting local aid during this crisis, the state will maintain vital financial support for cities and towns. With this key financial guidance, communities can finalize their fiscal 2021 budgets, allowing them to continue their work fighting the coronavirus pandemic and delivering the essential quality-of-life services that drive our economy. This framework will benefit every resident and business in the Commonwealth, and we are deeply grateful to Governor Baker and Lt. Governor Polito, Speaker DeLeo, President Spilka, House and Senate Budget Chairs Michlewitz and Rodrigues, and their colleagues in the Legislature.”
I attended at noon today a meeting of the Massachusetts Municipal Association’s Massachusetts Select Board Association (NB – MSA changed its name this year from “Selectmen”). Bleak news about the state budget and the financial aid we will get from the state next fiscal year starting July 1 – may be down 20% this coming year. The legislative delegation is coming to the Select Board meeting next Tuesday to personally share the bad news.
The only good news was at the end of this slide –
State Revenue and Budget Outlook
• Legislature has Announced that the Fiscal 2021 Budget Process is Delayed
• Administration & Legislative Budget Writers Held New Revenue
Hearing to Revisit Revenue Forecast, with $4B to $6B Shortfall Estimated
• State Budget Process Unclear (Joint Budget? Temporary Budgets?) • GOOD NEWS … $3.5 Billion in the State Rainy Day Fund should Help to Mitigate Fiscal 2020 Revenue Shortfalls (and Increased Expenditures) • GOOD NEWS … Massachusetts Received $2.67 Billion from the Federal CARES Act to Pay for Unexpected/Unbudgeted COVID-19 Expenses
I started this blog to share the interesting and useful information that I saw while doing my job as a Medfield select board member. I thought that my fellow Medfield residents would also find that information interesting and useful as well. This blog is my effort to assist in creating a system to push the information out from the Town House to residents. Let me know if you have any thoughts on how it can be done better.
For information on my other job as an attorney (personal injury, civil litigation, estate planning and administration, and real estate), please feel free to contact me at 617-969-1500 or Osler.Peterson@OslerPeterson.com.