Category Archives: State

CPA match at 29.7% – none for us

The state announced its matching money for Community Preservation Act towns – 29.7% on average, but Medway which is in for 3% CPA surcharges got over 40% matching money.

Medfield residents continue to pay our money in so it can go to other towns, and leave our potential state matching money on the table.


Statewide CPA Trust Fund Distribution Announced

State-House-smaller_1 (1)

November 17, 2015:  The Massachusetts Department of Revenue (DOR) has released the Community Preservation Trust Fund distribution for each CPA municipality. The revenue from this year’s trust fund distribution comes from two sources: document recording fees collected over the past 12 months at the state’s Registries of Deeds, and a transfer of $10 million from the state’s FY2015 budget surplus. In total, more than $36 million will be distributed to the 156 communities eligible for a distribution this year.

All CPA communities will receive a 29.7% match on round one of the trust fund distribution this year.  Communities that adopted CPA with a full 3% local property tax surcharge will receive a higher percentage.  Click on the link below for details on this year’s distribution and a way to view the specific amounts for each community.

> SPREADSHEET: Click here for the CPA Trust Fund distribution amount for each municipality <

PLEASE NOTE:  According to a statement from DOR, this year’s CPA Trust Fund distribution amount for most communities was adjusted due to an update to FY2015 data after last year’s distribution was made. The adjustment was necessary because the surcharge percentage was incorrectly calculated in one community and another community did not notify DOR that they had adopted CPA and were therefore not included in last year’s distribution.

Met with MA Secretary of Housing & Economic Development

Jay Ash

Yesterday morning Mike Sullivan, Richard DeSorgher and I met with Jay Ash, the Massachusetts Secretary of Housing and Economic Development to learn what the state can do to assist Medfield with our economic development and housing issues (see photo above).

After that four town meeting (Wrentham, Norfolk, Walpole, and Medfield) at the Wrentham Town Hall, Medfield showed the Secretary the former Medfield State Hospital site (see photo below).

Jay Ash at MSH

My main take aways:

  • the opportunities to get the MSH site listed as ready for development on the MassEcon 100,
  • to have the man who talks to more developers than any one else in the state be able to talk up our site, and
  • to just have the man who administers all state economic development and housing monies know about the MSH site and its expected development so he can help get the word out and be knowledgeable if and when grant applications are made.

Interesting tidbits learned during the discussions:

  • Electric Time reportedly could not complete on price with what The Parc was willing to pay for that site, so an industrial site became a residential site, and
  • Walpole is negotiating with an international company to site a facility that will provide 600 jobs – company is looking for 90% reduction in its taxes.

Community Compact

community compart-2

The Baker Polito administration initiated the Community Compact  to provide state assistance to towns.  Medfield has now applied to be a member, and specified the three areas with which Medfield wants state assistance:

  • capital planning
  • transperancy
  • citizen engagement

This was the state response today to Medfield’s application to join –


Dear Kristine Trierweiler,

Thank you for completing the Community Compact application for Medfield. Your application is now with the Division of Local Services for review.

According to your submission the Best Practices you will commit to are:

Best Practice #1 –  Financial Management

Capital Planning // Best Practice: Funding capital needs on a regular basis is critical to maintaining publicly-owned assets and delivering services effectively. The community develops and documents a multi-year capital plan that reflects a community’s needs, is reviewed annually and fits within a financing plan that reflects the community’s ability to pay.

Best Practice #2 (optional) –  Information Technology

Transparency // Best Practice: There is a documented open data strategy including timelines for making municipal spending and budget information accessible from the city or town website in a machine readable and graphical format.

Best Practice #3 (optional) –  Information Technology

Citizen Engagement // Best Practice: There is a documented citizen engagement strategy for deployment of technology solutions, including a public communication strategy and a professional development strategy to ensure that internal resources can effectively engage with users via technology.

As part of the review process, the Division of Local Services may be contacting Kristine Trierweiler with follow-up questions.  Once the review of your application is complete and the best practice area(s) are agreed upon, I will be in touch regarding the signing of the Compact. We are looking forward to working with your community as you continue to strive toward excellence!

Sincerely,

Sean Cronin
Senior Deputy Commissioner of Local Services
Division of Local Services

Selectman education

This past month I attended two almost day long programs designed to educate municipal officials.  The state and the MMA both seek to assist local officials to learn how to do a better job.

MMA

  • Massachusetts Selectman Association (part of the Massachusetts Municipal Association). There I got an update on legislation issues from the MMA’s executive director, heard from the Lt. Governor about their Community Compact initiative (Medfield will join), and attended workshops on budgeting and communicating.

DLS

  • Massachusetts DOR’s Division of Local Services annual legal update, which DLS describes below –  I opted for the OPEB workshop.

Local Officials Gather to Hear “What’s New in Municipal Law”
Municipal Finance Law Bureau

Over 400 local officials attended the 30th annual “What’s New in Municipal Law” seminars held on October 1, 2015 at The Log Cabin Banquet and Meeting House in Holyoke and October 8th, 2015 at The Lantana in Randolph.

In the morning general sessions, they heard Municipal Finance Law Bureau attorneys Kathleen Colleary, Bureau Chief, Gary Blau, James Crowley, John Gannon, Donald Gorton and Patricia Hunt review new legislation and recent court and Appellate Tax Board cases. In the afternoon session, the attorneys led three workshops on (1) assessing condominiums and time-shares, and collecting personal property taxes, (2) adopting and amending municipal operating and capital budgets; and (3) negotiating and funding retiree post-employment benefits.

If you were not able to attend one of this year’s seminars, the morning presentation materials and afternoon workshop booklets are available on our website.

We look forward to seeing you at the 31st annual “What’s New in Municipal Law” seminar next fall. The dates to save are Thursday, September 29th, 2016 at The Log Cabin Banquet and Meeting House in Holyoke and Thursday, October 6th, 2016 at The Lantana in Randolph.

$49K more state $ for last winter

Governor Baker has proposed $25m. of supplemental FY15 monies for snow relief, that would mean $49,474 for Medfield.  This is the full alert this afternoon from the Massachusetts Municipal Association:


Friday, July 17, 2015

GOV. BAKER SIGNS $38.1B FY 2016 STATE BUDGET TO FUND KEY MUNICIPAL AND SCHOOL AID PROGRAMS

***BREAKING NEWS: GOV. BAKER ALSO PROPOSES $25M IN SNOW AND ICE RELIEF FUNDS IN YEAR-END FY 2015 BUDGET FILING***

NEW STATE BUDGET INCREASES UGGA BY $34M, ADDS $18.1M TO FULLY FUND SPECIAL EDUCATION CIRCUIT BREAKER, RESTORES $7.5M TO REGIONAL SCHOOL TRANSPORTATION, FUNDS CH. 70 MINIMUM AID AT $25 PER STUDENT, ADDS $3.6M TO CHARTER SCHOOL REIMBURSEMENTS – HOWEVER, GOVERNOR REDUCES KINDERGARTEN DEVELOPMENT GRANTS DOWN TO $1 MILLION – A $17.6M REDUCTION

GOVERNOR BAKER ALSO FILED A YEAR-END FISCAL 2015 BUDGET WITH $25M TO ASSIST CITIES AND TOWNS WITH SNOW AND ICE DEFICITS, TO BE DISTRIBUTED THROUGH THE CHAPTER 90 FORMULA – LEGISLATIVE APPROVAL IS NEEDED

Seventeen days into the new fiscal year, Governor Charlie Baker signed the first full-year state budget into law, a $38.1 billion spending plan for fiscal 2016 that will increase overall expenditures by approximately 3.5 percent, as the state closes a projected $1.8 billion structural budget deficit by restraining spending and eliminating up to 5,000 state jobs through a hiring freeze, attrition and an early retirement program.

In terms of local aid, the Governor’s signature pen inked into law strong progress on many important municipal priorities, including the significant victory in embracing the $34 million increase in Unrestricted General Government Aid as proposed by Gov. Baker and requested by the MMA. Beyond that, the Governor has approved more than $30 million to key municipal and education aid accounts and reimbursement programs above the amount he initially in his March budget proposal. This is a major victory for cities and towns that was made possible by your strong advocacy.

In a win for Gov. Baker, the Legislature’s budget includes a three-year suspension of the Pacheco anti-outsourcing law for the MBTA, and provides for a Fiscal and Management Control Board to oversee the MBTA.

GOV. PROPOSES $25M IN SNOW AND ICE RELIEF FUNDS FOR CITIES AND TOWNS ACROSS THE STATE:

AT THE SAME TIME THE GOVERNOR SIGNED THE FISCAL 2016 STATE BUDGET INTO LAW, HE ALSO FILED A YEAR-END FISCAL 2015 SUPPLEMENTAL BUDGET TO CLOSE THE BOOKS ON THE YEAR THAT JUST ENDED. BECAUSE OF THE RECORD-BREAKING WINTER AND RECORD-BREAKING SNOW AND ICE DEFICITS AT THE LOCAL LEVEL, GOV. BAKER’S FISCAL 2015 SUPPLEMENTAL BUDGET INCLUDES $25 MILLION IN ADDITIONAL RELIEF FOR CITIES AND TOWNS, WHICH WOULD BE DISTRIBUTED STATEWIDE THROUGH THE CHAPTER 90 FORMULA.

PLEASE CLICK HERE TO SEE YOUR COMMUNITY’S SHARE OF GOV. BAKER’S PROPOSED $25 MILLION IN SNOW AND ICE RELIEF FUNDING, INCLUDED IN HIS BUDGET SUBMISSION LETTER: http://www.mass.gov/anf/docs/anf/fy15/fy2015-supplemental-filing-letter.pdf

PLEASE CALL YOUR LEGISLATORS AND ASK THEM TO SUPPORT THE GOVERNOR’S PROPOSAL FOR SNOW AND ICE RELIEF FUNDS

FINAL FY 2016 STATE BUDGET FUNDS KEY MUNICIPAL AND SCHOOL AID PROGRAMS:

IN TERMS OF THE FISCAL 2016 STATE BUDGET THAT GOV. BAKER SIGNED INTO LAW TODAY, HERE IS A SUMMARY OF THE KEY MUNICIPAL AND SCHOOL FUNDING INCLUDED IN THE FINAL BUDGET:

$34 MILLION INCREASE IN UNRESTRICTED MUNICIPAL AID
In a major win for cities and towns, the final budget provides $979.8 million for UGGA, a $34 million increase over current funding.  This will be the largest increase in discretionary municipal aid in nearly a decade.  Every city and town will see their UGGA funding increase by 3.6 percent.

GOVERNOR EMBRACES $18.3 MILLION INCREASE TO FULLY FUND SPECIAL EDUCATION CIRCUIT BREAKER
In another victory for cities and towns, the final budget would fully fund the Special Education Circuit Breaker program with $271.7 million, an $18.3 million increase above fiscal 2015.  This is a vital program that every city, town and school district relies on to fund state-mandated services.

BUDGET ADDS $7.5 MILLION FOR REGIONAL SCHOOL TRANSPORTATION REIMBURSEMENTS
The final budget would restore $7.5 million to regional school transportation funding, providing a total of $59 million for the upcoming year.  Last November, former Gov. Patrick used his 9C budget powers to reduce this important program down to $51.5 million.  The final budget is a major step forward for communities with regional school districts.

GOVERNOR BACKS CHAPTER 70 MINIMUM AID OF $25 PER STUDENT
The final fiscal 2016 budget provides a $111.2 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $25 per student, an improvement over the $20 per student amount originally proposed in March.  The appropriation is $5.9 million more than the recommendation in March, and the increase would be used to ensure the $25 per student minimum aid level and to slightly accelerate the implementation of the target share provisions enacted in 2007.

GOVERNOR REDUCES KINDERGARTEN DEVELOPMENT GRANTS DOWN TO $1 MILLION, A CUT OF $17.6 MILLION
This account has faced serious challenges during the fiscal 2016 budget process, with Gov. Baker’s original budget proposal including no funding for the Kindergarten Development Grant program, and the Senate budget funding the program at $1 million.  Only the House budget maintained funding at the fiscal 2015 level of $18.6 million.  177 communities and school districts depend on these funds, and the MMA and cities and towns will be calling on their legislators to override this $17.6 million reduction, and restore the funds.

BUDGET INCREASES CHARTER SCHOOL REIMBURSEMENTS BY $3.64 MILLION, ACCOUNT REMAINS 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 2013 and 2014, but is underfunding reimbursements by approximately $34 million this year (fiscal 2015).  The final fiscal 2016 budget will provide a $3.64 million increase up to $80.5 million, however this is still $50 million below full funding.  The action to increase funding is appreciated, yet it is important to remember that the account is still significantly underfunded.

STATE ADDS $1 MILLION TO McKINNEY-VENTO REIMBURSEMENTS
The final budget would add $1 million to increase fiscal 2016 reimbursements for the transportation of homeless students to $8.35 million.  The account remains below the full reimbursement called for under the state’s unfunded mandate law, yet this would be the first increase since fiscal 2013.

PAYMENTS-IN-LIEU-OF-TAXES (PILOT), LIBRARY AID ACCOUNTS, METCO, AND SHANNON ANTI-GANG GRANTS, VOKE ED TRANSPORTATION
PILOT PAYMENTS: The final budget would level-fund PILOT payments at $26.77 million.
LIBRARY AID: The budget funds library grant programs at $18.9 million, a $400 thousand increase above fiscal 2015 post-9C levels.
METCO: The final budget funds METCO at $20.14 million, a $2.23 million increase above fiscal 2015 post-9C levels.
SHANNON GRANTS: The final appropriation is $7 million, the same amount proposed by Gov. Baker in March.
VOCATIONAL EDUCATION TRANSPORTATION: Last year, Gov. Patrick wiped out all fiscal 2015 funding using his 9C powers, and the good news is that the fiscal 2016 budget would restore $1.75 million for fiscal 2016.

STATE MAY PROVIDE UP TO $10M FOR COMMUNITY PRESERVATION ACT FUNDING
During fiscal 2015, 156 cities and towns collected the local Community Preservation Act (CPA) surcharge and are eligible for state matching grants in fiscal 2016.  The Division of Local Services (DLS) estimates that the balance in the state trust fund will be sufficient to provide a first round match of only 18 percent of the surcharge levied by each city and town.  This would be the lowest state match in the program’s history.  Knowing this, the fiscal 2016 state budget would devote up to $10 million of any fiscal 2015 year-end state budget surplus to supplement the fiscal 2016 state match, a significant boost for all CPA communities.  The final amount available will depend on the final fiscal 2015 surplus, which will not be determined until later this autumn.

Please Call Your Legislators and Thank Them for a Strong Fiscal 2016 State Budget that Makes Progress on Key Municipal and Education Aid Priorities, and Ask Them to Support Gov. Baker’s Proposed $25 Million for Snow and Ice Funding in the Fiscal 2015 Year-End Budget

House budget passed

The Mass. Municipal Association has analyzed and sent out an alert on the House budget, and its inadequacies.  The main MMA issues continue to be the lack of proper financial support by the state for the towns, and mainly education funding.  The Governor’s budget proposed a $20/child increase in education funding, the House proposes a $25/child increase, and the MMA says it really should be $100/child, but at the very least a $50/child increase.

This was the MMA alert yesterday analyzing the House budget –


Thursday, April 30, 2015

HOUSE PASSES $38.1B FY 2016 STATE BUDGET THAT INCLUDES FUNDING FOR KEY MUNICIPAL AND SCHOOL AID PROGRAMS

BUDGET AND LOCAL AID ACTION NOW GOES TO THE SENATE:
PLEASE CALL YOUR SENATORS TODAY AND URGE THEM TO INVEST IN CITIES AND TOWNS

Late yesterday afternoon, after 3 days of deliberation on 1096 amendments, the members of the House of Representatives unanimously adopted a trim $38.1 billion fiscal 2016 state budget plan that is nearly identical to the House Ways and Means draft (H. 3400) that was unveiled 2 weeks ago.

The House-passed budget would increase overall state expenditures by less than 3 percent, as the state seeks to close a projected $1.8 billion structural budget deficit by restraining spending and eliminating 4,500 state jobs through an early retirement program. The final House budget is several million dollars smaller than the budget filed by Governor Baker in March.

The action now turns to the state Senate. The Senate Ways & Means Committee is expected to release its proposed budget by mid-May, and the full Senate will pass its version before the end of the month.

The House budget provides strong progress on many important local aid priorities, while there are still a number of issues where further action or additional funding is needed.

Here is a summary and status of the key municipal and school funding issues in the fiscal 2016 state budget as adopted by House of Representatives on Wednesday:

$34 MILLION INCREASE IN UNRESTRICTED MUNICIPAL AID
In a major win for cities and towns, the House budget supports $979.8 million for UGGA, a $34 million increase over current funding – the same increase proposed by Governor Baker.  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 3.6 percent.

$8.3 MILLION INCREASE INTENDED TO FULLY FUND SPECIAL EDUCATION CIRCUIT BREAKER
In another victory for cities and towns, House members supported full funding for the Special Education Circuit Breaker program.  Their budget plan would provide $261.7 million, an $8.3 million increase above fiscal 2015, 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.

RESTORES $5 MILLION TO REGIONAL SCHOOL TRANSPORTATION
Last November, former Gov. Patrick used his 9C budget powers to eliminate the $18.7 million increase regional school transportation reimbursements that the Legislature originally enacted for fiscal 2015, reducing the final amount to $51.5 million.  The Governor proposed level funding at $51.5.  Recognizing the importance of this funding, the final House budget would restore $5 million to bring regional transportation reimbursements up to $56.5 million.  A proposed amendment to increase funding by another $4 million did not pass during the House budget debate.

RESTORES $18.6 MILLION TO KINDERGARTEN DEVELOPMENT GRANTS
The House budget would restore $18.6 million to the Kindergarten Development Grant program.  The Governor’s budget would have eliminated all funding, and House members want to level-fund the current appropriation, at least for the next year.  This is an important account, because eliminating the $18.6 million would have jeopardized expanded kindergarten programs all throughout the state.

CHAPTER 70 MINIMUM AID WOULD INCREASE TO $25 PER STUDENT
The House budget supports a $108.2 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $25 per student.  This is $2.9 million more than the recommendation in the Governor’s budget submission, which included minimum aid of only $20 per student.  During the debate, the House did not adopt an amendment to raise minimum aid to $50 per student. Because most cities and towns only receive minimum aid, the MMA is calling for at least $50 per student minimum aid in the Legislature’s final budget.

McKINNEY-VENTO REIMBURSEMENTS WOULD INCREASE BY $1 MILLION
The final House budget would add $1 million to increase fiscal 2016 reimbursements for the transportation of homeless students to $8.4 million.  While the account remains below the full reimbursement called for under the state’s unfunded mandate law, it would be the first increase since fiscal 2013.  The House did not pass a proposed amendment to fully fund the account.

CHARTER SCHOOL REIMBURSEMENTS REMAIN SERIOUSLY 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 2013 and 2014, but is underfunding reimbursements by approximately $34 million this year.  Both the Governor and the House Ways and Means budgets would level-fund charter school reimbursements at $76.8 million, which would guarantee another major shortfall in fiscal 2016, and result in cutbacks for the majority of students who remain in the traditional school setting.  Increasing this account was a top priority for municipalities and school districts during the budget debate, but House members rejected an amendment that would have raised funding up to $130.5 million.  This will continue to be a major budget issue as debate turns to the Senate.

PAYMENTS-IN-LIEU-OF-TAXES (PILOT), LIBRARY AID ACCOUNTS, METCO, AND SHANNON ANTI-GANG GRANTS
The House budget would level fund PILOT payments at $26.77 million, continue to fund library grant programs at $18.5 million, and restore funding for METCO to $20.14 million. During debate, the House adopted an amendment to add $1 million to the Shannon anti-gang grant program, providing a final appropriation of $6 million, which is still $1 million below current fiscal 2015 (post-9C) funding.

PROTECTION OF MUNICIPAL EMERGENCY MEDICAL SERVICES
During the budget debate, Representatives approved an amendment adding an outside section that would prevent the practice of “pay the patient” by insurance companies, which undermines the ability of cities and towns to fund and operate effective and efficient ambulance services that are at the core of emergency medical response in Massachusetts. “Pay the patient” would force communities to pursue their own residents to recoup thousands of dollars in ambulance expenses, a system that is inefficient and subject to abuse.  The amendment would also clarify that municipalities are authorized to set a fair rate for ambulance services, preventing insurance companies from shifting costs to local property taxpayers through below-cost reimbursements.

COMMUNITY PRESERVATION ACT FUNDING COULD RECEIVE $10 MILLION
During fiscal 2015, 156 cities and towns collected the local Community Preservation Act (CPA) surcharge and are eligible for state matching grants in fiscal 2016.  The Division of Local Services (DLS) estimates that the balance in the state trust fund will be sufficient to provide a first round match of only 18 percent of the surcharge levied by each city and town.  This would be the lowest state match in the program’s history.  Knowing this, House members voted to dedicate up to $10 million of any fiscal 2015 year-end state budget surplus to supplement the fiscal 2016 state match.

Please Call Your Senators Today and Urge them to Support Essential Funding for Municipal and Education Aid – Including the $34 Million Increase in Unrestricted Local Aid, Full Funding for the Special Education Circuit Breaker, Restoring Kindergarten Grants, and Adding Funds to Regional School Transportation

Please Explain How the House Budget Impacts Your Community, and Ask Your Senators to Build on this Progress with Further Increases for Charter School Reimbursements, Chapter 70 Minimum Aid, Regional School Transportation and Other Key Accounts

Thank You!

MMA on state budget

This today from the Massachusetts Municipal Association on what is important to towns in the state budget.  Highlights are the $50/pupil minimum state funding for education (currently it is at $25/pupil) and $25m. for the CPA –


Thursday, April 23, 2015

HOUSE DEBATE ON FY 2016 STATE BUDGET BEGINS MONDAY – CALL YOUR REPS.

Lawmakers Will Decide the Fate of 1,096 Amendments

Please Call Your Representatives Today on the Budget Amendments that Impact Key Municipal and School Priorities

The House of Representatives will begin debating the $38 billion fiscal 2016 state budget on Monday, April 27. The deliberations are expected to take several days, as Representatives have filed 1,096 amendments to make changes to H. 3400, the House Ways & Means Committee’s budget recommendation that was released last week.

Many of these amendments would directly impact cities and towns, including a number of welcome amendments that would increase funding for municipal and school aid accounts, and an unwelcome amendment that would have a negative impact on municipalities. This Legislative Alert describes the most important amendments that will be debated.

Please Call Your Representatives Today

Please call your Representatives as soon as possible today to secure their support for those amendments that would help your community, and ask them to oppose those amendments that would be harmful.

Lawmakers must hear from you on these issues. Because of the great number of amendments, the summaries here are very brief. Please contact MMA Legislative Director John Robertson at jrobertson@mma.org or 617-426-7272 x122 at any time if you have questions or need more details.

When you call your Representatives, please make sure to thank them for the proposals in the House budget to increase Unrestricted General Government Aid by $34 million (matching the Governor’s recommendation), for the $8.3 million increase intended to fully fund the Special Education Circuit Breaker, and for restoring $18.6 million to Kindergarten Development Grants.

Please Click Here to Download a Copy of the MMA’s Budget Letter to the House

Please Click Here to Visit the House Budget Website to See the Amendments: The House budget committee recommendation (H. 3400) and all proposed amendments are posted on the Legislature’s website at: http://malegislature.gov/Budget/FY2016/House/ChamberActions

KEY BUDGET AMENDMENTS ON SCHOOL AND EDUCATION FUNDING
Adequate Chapter 70 Minimum Aid for Municipal and Regional Schools
The MMA is calling for a sufficient funding increase for Chapter 70 school aid to ensure that all municipal and regional school districts are able to reach the “foundation” level of spending, implement the equity provisions adopted in 2006, and provide an adequate amount of minimum aid that ensures that all schools receive an increase in fiscal 2016.

The Governor proposed a fiscal 2016 Chapter 70 increase of $105.3 million, which includes minimum aid of only $20 per student for 245 cities, towns and school districts, an insufficient amount to maintain current school staffing and services.  The HW&M recommendation would increase minimum aid to $25 per student, but in reality this still leaves too many schools unable to maintain quality school programs.  Recognizing that the Foundation Budget Review Commission will not file its report until mid-2015, far past the deadline for inclusion in the fiscal 2016 state budget, the MMA is urging the House to adopt a higher minimum aid amount to prevent further erosion in school financing at the local level.

• Please ask your Representatives to Support Amendment 663 filed by Rep. Cutler and others to increase the “minimum aid” amount to $50 per student.  This amendment would benefit 245 cities, towns and school districts, and give these communities a better chance of maintaining the quality of their existing education programming.

Reimbursements for Charter School Losses
The diversion of Chapter 70 school aid away from public schools to pay tuition to charter schools has imposed a major and growing financial burden on cities and towns, a problem made more acute as the state grants more charters and existing charter schools expand.  Local officials strongly support full funding of the Commonwealth’s commitment under section 89 of Chapter 71 of the General Laws to reimburse school districts for the loss of a portion of their Chapter 70 aid that is redirected to fund charter schools.

In fiscal 2015, it is expected that cities and towns will be forced to divert $444 million to fund charter schools, 10 percent of all Chapter 70 dollars.  This illustrates the importance of this issue to local governments, and why it is critical for the state to meet its commitment to this program.  The original $80 million appropriation in the fiscal 2015 general appropriations act was $30.5 million below the full funding amount required in the statutory formula, which was signed into law only a few years ago.  The problem has deepened with two rounds of 9C cuts to this account ($3.1 million), increasing the fiscal 2015 shortfall to at least $33.6 million.

The funding shortfall means that cities and towns are receiving only a fraction of the reimbursements due according to state law.  This is impacting a large number of communities, including some the state’s poorest and most financially distressed cities and towns.  Thus, the underfunding of the charter school reimbursement formula is harming the most vulnerable and challenged school districts and communities.

The Governor’s fiscal 2016 budget would level fund charter school reimbursements at $76.9 million, even though local payments to charter schools are expected to increase by $55 million.  Full funding of the statutory formula would require $130.5 million.  Without these funds, cities and towns will face another major shortfall next year, and result in cutbacks for the vast majority of students who remain in the traditional public school setting.  The HW&M budget includes the Governor’s recommendation for this account.

• Please ask your Representatives to Support Amendment 822 filed by Rep. Ultrino and others, and Amendment 795 filed by Rep. Malia and others.  These critical amendments would fully fund charter school reimbursements due to cities, towns and regional school districts by providing the full $130.5 million necessary to meet the state’s obligation.

McKinney-Vento Homeless Student Transportation Costs
In fiscal 2013, the state budget provided $11.3 million to fully fund the state-mandated costs that resulted from the Commonwealth’s adoption of the federal McKinney-Vento Act. The State Auditor ruled that the McKinney-Vento program was an unfunded mandate on cities and towns, and the Legislature provided full funding soon after that ruling.  Under the program, communities are providing very costly transportation services to bus homeless students to schools outside of the local school district.  However, the fiscal 2014 state budget reduced McKinney-Vento reimbursements to $7.4 million, underfunding this state mandate.  Full funding for this year is estimated at $19.8 million, but the Commonwealth level-funded the program at $7.35 million, creating a shortfall of $12.5 million in the current fiscal year.

The Governor proposed a $1 million increase for fiscal 2016 to bring funding for McKinney-Vento reimbursements up to $8.4 million, which is the amount provided in H. 3400.  Full funding for this state mandate would require $20.8 million, according to the most recent DESE projection.

• Please ask your Representatives to Support Amendment 620 filed by Rep. Heroux and others that would fully fund reimbursements due to municipalities and school districts for the cost of transporting homeless students from temporary shelters to school.

Regional School District Student Transportation Reimbursements
Funding for transportation reimbursements to regional school districts is vital to all regional districts and their member cities and towns, particularly in sparsely populated parts of the state.  The Legislature appropriated $70.3 million for fiscal 2015, but, unfortunately, Governor Patrick used his 9C powers to cut the amount in November by 27 percent, an unexpected $18.7 million loss, returning the program to fiscal 2014 levels just months after coming closer to full funding. Decades ago, the state promised 100 percent reimbursement as an incentive for towns and cities to regionalize, and the consistent underfunding of this account has presented serious budget challenges for these districts, taking valuable dollars from the classroom.  Governor Baker’s budget proposal would level-fund regional school transportation reimbursements at $51.5 million, dropping the reimbursement percentage down to 64 percent.  The House Ways and Means Committee would restore $5 million to this key program in fiscal 2016, and bring funding up to $56.5 million, a positive and helpful increase, yet still below the funding needed.

• Please ask your Representatives to Support Amendment 744 filed by Rep. Benson and others that would increase transportation reimbursements to regional school districts by an additional $4 million to bring fiscal 2016 funding to $60.5 million.

Out-of-District Vocational Education Student Transportation
The fiscal 2015 state budget included $2.25 million item to reimburse communities for a portion of the $3.8 million cost of transporting students to out-of-district placements in vocational schools, as mandated by state law.  This account recognizes the significant expense of providing transportation services for out-of-district placements, as these students must travel long distances to participate in vocational programs that are not offered locally. Governor Patrick slashed all funding with his November 9C cuts, a painful mid-year loss.  The Governor’s fiscal 2016 recommendation and the HW&M budget do not include any funding.

• Please ask your Representatives to Support Amendment 151 filed by Rep. Durant and others to fully fund the $3.9 million cost of transporting students to out-of-district placements in vocational schools.

Kindergarten Expansion Grants
Cities, towns and regional school districts across the Commonwealth use this important grant program to support full-day access to local kindergarten programs.  Funding for the program in the fiscal 2015 general appropriations act was $23.9 million before being reduced through two rounds of 9C cuts to $18.6 million.  The Governor’s budget recommendation would eliminate all funding in fiscal 2016, an extremely disruptive step that would force participating communities to immediately decide whether to end or scale back their current kindergarten programs or cut other school and classroom services.  The MMA applauds the recommendation in H. 3400 to restore funding for Kindergarten Development Grants to the fiscal 2015 post 9C level of $18.6 million, and is asking House members to restore the program to the original $23.9 million level.

• Please ask your Representatives to Support Amendment 502 filed by Rep. DiNatale and others to level fund this accounts at the original fiscal 2015 appropriation.

KEY BUDGET AMENDMENTS ON MUNICIPAL AID PROGRAMS AND
MUNICIPAL MANAGEMENT POLICY

Please ask your Representatives to Oppose Amendment 601, Which Would Circumvent and Weaken Municipal Personnel Law by Allowing Tobacco Users to Qualify for the Public Safety Heart-Lung and Cancer Presumptions

Because of special provisions in state law that established a work-related presumption for heart and lung disease for public safety personnel, state law mandates a no smoking rule for public safety employees.  Under Chapter 32 of the General Laws, any police officer or firefighter with heart disease and any firefighter with lung disease or lung cancer is automatically eligible for a disability pension, but the enactment of these presumptions included an absolute ban on the use of tobacco products because smoking and tobacco use is the primary and overwhelming cause of heart and lung disease and cancer. Under Section 101A of Chapter 41, employees who violate this strict prohibition are subject to dismissal.  This has been the law since 1988.

But Amendment 601 would reverse 27 years of standing law and personnel policy, and instead mandate that a smoking cessation program be offered to those who violate the policy while keeping the presumption in place for these employees, in spite of their use of tobacco products.  All public safety personnel are aware of the no smoking rule, and violations must be addressed fully because the special treatment and protections that are in place were granted only on the condition that these employees refrain from tobacco use.  Amendment 601 would remove a very important taxpayer protection, and should be rejected.

• Please ask your Representatives to Oppose Amendment 601, which would significantly weaken the smoking prohibition for public safety employees.

Payments-in-Lieu-of-Taxes (PILOT)
The Payment-in-Lieu-of-Taxes (PILOT) program 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.  This account is underfunded at $26.77 million this year, and is still below fiscal 2008 funding.  Many of our state’s smallest communities rely heavily on PILOT payments, and shortfalls in this account have a significant impact on their ability to deliver basic municipal services.  House One and H. 3400 would level fund PILOT at $26.77 million.

• Please ask your Representatives to Support Amendment 961 filed by Rep. D’Emilia to add $3.5 million to increase PILOT payments to cities and towns, and bring the account up to $30.3 million.

Shannon Anti-Gang Grants
• The Shannon Grant program has been very effective in enabling cities and towns to respond to and suppress gang-related activities.  Please ask your Representatives to Support Amendment 945 filed by Rep. Brady and others to increase funding for the Shannon anti-gang grant program.  This amendment would add $3.25 million and bring total funding up to $8.25 million, which is the original fiscal 2015 appropriation.

Safe and Successful Youth Initiative
• Please ask your Representatives to Support Amendment 907, filed by Rep. Vega and others to increase funding of the Safe and Supportive Youth Initiative from $6 million to $9.5 million. The program seeks to reduce youth violence through wrap-around services for those most likely to be victims or perpetrators, and is vital to violence prevention efforts in dozens of communities.

Summer Jobs for At-Risk Youth
• Please ask your Representatives to Support Amendment 572 filed by Rep. Scibak and others to increase funding for youth summer jobs from $9 million to $12 million. This funding is critical to providing employment opportunities for at-risk teenagers in our cities and towns, especially with youth unemployment rates climbing.

Protection of Municipal Emergency Medical Services
• Please ask your Representatives to Support Amendment 1040 filed by Rep. Cantwell of Marshfield and others that would prevent the practice of “pay the patient,” by insurance companies, which undermines the ability of cities and towns to fund and operate responsive and efficient ambulance services that are at the core of emergency medical services in Massachusetts. “Pay the patient” would force communities to pursue their own residents to recoup thousands of dollars in ambulance expenses, a system that is inefficient and subject to abuse.  Amendment 1040 would also clarify that municipalities are authorized to set a fair rate for ambulance services. Cities and towns set fees and charges for a wide variety of municipal services very strictly limited by state law to the cost of providing the service. This is the same rule that would apply to rate setting for emergency ambulance services. It would ensure that rates are reasonable and prevent insurance companies from shifting costs to local property taxpayers through below-cost reimbursements.

KEY BUDGET AMENDMENTS ON CAPITAL SPENDING PRIORITIES

Brownfields Redevelopment Funds
• Please ask your Representatives to Support Amendment 753 filed by Rep. Walsh and others to increase available funding for brownfield redevelopment projects.  This funding is critical to the successful redevelopment of former industrial sites and will enhance local economic development efforts across the state, and improve the environment.  This amendment would appropriate $15 million to recapitalize the Brownfield Redevelopment Fund.

Community Preservation Act Funding
During fiscal 2015, 156 cities and towns collected the local Community Preservation Act (CPA) surcharge and are eligible for state matching grants in fiscal 2016.  The Division of Local Services (DLS) estimates that the balance in the state trust fund will be sufficient to provide a first round match of only 18 percent of the surcharge levied by each city and town.  This would be the lowest state match in the program’s history.

• Please ask your Representatives to Support Amendment 881 filed by Rep. Kocot and others that would dedicate a portion of any fiscal 2015 year-end state budget surplus, up to $25 million, to supplement the fiscal 2016 state match.  The fiscal 2014 state match was supplemented by $25 million from the fiscal 2013 year-end surplus, and $11.4 million was made available last year from the fiscal 2014 surplus.

Please Call Your Representatives Today on the Budget Amendments that Impact Your Community!

 Thank You!

MMA on House budget

The annual state budget process starts with the Governor’s proposed budget, followed next by the House version, then next by the Senate version, and the final result from the House/Senate committee set up to resolve the two versions.  This year we are now up to the House version, and below is the Massachusetts Municipal Association’s comments on that House version.

To put state aid to towns in its recent context, while the state revenues have now recovered to be above the levels existing before the Great Recession, the state’s revenue sharing aid to municipalities still lags far behind the pre-2007 levels.  The general result of that lower state aid is that the state has effectively transferred to cities and towns the cost of providing the required municipal services.  Towns must then either opt to provide less service, or tax our residents more via property taxes to get the same level of service as before the Great Recession.

If residents do not like their property taxes rising, they should have a discussion with their state legislators to ask for a return to pre-2007 state aid levels.


Wednesday, April 15, 2015

HOUSE BUDGET COMMITTEE OFFERS $38B FY 2016 STATE BUDGET THAT MAKES KEY INVESTMENTS IN MUNICIPAL AND SCHOOL AID
• INCLUDES THE FULL $34M INCREASE IN UNRESTRICTED MUNICIPAL AID (UGGA)
• ADDS $8.3M TO SPECIAL EDUCATION CIRCUIT BREAKER
• RESTORES $5M TO REGIONAL SCHOOL TRANSPORTATION
• RESTORES $18.6 MILLION TO KINDERGARTEN DEVELOPMENT GRANTS
• INCREASES CHAPTER 70 MINIMUM AID TO $25 PER STUDENT
• LEVEL-FUNDS MOST OTHER MUNICIPAL AND SCHOOL ACCOUNTS

Earlier this afternoon, the House Ways and Means Committee reported out a lean $38 billion fiscal 2016 state budget plan to increase overall state expenditures by 2.8 percent, as the state seeks to close a projected $1.8 billion structural budget deficit by restraining spending and eliminating 4,500 state jobs through an early retirement program. The House Ways and Means budget is $100 million smaller than the budget filed by Governor Baker in March.  The full House will debate the fiscal 2016 state budget during the week of April 27.

H. 3400, the House Ways and Means budget, provides strong progress on many important local aid priorities, including the full $34 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 $8.3 million to the Special Education Circuit Breaker, restoring $18.6 million to Kindergarten Development Grants, restoring $5 million to Regional School Transportation, and increasing Chapter 70 minimum aid from $20 to $25 per student.

PLEASE CLICK HERE TO SEE THE UNRESTRICTED GENERAL GOVERNMENT AID AND CHAPTER 70 AID AMOUNTS FOR YOUR COMMUNITY AS PROPOSED IN THE HOUSE WAYS AND MEANS COMMITTEE BUDGET

$34 MILLION INCREASE IN UNRESTRICTED MUNICIPAL AID
In a major victory for cities and towns, H. 3400 (the HW&M fiscal 2016 budget plan) would provide $979.8 million for UGGA, a $34 million increase over current funding – the same increase proposed by Governor Baker.  The $34 million would increase UGGA funding by 3.6 percent, which is 75 percent of the projected 4.8 percent increase 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 3.6 percent.

$8.3 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 $261.7 million, an $8.3 million increase above fiscal 2015, 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.

RESTORES $5 MILLION TO REGIONAL SCHOOL TRANSPORTATION
Last November, former Gov. Patrick used his 9C budget powers to eliminate the $18.7 million increase regional school transportation reimbursements that the Legislature originally enacted for fiscal 2015, reducing the final amount to $51.5 million.  The Governor proposed level funding at $51.5 million.  Recognizing the importance of this funding, the House Ways and Means Committee budget would restore $5 million to bring regional transportation reimbursements up to $56.5 million.  The MMA will work to continue building on this welcome increase.

RESTORES $18.6 MILLION TO KINDERGARTEN DEVELOPMENT GRANTS
The House Ways & Means budget would restore $18.6 million to the Kindergarten Development Grant program.  The Governor’s budget would have eliminated all funding, and House leaders want to level fund the current appropriation, at least for the next year.  This is an important account, because eliminating the $18.6 million would have jeopardized expanded kindergarten programs all throughout the state.

CHAPTER 70 MINIMUM AID WOULD INCREASE TO $25 PER STUDENT
The House budget committee is proposing a $108.2 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $25 per student.  This is $2.9 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 (245 operating districts in cities, towns and regions would only receive minimum aid), the MMA will work to build on this progress and will continue to advocate for higher funding.

McKINNEY-VENTO REIMBURSEMENTS WOULD INCREASE BY $1 MILLION
The House Ways and Means Committee budget would add $1 million to increase reimbursements for the transportation of homeless students to $8.4 million, the same funding level proposed in the Governor’s budget.  While the account remains below the full reimbursement called for under the state’s unfunded mandate law, it would be the first increase since fiscal 2013.

CHARTER SCHOOL REIMBURSEMENTS 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 2013 and 2014, but is underfunding reimbursements by approximately $34 million this year.  Both the Governor and the House Ways and Means budgets would level-fund charter school reimbursements at $76.8 million, which would guarantee another major shortfall in fiscal 2016, and result in cutbacks for the majority of students who remain in the traditional school setting.  Increasing this account will be a top priority during the budget debate.

PAYMENTS-IN-LIEU-OF-TAXES (PILOT), LIBRARY AID ACCOUNTS, METCO, 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 $18.5 million, and restore funding for METCO to $19.1 million.  All three of these accounts are funded the same in both the Governor and House Ways and Means budgets.  However, the HW&M budget would reduce Shannon Anti-Gang Grants to $5 million, a $2 million reduction.

CPA – Lexington’s experience

Interesting insights below into the Community Preservation Act, by Lexington’s Capital Expenditure Committee, which in hindsight rued its opposition to the CPA, given how much state money they got.

The CPA is all about getting the state matching money – because that state money in turn lowers our property taxes (if we eventually spend for open space, historic preservation, and affordable housing).

Medfield has adoption of the CPA as a question at its annual town meeting on 4/27/15, at 7:30 PM in the gym at MHS.


 

LEXINGTON CAPITAL EXPENDITURES COMMITTEE
STATEMENT TO TOWN MEETING
April 6, 2011
(edited for length)
When Lexington’s Town Meeting considered adopting the Community
Preservation Act in 2005, the Capital Expenditures Committee unanimously
recommended its rejection, primarily citing concerns about “crowding” out
future Proposition 2½ override votes. With 20:20 hindsight, the present
committee, 4 of the 5 members still being the same as 6 years ago, will be the
first to admit that we were wrong. I will have more to say on that topic in a
minute.
State Match
Clearly, the most important aspect of the CPA is the State “match”. Since
ratification, Lexington has received $6.4M in matching funds and we expect
approximately $859,000 more in the upcoming fiscal year. That yields an
effective State-match rate of about 50% over those five years. While the trend
in matching percentage has been downward since the 100% match in our first
year of adoption, the most likely scenario is that the matching funds remain
strong enough to justify continued CPA project funding in Lexington. And
because we are at the maximum surcharge level Lexington receives a higher
matching percentage rate than towns with a lower surcharge level.
Proposition 2½ Debt Exclusions
Some of the CPA projects we have funded in Lexington over the past several
years would, by policy, have been performed using Proposition 2½ Debt
Exclusions if the CPA had not been adopted here. This is because not only is
it difficult to find that much money in the “regular” tax levy, but it also
implies widespread consensus by virtue of passing a voter referendum. So by
obviating the need for debt exclusions for eligible big-ticket items like land
purchases, the CPA has provided a more flexible funding environment.
This flexibility and streamlining can be considered a positive in that it has
created a debt exclusion-free environment for CPA-eligible projects.
Regarding Lexington’s recent CPA land purchases, it is arguable that the
CPA aspect of their funding has saved the taxpayers money. Clearly there is
the obvious state match to consider. But there is also the aggressive bonding
taken by the Town with the recommendation and approval of the finance
committees. Of the three major CPA land purchases, one was cash and two
were financed with 3 year front-loaded bonds. Had any of these been funded
using debt exclusions, the bonding would almost certainly have been for a
much longer term and therefore would have cost the taxpayers tens of
thousands of dollars more in debt service.
Project Diversity
The CPA has allowed Lexington to advance several projects which would not
normally be on the Town’s agenda. For example, the Lexington Historical
Society has received funds for restoring the Hancock-Clarke House and
Munroe Tavern. And funding has been approved for several affordable
housing projects which normally would have been difficult to fund with tax
levy monies. These projects count favorably against our Chapter 40(b)
threshold.
Impact of a Reduction
CPA-related projects in Lexington would look quite different should a
reduction of our 3% surcharge prevail. A cursory scan of the projects that
have been funded over the last five years indicates that most of those would
not have been funded if the only revenues available had been from a 1%-
surcharge. Moving forward with a reduced surcharge, it is clear that large
land and affordable housing purchases will be far less likely to occur, and if
they do, they will likely require the use of long-term bonding, a policy which
contradicts our past tendency to thoughtfully use short-term bonding for CPA
monies when debt funding has been necessary. Further, a reduced surcharge
will eliminate significant contributions towards Town projects creating the
possibility of deferred or eliminated projects, and/or future debt exclusions.
Crowding
As I mentioned before, prior to Lexington’s adoption of the CPA in 2006, this
Committee had been concerned that once the taxpayers had experienced the
additional demand of the CPA surcharge, it would “crowd out” their support
of Proposition 2½ operating overrides and debt exclusions. We were wrong in
this assumption. So far, that crowding effect has not materialized. In fact,
while there was split support for the four overrides in June 2006 before any
CPA surcharge appeared on tax bills, in Jun 2007, after the CPA surcharge
appeared on the bills, there was support for both a $4 million override for the
schools and a $27 million debt exclusion for the public works facility. The
current 3% rate creates a relatively minor impact on the average tax bill and
won’t present a crowding factor. Additionally on the topic of crowding, it can
be reasonably argued that the CPA funding at the current percentage has
actually reduced the number of overrides and debt exclusions, and will
continue to do so.
Project Costs and Matching Funds
Based on the most recent State-matching funds rate, the taxpayer presently
pays only 78 cents on the dollar of every CPA project. That number is 67
cents on the dollar if you take the overall matching rate over the past five
years. Undeniably, there are some projects that have been advanced by the
CPC over the past five years that were not unanimously supported by the
CPC and Town Meeting. That’s nothing new. Very rarely does Town
Meeting show unanimous support for any given year’s capital docket.
Nevertheless, the CPA has funded many beneficial and positive projects in
Lexington. If they weren’t positive, a majority of Town Meeting members
wouldn’t have approved them. And the fact stands that Lexington has already
received $6.4 million of CPA matching funds; make that $7.3 million with
this year’s match.
Capital Advocacy
It is this Committee’s job to advise Town Meeting on matters related to
capital spending in Lexington. The Capital Expenditures Committee believes
that the CPA at the current 3% surcharge level and State match have been
beneficial to Lexington’s capital agenda and we unanimously oppose
reduction of the percent 3% surcharge.

House adds to our budget #s

This from John Nunnari today – House added $12K to our #s from Governor’s initial budget –


House budget was released today.

House gave a slight boost in Chapter 70 funding over the governor ($12K).

john

John Nunnari, Assoc AIA
Executive Director, AIA MA