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Economic & Community Development CPA funding gap unresolved
The 2011 formal legislative session ended without action to secure full funding for the Community Preservation Act Trust Fund.
In 2008, for the first time, CPA communities received an average match of 74 percent, rather than the dollar-for-dollar match seen in previous years. The match fell dramatically last year, to below 30 percent for many communities, due in part to the popularity of the program as well as the decline in real estate activity, which provides funding for the match program.
In October, the match dropped again to just a 26.6 percent, in the first round of the trust fund distributions. Communities that adopted the CPA with a full 3 percent local property tax surcharge will receive additional revenue in rounds two and three.
The MMA has testified in support of a bill to address the dramatic drop in state matching funds. A bill (H. 765) filed by Sen. Cynthia Stone Creem of Newton and Rep. Stephen Kulik of Worthington would stabilize the CPA Trust Fund and guarantee that CPA communities receive a match of at least 75 percent each year.
The bill has 90 co-sponsors in the House and 26 in the Senate and was reported out favorably by the Joint Committee on Community Development and Small Business. It is currently before the House Committee on Ways and Means.
A guaranteed minimum match would give local governments a reliable source of funds for specific needs. Especially in a tough economy, the CPA helps municipalities fund open space, affordable housing, historic preservation and recreation projects without diverting funds from priorities such as public safety, education, maintenance and public works.
To date, 147 of the state’s 351 municipalities have adopted the CPA. Communities may tailor CPA projects based on local priorities.
Economic & Community Development CPA funding gap unresolved
CPA funding gap unresolved
The 2011 formal legislative session ended without action to secure full funding for the Community Preservation Act Trust Fund.
In 2008, for the first time, CPA communities received an average match of 74 percent, rather than the dollar-for-dollar match seen in previous years. The match fell dramatically last year, to below 30 percent for many communities, due in part to the popularity of the program as well as the decline in real estate activity, which provides funding for the match program.
In October, the match dropped again to just a 26.6 percent, in the first round of the trust fund distributions. Communities that adopted the CPA with a full 3 percent local property tax surcharge will receive additional revenue in rounds two and three.
The MMA has testified in support of a bill to address the dramatic drop in state matching funds. A bill (H. 765) filed by Sen. Cynthia Stone Creem of Newton and Rep. Stephen Kulik of Worthington would stabilize the CPA Trust Fund and guarantee that CPA communities receive a match of at least 75 percent each year.
The bill has 90 co-sponsors in the House and 26 in the Senate and was reported out favorably by the Joint Committee on Community Development and Small Business. It is currently before the House Committee on Ways and Means.
A guaranteed minimum match would give local governments a reliable source of funds for specific needs. Especially in a tough economy, the CPA helps municipalities fund open space, affordable housing, historic preservation and recreation projects without diverting funds from priorities such as public safety, education, maintenance and public works.
To date, 147 of the state’s 351 municipalities have adopted the CPA. Communities may tailor CPA projects based on local priorities.
Written by MMA Senior Legislative Analyst Tom Philbin
