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Local Aid and Finance Gov. files fiscal 2009 state budget bill
In the face of growing worries about the economy, Gov. Deval Patrick today filed a $28 billion state budget recommendation for fiscal 2009 that calls on the Legislature to use reserves and expand state revenues in order to keep moving forward on important state priorities.
These priorities are mainly improving public education and expanding access to health care, as well as targeted new spending for education, public safety and other programs.
In his budget message, the governor said that he and his budget-writing staff faced a daunting task of closing a revenue-spending gap of more than $1 billion, which required a balanced approach to addressing the state’s highest priorities while maintaining fiscal responsibility.
“Even in challenging fiscal times,” he said, “we cannot afford to balance the state budget on the backs of municipalities and those who pay property taxes.”
• Link to the governor’s budget Web site
• Link to Division of Local ServicesÂ? Web site for fiscal 2009 local aid estimates based on the governor’Â?s budget proposal
• Link to Department of Education Web site for Chapter 70 aid calculations, minimum contributions and net school spending requirements based on the governor’Â?s budget proposal
Total spending for local government programs would grow by more than 5 percent next year under the governor’s spending plan.
The budget would increase Chapter 70 school aid by $223 million, to $3.95 billion, an increase of about 6 percent, to fully fund the 1993 school finance reform law and implement changes made in 2006 to improve the fairness of the allocation formula.
Additional Assistance would be level-funded at $380 million.
The governor’s proposal would level-fund the Cherry Sheet Lottery account at $935 million, but only if the Legislature approves casino legislation and licenses can be sold in time to generate revenues before the end of the year. Without the casino revenue, the Lottery account would be funded at $811 million. The governor’s plan uses $124 million in projected casino licensing fees to cover the difference.
The gap between actual Lottery revenues and Cherry Sheet estimates first arose at the end of fiscal 2007 (about $120 million) and has carried forward this year through to fiscal 2009.
The MMA has announced its opposition to making level-funding of the Lottery account contingent on the Legislature enacting a casino law and selling licenses. The Legislature has not yet held a public hearing on the governor’s proposal to allow three destination-type casinos, and legislative leaders have warned against using casino revenues in the budget.
In addition to the main municipal and school aid accounts, the budget recommendation also includes new targeted spending for some of the governor’s education and public safety initiatives. For education, the governor would add $51 million to increase funding for universal pre-kindergarten ($15 million), kindergarten expansion ($8 million), and extended learning time ($13 million) grants, and for assistance to underperforming school districts and students who fare poorly on the MCAS tests.
The governor would increase funding for the METCO program, for reimbursements through the special education “circuit breaker” program, and for several other priority school-based programs.
Targeted expansion of public safety priorities in the budget include doubling the municipal police grant program to $8 million in order to add 50 additional police officers to local police departments in high-crime cities and towns. The budget would also add $4 million to the Shannon Grant program, bringing the total to $15 million, to help combat gang-related crime and violence.
The governor’s budget recommendation was filed at a time of slowing economic growth and tax collections. The “consensus” tax number of $21 billion, agreed to by the chief budget writers in the governor’s office and in the House and Senate, is based on a forecast of 3.8 percent growth, down markedly from the 6-8 percent growth over the past several years.
New tax revenues would total only $760 million, with $145 million set aside by law for the Massachusetts Bay Transportation Authority, the Massachusetts School Building Authority, and the state’s retirement system obligations.
The tax projections in the governor’s budget would be supplemented with $124 million in casino licensing fee revenues, $297 million from the governor’s plan to close corporate tax loopholes, and $369 million from state reserves. In addition, the budget counts on $150 million from improved enforcement of existing tax laws.
The governor’s budget bill (House 2) is now being reviewed by the House and Senate budget committees. While no schedule for public hearings and budget debate has been announced yet, over the past several years the House Committee on Ways and Means has released a budget bill in early April and finished budget debate by the end of the month. The Senate has generally wrapped up budget debate by the end of May.
Last year, the House and Senate agreed on a fiscal 2008 Local Aid Resolution on April 4, committing to a level of funding for the three largest Cherry Sheet accounts.
Local Aid and Finance Gov. files fiscal 2009 state budget bill
Gov. files fiscal 2009 state budget bill
In the face of growing worries about the economy, Gov. Deval Patrick today filed a $28 billion state budget recommendation for fiscal 2009 that calls on the Legislature to use reserves and expand state revenues in order to keep moving forward on important state priorities.
These priorities are mainly improving public education and expanding access to health care, as well as targeted new spending for education, public safety and other programs.
In his budget message, the governor said that he and his budget-writing staff faced a daunting task of closing a revenue-spending gap of more than $1 billion, which required a balanced approach to addressing the state’s highest priorities while maintaining fiscal responsibility.
“Even in challenging fiscal times,” he said, “we cannot afford to balance the state budget on the backs of municipalities and those who pay property taxes.”
• Link to the governor’s budget Web site
• Link to Division of Local ServicesÂ? Web site for fiscal 2009 local aid estimates based on the governor’Â?s budget proposal
• Link to Department of Education Web site for Chapter 70 aid calculations, minimum contributions and net school spending requirements based on the governor’Â?s budget proposal
Total spending for local government programs would grow by more than 5 percent next year under the governor’s spending plan.
The budget would increase Chapter 70 school aid by $223 million, to $3.95 billion, an increase of about 6 percent, to fully fund the 1993 school finance reform law and implement changes made in 2006 to improve the fairness of the allocation formula.
Additional Assistance would be level-funded at $380 million.
The governor’s proposal would level-fund the Cherry Sheet Lottery account at $935 million, but only if the Legislature approves casino legislation and licenses can be sold in time to generate revenues before the end of the year. Without the casino revenue, the Lottery account would be funded at $811 million. The governor’s plan uses $124 million in projected casino licensing fees to cover the difference.
The gap between actual Lottery revenues and Cherry Sheet estimates first arose at the end of fiscal 2007 (about $120 million) and has carried forward this year through to fiscal 2009.
The MMA has announced its opposition to making level-funding of the Lottery account contingent on the Legislature enacting a casino law and selling licenses. The Legislature has not yet held a public hearing on the governor’s proposal to allow three destination-type casinos, and legislative leaders have warned against using casino revenues in the budget.
In addition to the main municipal and school aid accounts, the budget recommendation also includes new targeted spending for some of the governor’s education and public safety initiatives. For education, the governor would add $51 million to increase funding for universal pre-kindergarten ($15 million), kindergarten expansion ($8 million), and extended learning time ($13 million) grants, and for assistance to underperforming school districts and students who fare poorly on the MCAS tests.
The governor would increase funding for the METCO program, for reimbursements through the special education “circuit breaker” program, and for several other priority school-based programs.
Targeted expansion of public safety priorities in the budget include doubling the municipal police grant program to $8 million in order to add 50 additional police officers to local police departments in high-crime cities and towns. The budget would also add $4 million to the Shannon Grant program, bringing the total to $15 million, to help combat gang-related crime and violence.
The governor’s budget recommendation was filed at a time of slowing economic growth and tax collections. The “consensus” tax number of $21 billion, agreed to by the chief budget writers in the governor’s office and in the House and Senate, is based on a forecast of 3.8 percent growth, down markedly from the 6-8 percent growth over the past several years.
New tax revenues would total only $760 million, with $145 million set aside by law for the Massachusetts Bay Transportation Authority, the Massachusetts School Building Authority, and the state’s retirement system obligations.
The tax projections in the governor’s budget would be supplemented with $124 million in casino licensing fee revenues, $297 million from the governor’s plan to close corporate tax loopholes, and $369 million from state reserves. In addition, the budget counts on $150 million from improved enforcement of existing tax laws.
The governor’s budget bill (House 2) is now being reviewed by the House and Senate budget committees. While no schedule for public hearings and budget debate has been announced yet, over the past several years the House Committee on Ways and Means has released a budget bill in early April and finished budget debate by the end of the month. The Senate has generally wrapped up budget debate by the end of May.
Last year, the House and Senate agreed on a fiscal 2008 Local Aid Resolution on April 4, committing to a level of funding for the three largest Cherry Sheet accounts.
Written by MMA Legislative Director John Robertson
