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Local Aid and Finance Legislature begins budget deliberations
With cities and towns and state government facing substantial structural budget gaps for next year, the Legislature has launched its fiscal 2009 budget deliberations, the next step in the budget process that began when Gov. Deval Patrick filed his $28 billion spending plan on Jan. 23.
In testimony delivered to members of the Legislature’s Ways and Means committees on Feb. 19, the MMA urged the highest possible investment in local aid and expressed support for the framework of the upcoming state budget bill outlined by House Speaker Salvatore DiMasi.
DiMasi announced on Feb. 12 that the House plan for fiscal 2009 would fully fund the $935 million Lottery aid account and the scheduled $223 million increase in Chapter 70 education aid, the overall levels recommended by Gov. Patrick. DiMasi added that the House budget would fund local aid programs without relying on separate legislation or revenue sources.
The MMA called on the House and Senate to reach pre-budget agreement on minimum amounts for the main local aid accounts and to pass local aid resolutions by March 1 to provide cities and towns with some measure of certainty as municipal budgets are being prepared for approval locally.
“Cities and towns are drafting their budgets now,” MMA Executive Director Geoff Beckwith said in written testimony, “and informing communities of the minimum levels of aid they will receive as early as possible provides greater certainty and facilitates informed decision-making for municipalities.
“Local officials very much appreciated the resolutions approved by the House and Senate last year, and encourage you and your colleagues to take this action again.”
The Feb. 19 hearing on local aid at Cambridge City Hall was one of 10 joint House and Senate Ways and Means Committee hearings held around the state on the governor’s budget recommendation.
Under the House leadership plan, Chapter 70 school aid would increase about 6 percent, to $3.95 billion. The municipal aid accounts (Additional Assistance and Lottery distributions) would be level-funded at $1.315 billion, with a projected $124 million Lottery shortfall covered by state revenues. The governor proposed linking the Lottery shortfall to legislative approval of casino legislation and the sale of casino licenses.
The MMA also supported increased funding for the Cherry Sheet Payment-in-Lieu-of-Taxes account, as proposed by the governor, and full funding for the other state-local programs, including the police incentive pay program and reimbursements for veterans benefits paid for locally. For school accounts, the MMA supports Patrick’s proposed increase for special education “circuit breaker” reimbursements.
The MMA is seeking “consensus” local aid resolutions by March 1 in the House and Senate as a commitment to minimum levels of funding for the three main school and municipal aid accounts. Last year the two branches approved fiscal 2008 resolutions in early April, just before budget debate in the House.
In recent years the House has approved a spending plan by late April, with a Senate budget approved by the end of May. A final budget bill is generally signed in late June or early July.
• MMA testimony to Ways and Means Committees on FY09 state budget
• 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
Local Aid and Finance Legislature begins budget deliberations
Legislature begins budget deliberations
With cities and towns and state government facing substantial structural budget gaps for next year, the Legislature has launched its fiscal 2009 budget deliberations, the next step in the budget process that began when Gov. Deval Patrick filed his $28 billion spending plan on Jan. 23.
In testimony delivered to members of the Legislature’s Ways and Means committees on Feb. 19, the MMA urged the highest possible investment in local aid and expressed support for the framework of the upcoming state budget bill outlined by House Speaker Salvatore DiMasi.
DiMasi announced on Feb. 12 that the House plan for fiscal 2009 would fully fund the $935 million Lottery aid account and the scheduled $223 million increase in Chapter 70 education aid, the overall levels recommended by Gov. Patrick. DiMasi added that the House budget would fund local aid programs without relying on separate legislation or revenue sources.
The MMA called on the House and Senate to reach pre-budget agreement on minimum amounts for the main local aid accounts and to pass local aid resolutions by March 1 to provide cities and towns with some measure of certainty as municipal budgets are being prepared for approval locally.
“Cities and towns are drafting their budgets now,” MMA Executive Director Geoff Beckwith said in written testimony, “and informing communities of the minimum levels of aid they will receive as early as possible provides greater certainty and facilitates informed decision-making for municipalities.
“Local officials very much appreciated the resolutions approved by the House and Senate last year, and encourage you and your colleagues to take this action again.”
The Feb. 19 hearing on local aid at Cambridge City Hall was one of 10 joint House and Senate Ways and Means Committee hearings held around the state on the governor’s budget recommendation.
Under the House leadership plan, Chapter 70 school aid would increase about 6 percent, to $3.95 billion. The municipal aid accounts (Additional Assistance and Lottery distributions) would be level-funded at $1.315 billion, with a projected $124 million Lottery shortfall covered by state revenues. The governor proposed linking the Lottery shortfall to legislative approval of casino legislation and the sale of casino licenses.
The MMA also supported increased funding for the Cherry Sheet Payment-in-Lieu-of-Taxes account, as proposed by the governor, and full funding for the other state-local programs, including the police incentive pay program and reimbursements for veterans benefits paid for locally. For school accounts, the MMA supports Patrick’s proposed increase for special education “circuit breaker” reimbursements.
The MMA is seeking “consensus” local aid resolutions by March 1 in the House and Senate as a commitment to minimum levels of funding for the three main school and municipal aid accounts. Last year the two branches approved fiscal 2008 resolutions in early April, just before budget debate in the House.
In recent years the House has approved a spending plan by late April, with a Senate budget approved by the end of May. A final budget bill is generally signed in late June or early July.
• MMA testimony to Ways and Means Committees on FY09 state budget
• 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
Written by MMA Legislative Director John Robertson
