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Local Aid and Finance Gov. files updated FY10 budget framework
Gov. Deval Patrick today filed an updated version of his fiscal 2010 budget recommendations, a step required by state rules because the consensus revenue number for next year has been lowered by approximately $1.5 billion since the governor filed his budget in January.
It is unclear what impact, if any, the administration’s new budget framework will have on the Legislature’s budget process, as each branch has already approved a budget bill, and the matter is now before a House-Senate conference committee to develop a joint plan. Technically, the only documents before the conference committee are the House and Senate budget bills.
The governor’s updated budget does not include any revenue from a sales tax increase approved by both branches in their budget bills (from 5 percent to 6.25 percent), as the governor is threatening to veto the sales tax hike unless ethics reform, transportation and pension bills reach his desk before the budget.
According to a press release from the Governor’s office, the newer budget plan cuts $794 million in spending from his original House 1 plan. The budget apparently includes $700 million more in federal stimulus funds.
The Legislature is expected to increase the sales tax and use approximately $500 million of the new revenue in the final version of the budget. Legislators may explore the use of more federal funds, but that would mean fewer federal dollars would be available to prop up the fiscal 2011 budget.
In terms of local accounts, the governor’s revised plan would lower the municipal aid amount by another $80 million. House 1 called for a cut of between $220 million and $375 million, depending on the passage of a statewide 1 percent increase in the meals and hotel taxes. (No tax increase would have resulted in a $375 million cut; passage of the taxes would result in a $220 million cut.) The new plan apparently would change the range to between $300 million and $445 million – levels that would be devastating to communities.
The governor’s revised plan also recommends the elimination of funding for the police incentive pay program (Quinn Bill). There is no information at this time about the governor’s latest plans for school transportation reimbursements, payments-in-lieu-of-taxes (PILOT), and many other aid accounts.
The governor’s revised plan does maintain Chapter 70 funding, as proposed in the original House 1, and banks on $168 million in federal stimulus funds, as he announced earlier this year.
• Link to governor’s press release on his revised budget plan
• Link to governor’s revised budget Web site
• Link to local aid amounts in governor’s revised budget
• MMA letter to budget conference committee outlining local priorities for state budget
Local Aid and Finance Gov. files updated FY10 budget framework
Gov. files updated FY10 budget framework
Gov. Deval Patrick today filed an updated version of his fiscal 2010 budget recommendations, a step required by state rules because the consensus revenue number for next year has been lowered by approximately $1.5 billion since the governor filed his budget in January.
It is unclear what impact, if any, the administration’s new budget framework will have on the Legislature’s budget process, as each branch has already approved a budget bill, and the matter is now before a House-Senate conference committee to develop a joint plan. Technically, the only documents before the conference committee are the House and Senate budget bills.
The governor’s updated budget does not include any revenue from a sales tax increase approved by both branches in their budget bills (from 5 percent to 6.25 percent), as the governor is threatening to veto the sales tax hike unless ethics reform, transportation and pension bills reach his desk before the budget.
According to a press release from the Governor’s office, the newer budget plan cuts $794 million in spending from his original House 1 plan. The budget apparently includes $700 million more in federal stimulus funds.
The Legislature is expected to increase the sales tax and use approximately $500 million of the new revenue in the final version of the budget. Legislators may explore the use of more federal funds, but that would mean fewer federal dollars would be available to prop up the fiscal 2011 budget.
In terms of local accounts, the governor’s revised plan would lower the municipal aid amount by another $80 million. House 1 called for a cut of between $220 million and $375 million, depending on the passage of a statewide 1 percent increase in the meals and hotel taxes. (No tax increase would have resulted in a $375 million cut; passage of the taxes would result in a $220 million cut.) The new plan apparently would change the range to between $300 million and $445 million – levels that would be devastating to communities.
The governor’s revised plan also recommends the elimination of funding for the police incentive pay program (Quinn Bill). There is no information at this time about the governor’s latest plans for school transportation reimbursements, payments-in-lieu-of-taxes (PILOT), and many other aid accounts.
The governor’s revised plan does maintain Chapter 70 funding, as proposed in the original House 1, and banks on $168 million in federal stimulus funds, as he announced earlier this year.
• Link to governor’s press release on his revised budget plan
• Link to governor’s revised budget Web site
• Link to local aid amounts in governor’s revised budget
• MMA letter to budget conference committee outlining local priorities for state budget
Written by MMA Executive Director Geoff Beckwith
