In face of federal pressures, protecting local funding is critical

From the Beacon, Summer 2025

In the June issue, I wrote about the economic uncertainty that the Commonwealth is facing and the importance of maintaining a strong state and local partnership in the face of these challenges. Fast forward to today, and we have already seen some of that uncertainty becoming reality, with the Legislature approving a smaller budget than either branch had approved individually, and then the governor signing an even smaller budget into law after vetoes were factored in.

Within this context, the fiscal 2026 budget highlights the House and Senate’s commitment to partnering with cities and towns, even as we face unfolding implications of federal policy actions. It is a strategic spending plan that offers stability to municipalities while wisely incorporating an $800 million “cushion” between spending and revenue expectations. This is an example of responsible budgeting that properly accommodates potential uncertainty ahead, stemming from the so-called “One Big Beautiful Bill.”

We are deeply concerned, however, with provisions of a supplemental budget bill recently filed by the governor that would prematurely expand the governor’s Section 9C emergency budget-cutting authority to allow potential reductions of all funding provided in the recently enacted budget. Expanded authority to allow cuts in areas such as local aid is absolutely unnecessary at this stage, and we are strongly urging the Legislature to remove this section in its entirety.

We understand that governors may offer these types of proposals from time to time, but such a provision would directly undermine the Legislature’s focused efforts to maintain a sound financial vision for the Commonwealth. This is why we are asking the Legislature to once again reject such a preemptive proposal, and remove Section 10 from the fiscal 2026 supplemental budget bill.

As we know, cities and towns are critical partners in ensuring that the most fundamental of services are provided to residents. Municipalities rely on state support — and the stability of this support — to provide these essential services and programs. Preemptively expanding this 9C authority is unnecessary and would threaten to destabilize local budgets, which are already navigating their own direct implications of federal policy actions, all within the restrictions of Proposition 2½.

We’re all acutely aware of the budgetary distress that may lie ahead, but it’s critical to keep in mind that the cities and towns of the Commonwealth are the literal foundation of the quality of life enjoyed by the more than 7 million people who call Massachusetts home. This is a foundation that must be protected, even in challenging fiscal times, to ensure the livability of our communities both now and into the future.

The MMA will be the leading voice in this effort, and we look forward to working with the governor, the Legislature and all of you as we strive to protect local funding.