Budget season off to a good start

From The Beacon, February 2010, Vol. XXXVI, #2

Gov. Deval Patrick kicked off the official budget season on Beacon Hill with an impressive drive to close a projected budget gap of more than $3 billion and protect the major local aid accounts from further cuts. The governor’s announcement at the MMA’s Annual Meeting last month was greeted with relief and cheers from municipal leaders who have become understandably weary of the constant drumbeat of bad news that has sounded over the past two years.

The Patrick-Murray administration’s fiscal 2011 budget would guarantee level-funding for unrestricted general government aid and Chapter 70 education funds. The spending plan also protects regional school transportation and payments in lieu of taxes from further cuts.

As companions to the budget, the administration is pushing legislation to ensure that cities and towns are not required to make up the state’s share of the Police Career Incentive Pay Program, to extend pension funding schedules in order to prevent a huge spike in local appropriations due to the devaluation of invested assets, and to allow for a local-option municipal early retirement incentive plan as a tool to avoid laying off long-time employees.

In addition, the governor is pushing to freeze rates for special education residential programs, suspend maintenance of effort mandates to qualify for library funds, and enact other measures to provide flexibility and relief to cities and towns. These are all key priorities that the Legislature should embrace.

In his budget message to the Legislature and state residents, Gov. Patrick said “on top of protecting Chapter 70 funding, we are preserving current funding for unrestricted general government aid for cities and towns – a major short- and long-term economic investment in its own right and a lever to help reduce pressure on property taxes.” That’s right on target. He also hit the bulls-eye when he said, “We can’t have a strong Commonwealth without strong cities and towns.”

Municipalities are struggling mightily to deliver essential services and shield taxpayers from the worst of the recession. Local aid was cut by an all-time record amount of $724 million last year, and every city and town is experiencing extraordinary fiscal distress. The governor’s budget offers stability to communities and local taxpayers, and local leaders certainly appreciate the obvious priority that he has placed on local aid and local services.

But difficult and painful decisions will still confront every city and town in the days and months ahead. Further cuts to local aid would be devastating to core services and our economy. The only way Massachusetts can emerge from the recession in a position to compete and thrive is with a strong foundation that invites businesses and families to stay and invest. Public safety, education, infrastructure and quality-of-life services in neighborhoods are all essential to our recovery, and are all delivered by cities and towns.

Municipal leaders are now asking the Legislature to embrace local aid as the necessary priority it should be. It is imperative that our legislators take action to protect local aid from further cuts. The governor has offered a strong framework that shows how this is possible.

An early resolution by the Legislature that level-funds local aid would provide the stability and security that communities need to stop the fiscal freefall that has plunged cities and towns into crisis. Every taxpayer, business, family and citizen would benefit.

An early budget resolution to protect local aid is needed to guide us to a better place and brighter days.