Early action needed on top issues

From The Beacon, December 2010, Vol. XXXVI, #11

The long gap between elections and inaugurations is a modern-day American phenomenon, left over from the age when distance was traversed by horseback and our growing nation was larger than any other, requiring sizeable notice and arduous journeys for large assemblies to gather. Most countries now convene their new governing bodies and swear in new office holders just days or weeks after voters make their choices, but here we wait two months or more. Tradition is one thing, and orderly transition of government is another, but this long delay does not always serve us well.

Here at home, for instance, we must wait until the first week in January for the state Legislature to reconvene, even though there are many serious challenges facing Massachusetts and many issues that cry out for immediate attention.

With new and returning legislators taking office in January, the filing and processing of more than 10,000 bills, the naming of committees, and the scheduling of hearings will consume most of January, which means most issues won’t begin to move until late winter or early spring, unless special attention and priority is assigned to them.

The chief concern, of course, is the state’s structural budget gap, which is estimated to be well over $2 billion for fiscal 2012, making it very likely that the state will once again be considering deep cuts across the board. Municipalities have absorbed more than their share of these cuts in recent years, with a third of unrestricted general government aid disappearing. Further cuts in local aid and education funding would translate directly into cuts in vital local services and increased reliance on the property tax, both of which are bad news for the Massachusetts economy.

Certainly, the MMA and local officials will be doing everything possible to protect local aid from further cuts. As municipal leaders know all too well, communities complete their budgets well before the Legislature and governor finalize a state spending plan in late June, so an early dialogue with representatives and senators will be essential to make sure that local aid is as high as it can be, and to make sure that decisions are made and communicated regarding aid levels by March at the latest to allow for proper planning at the local level.

In addition to local aid, there are three key priorities that the MMA Board of Directors has identified for urgent priority and early action by the Legislature and governor. These issues cannot wait until summertime, but must be fast-tracked in order to protect local taxpayers and preserve vital services.

First, the state needs to pass municipal health insurance reform to give local leaders control over the design of employee health plans. This reform would merely give municipal officials the same power that state officials use to adjust co-pays and deductibles outside of collective bargaining. The current system gives municipal unions a unique veto power over important cost-saving changes and is no longer affordable or fair for local taxpayers. The MMA estimates that plan design reform would save $100 million a year and allow communities to protect services, save taxpayers money, and avoid thousands of layoffs of teachers, public safety workers and other key employees.

Due to health plan enrollments and plan administration needs, this reform must pass by February at the latest in order to be implemented in time to produce savings during fiscal 2012, which means that legislators must give this issue special priority and pledge to act immediately during the new session.

The second crucial issue is reauthorization of the Chapter 90 program to fund the repair and maintenance of local roads and bridges. The state funds this program by issuing bonds and notifying each community of its Chapter 90 allocation by April 1 of each year. In fiscal 2011, cities and towns are receiving $155 million for local roads, and in fiscal 2010 communities received $150 million. The April 1 notification date is essential – and was put into state law at the MMA’s urging – because communities need time to plan and make maximum use of the funds during the full construction season. In the past, late notification led to unnecessary and costly delays in projects.

Based on research and extensive surveys of municipalities, the MMA estimates that the actual need for Chapter 90 is at least $300 million a year, as cities and towns maintain 90 percent of the roadways in Massachusetts. The cost of maintaining this essential infrastructure far outstrips the current authorization. The MMA is calling for passage of a three-year, $300-million-a-year Chapter 90 bond authorization in time to meet the statutory April 1 deadline to notify communities of their annual allocation, which means that the Chapter 90 program must be fast-tracked for swift consideration and action during the winter.

Third, there is no funding challenge confronting our school systems that is more volatile and unpredictable than special education costs. Since the beginning of fiscal 2009, the state has cut more than $100 million (more than 40 percent) from the special education circuit-breaker program. The full impact of this painful cut has not been felt because cities and towns have been receiving millions of dollars in special federal IDEA funding that was part of the federal stimulus plan. That money is gone, however, and without an early and renewed commitment to the circuit-breaker, local school districts will be forced to impose serious cutbacks.

The state should renew funding for the program and expand it to include reimbursement for expensive transportation needs. As local budgets cannot wait until passage of the state’s general appropriations act, it will be vitally important for legislators in each branch to commit early to adequate funding for special education, a state-mandated program that drains local budgets every year.

Even though the new Legislature and governor won’t be sworn into their new terms until January, the table can and should be set for early action on each of these top priorities: protecting local aid, passing municipal health insurance reform, enacting a Chapter 90 bond bill that will allow communities to maintain local roads and bridges, and restoring and expanding the special education circuit-breaker to provide a lifeline to every community and school district in the state.

Swift action on each of these key issues will preserve essential services, stabilize municipal budgets, invest in our economy, and benefit every taxpayer.