Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
The Honorable Aaron M. Michlewitz
The Honorable Michael J. Rodrigues
The Honorable Kip A. Diggs
The Honorable Joanne M. Comerford
The Honorable Todd M. Smola
The Honorable Patrick M. O’Connor
State House, Boston
Delivered electronically
Dear Chair Michlewitz, Chair Rodrigues, and Distinguished Members of the FY2027 Budget Conference Committee:
On behalf of all cities and towns across the Commonwealth, I write today to express our deep appreciation for the proposed fiscal 2027 budget investments that will provide much-needed support to cities, towns, and school districts. Both the House (H. 5501) and Senate (S. 3100) proposals are emblematic of your commitment to the well-being of the Commonwealth through critical local investments.
We appreciate your thoughtful consideration of the many factors impacting our local and state economies, as well as the pressures felt in the households of residents in all corners of Massachusetts. These are the same conditions that our municipal officials are navigating every day. Throughout the budget process, both chambers have highlighted the needs of cities and towns, highlighting the need for additional state support and recognizing the numerous fiscal pressures that are forcing municipal governments to reduce services and staff, delay projects, and consider local overrides to simply maintain level services. Thank you for understanding the needs in our communities and using the fiscal 2027 budget to advance investments that lift up our cities and towns.
The House and Senate proposals include various investments to key local aid accounts. Chief among these proposals are historic investments in education aid including setting per-pupil minimum new education aid to $160 and fully funding the sixth and final year of the Student Opportunity Act implementation schedule. These investments will make a difference in districts and communities across the Commonwealth.
While there are a number of areas where the House and Senate agree on funding levels for municipal and school aid accounts, there are multiple areas where the two branches will have to resolve differences. In this letter, we offer a municipal government perspective on the proposals before you. We respectfully ask that you maximize investments in essential municipal and school aid programs, and support provisions that will help our local governments ensure critical services are provided to residents in all corners of the Commonwealth.
Appropriations
Unrestricted General Government Aid (UGGA)
The Senate has proposed a $53 million increase to the Unrestricted General Government Aid account (1233-2350), totaling $1.39 billion, a 4% increase above fiscal 2026 levels. The UGGA program is a pillar of our state-local partnership. The $53 million increase reflects a strategic and thoughtful approach to meaningfully boost this critical account when municipalities need it most. We are deeply grateful for this proposal and urge the support of all conferees for what this funding would represent for the 351 cities and towns in Massachusetts. Once again, funding for this account is a top priority.
Chapter 70 School Aid
We greatly appreciate the House and Senate proposals to fund education aid (7061-0008; 1596-2438; 1596-2450) according to the sixth and final year of the Student Opportunity Act funding schedule. We further appreciate the proposal to increase per-pupil minimum aid to $160. We applaud both chambers for recognizing the need for additional support for our public schools and the difficulty that our districts are facing to contend with rising costs. Thank you for responding to this need with a proposal to significantly boost minimum aid.
Special Education Circuit Breaker
We support the appropriation for Special Education Circuit Breaker (7061-0012) in H. 5501 and S. 3100. These proposals, paired with the Special Education Circuit Breaker Reserve funding recently reported in the surplus surtax supplemental budget appropriation, would provide significant support to districts seeking reimbursements for high cost special education services. The SPED circuit breaker program provides support to districts to help meet the needs of high-cost special education services. Costs for such services can be extraordinary and unpredictable as districts work to meet the unique, complex, and multifaceted needs of special education students.
Charter School Mitigation Payments
We support full funding for charter school mitigation payments (7061-9010). We are grateful for the Legislature’s ongoing commitment to funding the state’s statutory obligation for charter school mitigation payments as outlined in the Student Opportunity Act. We further urge additional reforms to the charter school funding formula in the future to better offset the burden that charter school costs impose on cities, towns, and public school districts.
Rural School Aid
We support the appropriation of $16 million in S. 3100 for Rural School Aid (7061-9813). This appropriation, in combination with additional funding included in the recent Fair Share supplemental budget, will provide a helpful increase to this account. These grants help schools facing declining enrollment in rural areas to identify efficiencies in school services or opportunities for regional collaboration. We respectfully ask the Conference Committee to support the $16 million included in S. 3100.
Regional School Transportation & Out-of-District Vocational Transportation
Both H. 5501 & S. 3100 provide various funding sources (7035-0006; 1596-2451; 7035-0007) for critical reimbursements for school transportation costs. For regional schools, transportation costs continue to add additional burden to yearly budgets. Regional school transportation reimbursements are key to ensure that students are safely and efficiently transported to school and that limited local and regional resources are directed to the classroom. Additionally, this need also extends to critical funding for out-of-district vocational school students.
We urge you to continue to maximize funding for costs associated with transporting schoolchildren in the Fiscal 2027 budget as well as through the recent Fair Share supplemental budget. Recent investments in student transportation accounts are deeply appreciated and fully funding these accounts remains a priority for cities, towns, and school districts.
McKinney-Vento Homeless Student Transportation
We support the proposed appropriation of $35.2 million for the transportation of homeless students under the federal McKinney-Vento Act found in both the House and Senate budgets (7035-0008). This funding provides much-needed relief to districts working to ensure stability and continuity of education for students experiencing homelessness.
Payments in Lieu of Taxes (PILOT)
We support full funding of the Commonwealth’s obligations and commitments to the program for payments in lieu of taxes for state-owned land (1233-2400). We support the appropriation of $55.4 million included in both the House and Senate bills for the PILOT program for fiscal 2027. This amount represents an increase of $851,000 above the current fiscal year.
We appreciate the progress that has been made on PILOT in recent years and ask that you continue to support this important funding for municipalities. We look forward to the work and recommendations of the Governor’s Commission on Payments in Lieu of Taxes (PILOT) for State-Owned Land to inform future investments in this program.
English Learners Reserve
We support the $10 million included in H. 5501 (1599-0008) to offset reductions in state education aid due to unexpected reductions in English language learners. We respectfully ask the Conference Committee to support this important funding included in H. 5501.
Outside Sections
Foundation Budget Review Commission
We support Section 49 of S. 3100, which would reconvene the Foundation Budget Review Commission to examine the current K-12 public education funding formula. After several years of the implementation of the Student Opportunity Act, alongside population and economic shifts, the time has come to assess what education funding policies are working for the Commonwealth and which need adjustment. The commission would assess new ways to address rising costs and the allocation of school resources statewide. We respectfully ask the Conference Committee to support this important provision.
Disaster Relief and Resiliency Fund
We support Section 66 of H. 5501, which would direct $14 million of any consolidated net surplus for fiscal 2027 to the Disaster Relief and Resiliency Fund. This fund is a much-needed safeguard for cities and towns to support recovery from disasters, which remains timely with an evolving landscape involving federal disaster relief support. We respectfully ask the Conference Committee to support this important provision.
Summary
Investments provided through both H. 5501 and S. 3100 are clear demonstrations of your commitment to a flourishing Commonwealth, even as we face historic fiscal pressures and uncertainties.
As detailed in our recent reports, in all regions of Massachusetts, local governments are facing the “perfect storm” of conditions threatening foundational public services for residents. Working within the restrictions of Proposition 2½, cities and towns are in dire need of a strong state and local commitment. Local leaders appreciate that the Legislature has kept municipal government at the forefront throughout fiscal 2027 budget deliberations and have prioritized key local aid accounts in H. 5501 and S. 3100.
We greatly appreciate the proposed education aid investments and urge your consideration of our priorities in this letter, chief among them being a significant boost to UGGA. As the sole source of discretionary state aid to municipalities, this funding is essential because it allows cities and towns to invest these dollars where they are needed most.
If you have any questions, please do not hesitate to have your office contact me or MMA Senior Legislative Analyst Adrienne Núñez at any time.
Thank you very much for your overall leadership and enduring partnership with cities and towns.
Sincerely,
Adam Chapdelaine
MMA Executive Director and CEO