Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
The Honorable Brian S. Dempsey, House Chairman
The Honorable Stephen M. Brewer, Senate Chairman
The Honorable Stephen Kulik, House Vice Chairman
The Honorable Jennifer L. Flanagan, Senate Vice Chairman
The Honorable Vinny deMacedo, Ranking House Member
The Honorable Michael R. Knapik, Ranking Senate Member
Joint Conference Committee on the Fiscal 2013 State Budget
State House, Boston
Dear Chairman Dempsey, Chairman Brewer, Vice Chairman Kulik, Vice Chairman Flanagan, Representative deMacedo, and Senator Knapik:
On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association is writing regarding the House and Senate fiscal 2013 state budget bills that are before you in conference committee. We want you to know that city and town officials in every corner of the state greatly appreciate the commitment made to local government in both budget bills during another very challenging year for government finances at all levels. It is clear that you have embraced cities and towns as key priorities, and recognize the importance of investing in communities as an essential strategy for our economic recovery. The MMA and our members are grateful for your leadership.
Municipal Aid
Both the House and Senate bills would restore the Cherry Sheet Unrestricted General Government Aid (UGGA) account to the fiscal 2011 level of funding. The House budget would match the fiscal 2011 level at $899 million while the Senate would appropriate $900 million. The MMA strongly supports this higher level of support for municipal government. It is the top state budget priority for cities and towns this year.
Unrestricted municipal aid has been cut deeply since the national recession hit Massachusetts hard in mid-2008, and this essential source of support for municipal services has fallen from $1.3 billion in the fiscal 2009 general appropriations act to $834 million last year, a decrease of $481 million, or 37 percent. Both the House and Senate UGGA appropriations for fiscal 2013 would be paid almost entirely by Lottery revenues, with a much smaller state tax contribution than was the case in fiscal 2008, when the non-Lottery contribution to municipal aid then totaled more than $650 million. The strong growth in Lottery revenues this year at an expected record level of more than $950 million certainly supports this higher municipal aid amount at $900 million.
In addition to the main municipal aid program, there are several other important general municipal aid and public safety grant programs that are funded in the budget.
We support the $26.3 million appropriation in both branches for the Cherry Sheet Payment-in-Lieu-of-Taxes (PILOT) for state-owned land program (1233-2400). This is an important account for those cities and towns that host state facilities that require local government services, particularly public safety services.
We support the $7 million Senate level of funding for the Gang Violence Prevention (Shannon) grant program (8100-0111).
We support the $500,000 appropriation in the Senate bill (1233-2401) for smart growth school cost reimbursements due to be paid under Chapter 40S to cities and towns that have adopted smart growth zoning districts under Chapter 40R.
School Aid
Chapter 70 School Aid
Both the House and Senate approved a substantial increase for the Chapter 70 school aid program (7061-0008) to ensure that every municipal and regional school district is able to reach the “foundation” level of school spending that forms the basis of the state’s landmark education finance reform law. Because only one-third of all districts would receive a share of this new foundation aid, as initially proposed by the Governor in H. 2, both branches also added funding to make sure that every district would receive an increase of at least $40 per student, a major step to benefit every community.
In analyzing both proposals, we support the Senate Chapter 70 appropriation of $4.17 billion and the allocation method for fiscal 2013 that would include in a limited way the “target aid” equity provision adopted in 2006 but held in abeyance during the fiscal crisis, and we urge you to include those funds in addition to the minimum per-student increase.
Special Education “Circuit Breaker”
We strongly support the $242 million Senate appropriation for the special education “circuit breaker” account (7061-0012) to fully fund the state’s statutory 75 percent share of certain special education costs over four-times the state average foundation budget per student level. This an important program that helps all school districts with the increasingly burdensome cost of complex and expensive special education services. Both the House and Senate budgets provide an increase above H. 2, which is appreciated by all local officials. By restoring full funding for the account, the Senate proposal achieves in one year the House’s long-term goal of fully funding this program, and thus we ask you to support the Senate’s appropriation amount.
McKinney-Vento Unfunded Mandate
We strongly support the House appropriation (7035-0005) to provide $11.3 million to cover the mandate imposed on cities and towns to transport certain students living in temporary housing. Earlier this year, State Auditor Suzanne Bump determined that state acceptance of the federal McKinney-Vento Act related to the education of homeless students was an unfunded state mandate under the state’s Local Mandate Law. The House budget amount would fully fund the expected cost of the program and relieve cities, towns and school districts of this costly mandate that diverts local resources away from other vital programs. We also support section 24 in the Senate budget bill that would require the Department of Elementary and Secondary Education (DESE) to certify district costs, although we would hope that DESE could prepare estimates for municipalities and districts upon enactment of the fiscal 2013 state budget and certify actual costs for reimbursement purposes by the December 1 date specified.
Student Transportation in Regional Schools
We support the appropriation of $45.5 million (7035-0006) in both the House and Senate budget bills that would reimburse regional school districts for a portion of the cost of transporting students. This is an important program for the state’s smaller and less-populated municipalities and school districts, where lengthy bus trips cannot be avoided. Regional districts and member cities and towns appreciate the increase in funding over the fiscal 2012 level.
Reimbursements for Losses Related to Charter Schools
We support the $71.5 million appropriation (7061-9010) in both the House and Senate budget bills to reimburse municipalities and school districts for a portion of school aid deductions used to pay tuition to charter schools. We remain concerned that this amount will not be sufficient to fully fund the state’s obligation under this program at a time of charter school expansion, and underscore that the estimated deduction of school aid from public schools to send tuition to charter schools is estimated at $366 million.
Law Changes
Community Preservation Act
City and town officials very much appreciate and strongly support the provisions approved by the House (sections 110-122) and Senate (sections 57-71, 155Q and 158) bills that would update and expand the very productive Community Preservation Act (CPA) program to give cites and towns more flexibility for raising and using local funds. Both bills would modestly expand the allowable use of CPA funds to include renovation and construction of certain recreational facilities not currently eligible for CPA funding. The bills would also allow cities and towns to adopt the CPA law with a 1 percent or more property tax surcharge and use other municipal revenues to qualify for the maximum state match of 3 percent.
The MMA and municipal leaders strongly support the framework for additional funding approved by the House of Representatives. The House approved a permanent method of providing additional funds for the state’s CPA match of local funds, based on the transfer of up to $25 million from year-end state surplus amounts, if any, beginning in fiscal 2013. In addition, the Senate approved a one-time $5 million transfer from the state’s General Fund to supplement the CPA at the end of fiscal 2012. We strongly recommend passage of the House framework, and support the Senate’s additional $5 million to build on the permanent mechanism.
Special Education Rate Freeze
We support sections in the House (108) and Senate (125) bills that would provide a limited cap on special education rates set by the state’s Operational Services Division (OSD). This modest restriction on growth in special education costs is very important to local school districts with limited ability to increase spending next year.
Chapter 40B Audits
We support section 155A in the Senate bill that would allow the Inspector General to enter into contracts with third parties to audit all Chapter 40B cost certifications. Following the IG’s report of widespread abuse in this program, a system of independent audits would help restore public confidence in this program, and ensure that all 40B projects follow the intent of the law.
Summary
On behalf of local leaders across Massachusetts, we thank you very much for your abiding interest in the fiscal health and stability of local government. The budgets embraced by the House and Senate reflect a true spirit of partnership and dedication to cities and towns and local taxpayers. We are confident that your final consensus budget will continue that partnership and build a strong foundation for progress.
If you or your staff have any questions or require any additional information, please do not hesitate to contact me or MMA Deputy Legislative Director John Robertson at (617) 426-7272 at any time.
Again, thank you for your service, leadership and support for local government.
Sincerely,
Geoffrey C. Beckwith
Executive Director, MMA