Dear Legislator,

Earlier today, Governor Patrick imposed immediate mid-year cuts to close a $329 million state budget deficit that was disclosed two weeks ago. The Governor’s budget cuts would hit every city, town and local school district through an unexpected reduction of $40.3 million in promised funding that is used to deliver important municipal and school programs, and his additional proposal to slash $25.5 million from Unrestricted General Government Aid.

These cuts are bad news for cities and towns in every corner of the state, and will shift the state’s fiscal problems onto communities in the middle of the fiscal year. By slashing education funds that have been promised to reimburse communities for the cost of special education programs, charter schools and the transportation of students, these budget cuts will be harmful to schools, and the Governor’s proposal to cut unrestricted municipal aid would further hit local schools, because cities and towns use their local aid to fund local education budgets.

The state is facing a deficit that is mostly the result of administrative and budget management issues at the state level, yet the administration’s plan would solve the state’s problem by shifting much of the burden onto communities. Using his statutory authority to reduce executive branch spending, Governor Patrick has unilaterally cut $40.3 million in direct funding to cities, towns and school districts, and has asked the Legislature to cut an additional $25.5 million from Unrestricted General Government Aid (UGGA), the major municipal aid account that was previously cut by $400 million during the recent recession.

The governor’s mid-year budget cuts have reduced the following municipal and education accounts that go directly to cities, towns and local school districts:
• $18.7 million from Regional School Transportation (a 27% cut)
• $7.1 million from the Regionalization and Efficiencies Reserve (a 49% cut)
• $3.86 million from Special Education Reimbursements (a 1.5% cut)
• $2.88 million from the Chapter 70 “Pothole” account (an 85% cut)
• $2.24 million from Vocational School Transportation (a 100% cut)
• $1.3 million from Public School Military Mitigation Grants (a 100% cut)
• $1.2 million from Charter School Reimbursements (a 1.5% cut)
• $1.1 million from Sewer Rate Relief (a 100% cut)
• $1 million from Extended Learning Time Grants (a 6.8% cut)
• $359,000 from Kindergarten Expansion Grants (a 1.5% cut)
• $287,000 from METCO (a 1.5% cut)
• $283,000 from Library Aid (a 1.5% cut)

Every city, town and school district will be hit with one or more of the governor’s immediate budget cuts. In most cases, the cuts will feel much deeper because the reductions are being implemented five months into the fiscal year. For example, with only seven months left in fiscal year 2015, a 10% cut in an account will translate into a 17% cut from now to the end of the year, and a 50% cut in a program will translate into an 85% reduction in remaining reimbursements due to cities and towns.

In addition to the $40.3 million in mid-year cuts to municipal and school accounts in the state budget, the Governor has filed legislation calling for a $25.5 million reduction in Unrestricted General Government Aid, the main municipal aid account that goes to every city and town.

On behalf of cities and towns across the Commonwealth, we strongly oppose this proposed local aid cut because it would destabilize municipal and school budgets in the middle of the fiscal year, and force reductions in community services. Cities and towns incorporated all of their Unrestricted General Government Aid into their municipal and school budgets, relying on the full amount pledged in the Legislature’s local aid resolution earlier this year. As you know, unrestricted municipal aid is $400 million below original fiscal 2009 levels, and any additional cuts will be painful for cities and towns across the state. We respectfully and urgently ask you to reject the Governor’s proposed municipal aid cut.

This is a critical time for our economy, and for cities, towns and local taxpayers. Massachusetts is starting to find some new vigor in its economy. But the Massachusetts economy will only reach its full potential for statewide growth and job creation if all 351 cities and towns have the resources to adequately serve the residents and businesses of the Commonwealth. Imposing mid-year budget cuts on communities, as the governor has proposed, would undermine our state’s economic progress and stability.

Thank you very much for your support, dedication and commitment to the cities and towns of Massachusetts.

Sincerely,

Geoffrey C. Beckwith
Executive Director, MMA
 

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