Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Her Excellency Maura Healey
Governor of the Commonwealth
State House, Boston
Delivered electronically
Dear Governor Healey,
On behalf of all cities and towns across the Commonwealth, I write today to express our support for the Legislature’s proposed fiscal year 2027 investment plan, H. 5555. As state leaders continue to contend with dynamic economic conditions impacted by federal policy actions, the Legislature has offered a plan that is cautious of headwinds while maintaining critically necessary investments in state programs and local aid.
As you know, cities and towns across the Commonwealth are facing numerous compounding fiscal pressures. Tightly capped property taxes, paired with inflation, limited growth, and stretched household budgets have created a “perfect storm” of fiscal challenges. This has led to difficult budget decisions in our communities, including reductions of services and staff. Our communities rely on state investments to balance the forces limiting revenue generation at the local level in order to maintain the essential services our residents depend on. From foundational municipal and school services, to safe streets and neighborhoods, to maintaining vital infrastructure and more, these municipal priorities are critical to ensuring the success and wellbeing of the Commonwealth.
We are grateful for your strong partnership with Massachusetts’ 351 cities and towns. As you review the conference report enacted by the Legislature, we respectfully urge your support and ask that you prioritize our partnership through your support for the proposed investments in key municipal accounts:
Appropriations
Unrestricted General Government Aid (UGGA) | 1233-2350
H. 5555 proposes $1.363 billion for Unrestricted General Government Aid in fiscal 2027, a $40 million increase over fiscal 2026. Three-quarters of the increase ($30 million) would be distributed to municipalities based on their proportional share of the statewide population, with no municipality receiving more than 4% of the $30 million, while the remaining $10 million of the increase would be distributed as it has been in past years. The appropriation represents a compromise between the House and Senate proposals and begins to consider alternative distributions of this priority funding. UGGA is discretionary local aid that helps cities and towns maintain local programming and deliver vital services that residents rely on every day. The proposed increase is essential for all municipalities as they navigate budget shortfalls and overall economic uncertainties. We respectfully ask you to support the UGGA funding level included in H. 5555 while looking to future opportunities to significantly expand on this critical support and funding for our communities.
Chapter 70 Education Aid | 7061-0008
The Legislature’s proposal would fund Chapter 70 aid at $7.66 billion, completing the sixth and final year of the Student Opportunity Act implementation schedule. We applaud you and the Legislature for your commitment to funding the SOA. The Legislature has also proposed increases to minimum per-pupil aid to $160 for fiscal 2027. We respectfully ask you to support these critical investments in education aid that benefit students and school districts across the Commonwealth.
Special Education Circuit Breaker | 7061-0012
The budget bill proposes $654.6 million for the Special Education Circuit Breaker program. This amount would be paired with an additional $152 million in aid included in a fiscal 2026 “Fair Share” supplemental budget law. 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. These reimbursements help to ensure that students in need of specialized educational services are afforded the best education possible. We urge you to support the proposed investments in this critical program.
Regional and Out-of-District Vocational School Transportation | 7035-0006; 1596-2451
The Legislature’s budget includes a total of $115.6 million for two accounts to support school transportation costs: $57.2 million is proposed for regional school transportation alone, while $58.4 million is proposed to support both regional school reimbursements as well as out-of-district vocational school transportation (historically funded separately). The costs of transporting students continues to rise and these accounts provide much-needed resources. We respectfully urge you to support this critical funding for school districts.
McKinney-Vento Homeless Student Transportation | 7035-0008
H. 5555 proposes $35.2 million for reimbursements for the transportation of homeless students under McKinney-Vento. According to cost projections from your team earlier in the budget development process, this funding level would represent 58.2% of anticipated claims for fiscal 2027. We urge you to support this proposed funding while pursuing supplemental funding in the near future to ensure homeless students maintain stable engagement in their community schools.
Rural School Aid | 7061-9813
We strongly support the continuance of Rural School Aid, which help qualifying schools facing the challenge of declining enrollment identify ways to regionalize services and find efficiencies. The $16 million included in H. 5555, will dramatically boost this program at a time when rural districts need it the most. We respectfully ask you to support the proposed Rural School Aid funding that makes a difference in rural communities and continue the Commonwealth’s progress towards regional equity.
Universal School Meals | 1596-2422
The Legislature’s budget includes $180 million for the Universal School Meals program, which allows all Massachusetts students to eat for free at school, regardless of household income. We continue to strongly support this initiative that is a proven tool to combat hunger and ensures students are set up for success in the classroom.
PILOT Funding | 1233-2400
We strongly support the proposed increase to Payments-in-Lieu-of-Taxes (PILOT) for state-owned land included in H. 5555, bringing the line item to $55.4 million. We urge you to support the funding level in H. 5555 and look forward to the forthcoming recommendations from your Commission on PILOT for State Owned Land.
English Language Learners’ Reserve | 1599-0008
We support the $4 million included in H. 5555 to offset reductions in state education aid due to unexpected reductions in English language learners. This is a one-time investment that will provide relief to stressed districts. We respectfully request that you support this appropriation.
Outside Sections
In addition to appropriations, H. 5555 contains several policy provisions of interest to cities and towns. We urge you to support the following initiatives that benefit the wellbeing of the Commonwealth’s municipalities and residents.
Reconvening of Foundation Budget Review Commission | Section 64 & 111
H. 5555 recommends reconvening a Foundation Budget Review Commission to examine the current K-12 public education funding formula and develop a pathway for the future. MMA members are grateful for the recent investments in public education across the Commonwealth. However, cities, towns, and districts have identified existing and growing hardships. Our members are enthusiastic to review the current funding configuration in hopes of offering recommendations for constructive reforms. We strongly support this initiative and urge you to support this proposal, as well.
SPED Transportation Contract Database and Marketplace Study | Sections 67 & 110
H. 5555 proposes multiple actions that would encourage transparency and best practices regarding special education transportation costs and contracts. Section 67 would create a contract database, allowing districts access to all special education transportation contracts as well as guidelines for districts on best practices for school transportation procurement.
Section 110 would direct DESE, in consultation with the operational services division, the department of public utilities and the registry of motor vehicles to study the special education transportation marketplace to identify areas to improve the vendor marketplace and ensure open and free competition. Such a study would provide critical information to state, local, and district leaders to better understand the challenges associated with special education transportation which can generate significant costs to districts.
We urge you to support these initiatives that encourage best practices and build our knowledge of the challenges associated with the marketplace.
Summary
All across the Commonwealth cities and towns are facing compounding fiscal challenges. In order to maintain foundational local government services, communities rely on a strong state-local partnership. The proposed investments included in H. 5555 offer needed support to cities and towns at a time when they need it most. We urge you to support the many investments in H. 5555 that support Massachusetts communities.
Thank you for your leadership as we all contend with the uncertainty that has accompanied changes to economic conditions and federal policy. We are deeply grateful for your partnership with the MMA and all 351 cities and towns in the Commonwealth.
If you have any questions or need additional information regarding municipal priorities, please do not hesitate to have your office contact me or MMA Senior Legislative Analyst Adrienne Núñez at any time. Many thanks for your commitment to the prosperity of all 351 cities and towns.
Sincerely,
Adam Chapdelaine
MMA Executive Director and CEO
cc:
The Honorable Kimberley Driscoll, Lieutenant Governor of the Commonwealth
Secretary Matthew Gorzkowicz , Executive Office of Administration and Finance
Senior Deputy Commissioner Sean Cronin, Division of Local Services