The House Ways and Means Committee today released a $38 billion fiscal 2016 state budget plan that would increase overall state expenditures by just 2.8 percent, as the state seeks to close a projected $1.8 billion structural budget deficit by restraining spending and trimming the state payroll. The House’s budget plan is $100 million smaller than the budget plan filed by Gov. Charlie Baker last month.
 
The House Ways and Means proposal would, however, make progress on a number of local aid priorities, including a $34 million increase in Unrestricted General Government Aid, which matches the governor’s proposal.
 
The House budget committee is proposing a $108.2 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $25 per student.
 
Download Section 3: UGGA and Chapter 70 amounts listed by community and school district (151K PDF)
 
Importantly, the House bill (H. 3400) would add $8.3 million to the Special Education Circuit Breaker and restore $5 million to regional school transportation. It would also provide $18.6 million for kindergarten development grants.
 
The 3.6 percent increase for UGGA, to $979.8 million, would be the largest increase in discretionary municipal aid in nearly a decade. The rate of increase is 75 percent of the projected 4.8 percent rate of increase in state tax collections next year. Every city and town would see its UGGA funding increase by 3.6 percent.
 
The House bill would support full funding for the Special Education Circuit Breaker program at $261.7 million, an $8.3 million increase above fiscal 2015. Every city, town and school district relies on this program to fund state-mandated services.
 
H. 3400 would bring regional transportation reimbursements up to $56.5 million. Last November, former Gov. Deval Patrick used his Section 9C emergency budget cutting powers to eliminate the $18.7 million increase in regional school transportation reimbursements that the Legislature originally enacted for fiscal 2015, reducing the final amount to $51.5 million. Gov. Baker proposed level-funding the program for fiscal 2016. The MMA will work to continue making progress on this account.
 
While the governor’s budget would have eliminated funding for the Kindergarten Development Grant program, House leaders want to level-fund the program at $18.6 million, at least for the next year. Eliminating funding would have jeopardized expanded kindergarten programs throughout the state.
 
The House budget committee’s Chapter 70 proposal is $2.9 million more than in the governor’s budget, which called for minimum aid of $20 per student. The House budget would continue to implement the target share provisions enacted in 2007. Because most cities and towns only receive minimum aid (245 operating districts in cities, towns and regions would only receive minimum aid), the MMA will continue to advocate for higher funding.
 
H. 3400 would add $1 million to increase reimbursements for the transportation of homeless students under the McKinney-Vento program to $8.4 million, the same funding level proposed by the governor. While the account remains below the full reimbursement called for under the state’s unfunded mandate law, it would see the first increase since fiscal 2013.
 
Both the governor’s and House Ways and Means budgets would level-fund charter school reimbursements at $76.8 million, which would guarantee another major shortfall in fiscal 2016 and result in cutbacks for the majority of students who remain in the traditional school setting. Under state law, cities and towns that host or send students to charter schools are entitled to be reimbursed for a portion of their lost Chapter 70 aid. The state fully funded the reimbursement program in fiscal 2013 and 2014, but is underfunding reimbursements by approximately $34 million this year. Increasing this account will be a top municipal priority during the budget debate.
 
Like the governor’s budget bill, the House budget committee’s proposal would level-fund payments-in-lieu-of-taxes (PILOT) at $26.77 million, continue to fund library grant programs at $18.5 million, and restore funding for METCO to $19.1 million.
 
H. 3400 would reduce Shannon Anti-Gang Grants by $2 million, to $5 million.
 
House budget amendments are due Friday, and House members are scheduled to begin debate on the budget bill on April 27.
 
Link to House budget website
 

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