The Legislature this afternoon enacted a fiscal 2012 state budget that funds the main local aid accounts at the same levels as the budgets adopted earlier by the House and Senate.

The final legislative budget funds Chapter 70 education aid at $3.99 billion and Unrestricted General Government Aid at $834 million.

The Chapter 70 number reflects an increase of $139 million in the state appropriation over fiscal 2011, although it is $82 million lower than the current year’s combined state and federal support. The UGGA account was cut by $65 million, about 7 percent.

The budget bill includes a significant municipal health insurance reform plan.

The fiscal 2012 state budget funds the special education circuit breaker account at $213 million, an $80 million increase over fiscal 2011.

The regional school transportation reimbursement account is funded at $43.5 million, a $3 million increase.

The payment-in-lieu-of-taxes (PILOT) account is funded at $27.3 million, a $1 million increase.

The budget eliminates funding for the Police Incentive Pay Program (Quinn Bill); approximately $60 million would have been required to fully fund the state’s 50 percent share. The state appropriated $5 million for this account in fiscal 2011.

The budget includes $5.5 million for anti-gang grants.

Reimbursements to cities and towns to offset a portion of school aid losses paid as tuition to charter schools are funded at $71.6 million. It’s not clear if this amount is sufficient to fund the state’s statutory reimbursement levels.

The budget includes a provision that could restore all or a portion of the $65 million cut to the Unrestricted General Government Aid account if the state ends fiscal 2011 with a surplus. With state tax collections running ahead of forecasts through the end of June, there is a chance that there may be some state funds available for a supplemental municipal aid distribution later this year, but that will not be known until September or October, when the state finally closes it books for the year. The provision requires that 50 percent of any “aggregate balance of appropriations,” not to exceed $65 million, be distributed to cities and towns not later than Oct. 31, 2011. The MMA will be closely monitoring the status of this provision.

The governor now has 10 days to review the budget bill before deciding to sign it or return it with amendments.

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