Home 
About MMA MMA News MMA members endorse revenue-sharing plan
The MMA membership on Jan. 13 unanimously endorsed a new revenue-sharing framework defining local aid as a fixed percentage of state tax collections.
Members adopted a resolution proposing the new permanent revenue-sharing structure during the association’s Annual Business Meeting in Boston.
• Text of resolution
The plan calls for an amount equal to 40 percent of state growth taxes – personal income, sales and use, and corporate excise – to be dedicated to the main municipal and school aid accounts, with an amount equal to one-quarter of this amount (10 percent of growth taxes) directed to a new municipal aid account. This new account would guarantee a higher level of discretionary aid than is currently provided by the existing two-part program of Lottery distributions and Additional Assistance.
The balance of the 40 percent growth tax set aside would cover other municipal aid accounts and the main school accounts, including Chapter 70 and the sales tax amount dedicated to the school building assistance program.
Incoming MMA President David Kielson, chair of the MMA’s Fiscal Policy Committee, said the “new and permanent framework” would be phased in over five or six years, beginning in fiscal 2008.
“This is a really ambitious goal,” he said.
The 40 percent benchmark has also been proposed by the Massachusetts Taxpayers Foundation and is a key component of the MMA-Northeastern University report “Revenue Sharing and the Future of the Massachusetts Economy,” released at last year’s Annual Meeting.
Forty percent was also the basis of local aid in the 1980s, when 40 percent of growth taxes was set aside in the Local Aid Fund for local government purposes and new aid each year was pegged at 40 percent of the increase in the growth taxes.
In a speech to members at the beginning of the business meeting (see page 3), Gov. Deval Patrick said he supports the intent of the resolution – “a fixed and predictable portion of total state revenues” dedicated to local aid – though he’s not sure yet “what the right number is.”
At last year’s Annual Meeting, the MMA membership unanimously passed a resolution that outlined in general terms a renewed and permanent relationship between state and local government. This year’s Resolution on Renewing and Revitalizing a Strong State-Local Fiscal Partnership adds specific provisions to the 2006 outline and describes a local aid program for the new governor and Legislature for the next fiscal year.
The proposed resolution was presented by the MMA’s Fiscal Policy Committee and Revenue Sharing Task Force. The MMA Board of Directors voted unanimously last November to recommend the resolution.
Resolutions presented at the Annual Business Meeting are drafted by the MMA’s policy committees to support the MMA’s lobbying priorities. The proposals are intended to clearly communicate the MMA’s basic principles and policy directives to the appropriate state and federal officials.
About MMA MMA News MMA members endorse revenue-sharing plan
MMA members endorse revenue-sharing plan
The MMA membership on Jan. 13 unanimously endorsed a new revenue-sharing framework defining local aid as a fixed percentage of state tax collections.
Members adopted a resolution proposing the new permanent revenue-sharing structure during the association’s Annual Business Meeting in Boston.
• Text of resolution
The plan calls for an amount equal to 40 percent of state growth taxes – personal income, sales and use, and corporate excise – to be dedicated to the main municipal and school aid accounts, with an amount equal to one-quarter of this amount (10 percent of growth taxes) directed to a new municipal aid account. This new account would guarantee a higher level of discretionary aid than is currently provided by the existing two-part program of Lottery distributions and Additional Assistance.
The balance of the 40 percent growth tax set aside would cover other municipal aid accounts and the main school accounts, including Chapter 70 and the sales tax amount dedicated to the school building assistance program.
Incoming MMA President David Kielson, chair of the MMA’s Fiscal Policy Committee, said the “new and permanent framework” would be phased in over five or six years, beginning in fiscal 2008.
“This is a really ambitious goal,” he said.
The 40 percent benchmark has also been proposed by the Massachusetts Taxpayers Foundation and is a key component of the MMA-Northeastern University report “Revenue Sharing and the Future of the Massachusetts Economy,” released at last year’s Annual Meeting.
Forty percent was also the basis of local aid in the 1980s, when 40 percent of growth taxes was set aside in the Local Aid Fund for local government purposes and new aid each year was pegged at 40 percent of the increase in the growth taxes.
In a speech to members at the beginning of the business meeting (see page 3), Gov. Deval Patrick said he supports the intent of the resolution – “a fixed and predictable portion of total state revenues” dedicated to local aid – though he’s not sure yet “what the right number is.”
At last year’s Annual Meeting, the MMA membership unanimously passed a resolution that outlined in general terms a renewed and permanent relationship between state and local government. This year’s Resolution on Renewing and Revitalizing a Strong State-Local Fiscal Partnership adds specific provisions to the 2006 outline and describes a local aid program for the new governor and Legislature for the next fiscal year.
The proposed resolution was presented by the MMA’s Fiscal Policy Committee and Revenue Sharing Task Force. The MMA Board of Directors voted unanimously last November to recommend the resolution.
Resolutions presented at the Annual Business Meeting are drafted by the MMA’s policy committees to support the MMA’s lobbying priorities. The proposals are intended to clearly communicate the MMA’s basic principles and policy directives to the appropriate state and federal officials.
Written by MMA Publications/Web Director John Ouellette
