Massachusetts Municipal Association
Gov.’s budget level-funds municipal aid
Written by MMA Legislative Director John Robertson Friday, 03 February 2012 16:02
Gov. Deval Patrick on Jan. 25 filed a $33.9 billion spending plan for fiscal 2013 that reflects the challenge of recovering from the 2007-2009 recession even as state tax collections continue to grow.The governor’s budget recommendation would increase state spending by just over a billion dollars—about 3 percent over expected levels of spending in the current fiscal year. But almost all of the new spending would be directed toward fixed state obligations and to health care and safety net programs for which caseload and cost growth continues. Much of the rest of state and local programs in the budget would be level-funded or reduced.
State taxes are expected to increase by $940 million next year, to nearly $22 billion, based on a slowly expanding economy. Additional revenue would come from a modest tax initiative the governor has proposed that would remove the sales-tax exemption for soda and candy, and the tapping of $400 million from the state’s stabilization fund.
But growth in MassHealth, Commonwealth Care, non-health safety net programs, and legal obligations including debt service, pensions, collective bargaining and Chapter 70 school aid would outpace growth in revenues. Funding for MassHealth, including both the state and federal shares, is expected to grow by $771 million above original fiscal 2012 projections to $11.138 billion next year, even under aggressive cost-containment proposals outlined in the budget.
Funding amounts for the main municipal and school aid accounts were announced by Lt. Gov. Tim Murray at the opening session of the MMA Annual Meeting and Trade Show on Jan. 20.
Unrestricted General Government Aid (UGGA), the main municipal account, would be level-funded at $834 million. It would not include the $65 million supplemental amount distributed last October from the fiscal 2011 year-end surplus, as had been requested by the MMA. Lottery revenues are projected to grow next year by at least $20 million over the original fiscal 2012 estimate, but these new funds would not be used to increase municipal aid. The governor did include a section in his budget bill that would repeat the supplemental distribution again next year if the fiscal 2012 year-end surplus is large enough.
Funding for the state’s obligation to Chapter 70 school aid would increase by $145 million, to $4.136 billion, although only 114 of the state’s 327 operating school districts would share in that increase. The rest would be level-funded. For many municipal and regional school districts, aid amounts would be reduced through state-imposed deductions to pay tuition to charter schools. Cherry Sheet charter school tuition assessments are slated to rise by almost $25 million next year to $361 million.
The $200 million distribution of Chapter 90 local road funds announced by Lt. Governor Murray will to be included in special bond legislation filed separately from the governor’s budget recommendation. As was the case last year, the MMA has asked that the Legislature make this bill an early priority so that allocations for fiscal 2013 can be announced by April 1, in order to avoid delays in getting started on road projects.
For other municipal accounts, the governor proposed to level fund the payment-in-lieu-of-taxes program at $26.3 million and the two main library aid programs at $16 million. The budget recommendation would increase funding for the gang prevention grant program from $5.5 million to $8 million.
For school accounts, the governor’s budget would level fund student transportation reimbursements to regional school districts at $43.5 million, the special education “circuit breaker” account at $213.2 million, and payments to school districts losing school aid due to tuition paid to charter schools at $71.5 million.
The governor did include a number of law changes in his budget recommendation, including a provision supported by the MMA that would clarify that the state and local room-occupancy excise tax applies to Internet room resellers.
Following public hearings on the budget over the next couple of months, the House budget committee is expected to release a fiscal 2013 budget bill in mid-March for debate and approval before the end of the month. The Senate is expected to approve a budget by the end of May. The MMA is seeking a local aid resolution again this year on funding for the main municipal and school aid amounts. Last year the House and Senate reached agreement in mid-April.
Governor Releases Fiscal 2013 Budget and Local Aid Plan
Written by MMA Executive Director Geoff Beckwith Wednesday, 25 January 2012 15:48
GOVERNOR’S FISCAL 2013 BUDGET PLAN INCREASES STATE REVENUES AND SPENDING BUT MOST CITIES AND TOWNS LEVEL-FUNDEDAs outlined last week by Lt. Gov. Murray at the MMA’s Annual Meeting, Gov. Deval Patrick this morning submitted a fiscal 2013 state budget proposal (House 2) to the Legislature that looks much like the final budget for the current year, at least in its treatment of municipal aid accounts.
Other than a $146 million increase in Chapter 70 education aid, the major local aid accounts for fiscal 2013 were presented exactly as they appear in the fiscal 2012 budget act that was signed into law last July.
The $32.3 billion state budget recommendation filed by Gov. Patrick for fiscal 2013 counts on an improving state economy to generate higher tax collections as well proposals for new taxes but mainly to keep up with continued high levels of growth in state health care and safety net programs. Most cities, town and school districts face level-funding next year under the Governor’s plan.
Link to the Governor’s budget website:
http://www.mass.gov/bb/h1/fy13h1/index.html
The main municipal aid account on the Cherry Sheet, Unrestricted General Government Aid (UGGA), would be level-funded at $834 million, the original Cherry Sheet amount for fiscal 2012. This amount does not include the supplemental $65 million from the year-end fiscal 2011 surplus that was distributed last October. The Governor’s budget bill does include language (in outside section 17) that would distribute as early as next October up to $65 million in any year-end fiscal 2012 surplus.
The MMA has been calling on the Governor and state leaders to include the $65 million in the base local aid amount for fiscal 2013. The governor’s fiscal 2013 budget contains $1.2 billion in revenue growth and proposed new taxes, but spends none of it on municipal aid accounts. Further, state Lottery revenues are projected to grow by at least $20 million, but those funds are not allocated to the vital UGGA account, a major disappointment to the MMA.
Link to the Division of Local Services Cherry Sheets for Fiscal 2013:
http://www.mass.gov/dor/local-officials/municipal-data-and-financial-management/cherry-sheets/
Link to the Section 3 local aid numbers:
http://www.mass.gov/bb/h1/fy13h1/os_13/h32.htm
Chapter 70 school aid would be funded at $4.136 billion, an increase of $146 million to ensure that all school districts can maintain at least a “foundation” level of school spending. Largely due to declining enrollment, only 114 cities, towns and school districts would receive any new aid. Two-thirds of cities, towns and school districts [213] would receive the same amount of school aid as in fiscal 2012. The Chapter 70 formula would be administered for fiscal 2013 the same as last year, except that some cities and towns with local contributions above the target amount would see the above-target amount reduced less than expected. Potentially, this could result in smaller increases for some districts.
Link to the DESE’s website explaining the Governor’s fiscal 2013 Chapter 70 proposal, including specific numbers for each district:
http://finance1.doe.mass.edu/chapter70/chapter_13p.html
For municipal Cherry Sheet accounts, the Governor proposed to level fund the Payment-in-Lieu-of-taxes program at $26.3 million and the two main library aid programs at $16 million. The budget recommendation would increase funding for the gang prevention grant program from $5.5 million to $8.0 million.
For school accounts, the Governor’s budget would level fund student transportation reimbursements to regional school districts at $43.5 million, the special education “circuit breaker” account at $213.2 million and payments to school districts losing school aid due to tuition paid to charter schools at $71.5 million.
Because the number of charter schools is increasing this year, level-funding the charter school reimbursement account would clearly shortchange the formula, resulting in lower payments to communities than called for in the law passed just two years ago, in January 2010. Because of normal cost increases for transporting students and providing special education services, those two accounts would also represent an effective reduction in the percentage of costs reimbursed by the state, and state funding would continue to be far below the statutory aid level called for in state law.
Gov. Patrick also announced that he will file a transportation bond bill later this month that will include $200 million for the Chapter 90 local road and bridge program. This would match the disbursement for the current year and is $45 million more than two years ago. However, at the MMA’s Annual Meeting on Saturday, January 21, the MMA members endorsed a $300 million target for Chapter 90, because the current distribution is insufficient to meet the actual need in cities and towns.
The Governor did include a number of law changes in his budget recommendation including a provision supported by the MMA that would clarify that the state and local room occupancy excise applies to Internet room re-sellers. This would allow communities to collect the tax on the actual rate collected by merchants.
The next stop for the fiscal 2013 budget is the House Ways and Means Committee, which typically releases its version of the budget in mid-April.
Hosts sought for visiting public administrators from Pakistan
Written by MMA Administration/Finance Director Paul Bockelman Monday, 02 January 2012 00:00
The MMA is seeking communities to host 15 government officials from Pakistan from May 7 to 31.The visitors are participants in the U.S.-Pakistan Professional Partnership Program for Public Administration, funded by a two-year grant from the U.S. Department of State and administered by the MMA and the Institute for Training and Development. Another group of Pakistanis will be visiting in the fall.
Pakistani participants will be placed (in pairs, for the most part) in one four-week placement or two two-week placements, depending on the host community’s preference.
During the professional attachments, participants will reside in local hotels and spend each day with a town or city department or at a relevant event. Hosts will be asked to place the participants in a variety of municipal offices so they can gain an understanding of how professional services are coordinated and delivered.
In addition to building their professional capacities, the goal is to have the Pakistani government professionals build professional and personal relationships with their American counterparts.
In preparation for the professional attachments, the MMA and the ITD, a nonprofit based in Amherst (www.itd-amherst.org), will provide host communities with detailed suggestions. Support will be offered throughout the placements, and a hosting stipend will be awarded to offset expenses of the community and the local coordinator assigned to the Pakistani guests.
The first week of the program will feature an orientation to U.S. public administration, including lectures from practitioners and academics and site visits to local organizations and government offices. The last week will begin with individual and group reflection on the professional attachments and preparation of action-plan projects that the participants are expected to implement on their return home.
Lastly, the participants will travel to Washington, D.C., for more site visits and a debriefing at the Department of State.
The Pakistani participants were recruited by the Fulbright Commission in Pakistan. The U.S. Embassy in Islamabad will vet the participants, including thorough background checks, and will assist them in obtaining U.S. visas.
The project’s objectives are to assure that:
• The Pakistanis gain knowledge of the U.S. public administration system and approaches.
• Pakistani and U.S. public administrators discuss a number of strategies for countering corruption and minimizing bureaucratic entanglements.
• Pakistani participants develop professional and personal relationships with U.S. counterparts that may last beyond the exchange programs.
• Pakistani participants develop and carry out plans to introduce new projects or methods in their home communities.
All expenses for the Pakistani participants are covered by the grant, including travel, accommodations, meals and materials.
The project is funded by the Bureau for Educational and Cultural Affairs of the Department of State and is supported by the U.S. Embassy in Islamabad.
Local officials who are interested in participating in this program should contact Paul Bockelman at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
There will also be information at the MMA’s Annual Meeting & Trade Show on Jan. 20 and 21.
Logan, Fitzpatrick elected MMA leaders
Written by MMA Associate Editor Mitch Evich Friday, 03 February 2012 16:12
Waltham City Councillor Robert G. Logan is the new president of the MMA, and Needham Town Manager Kate Fitzpatrick is the new vice president.The MMA Board of Directors installed Logan and Fitzpatrick as officers for 2012 following the association’s Annual Business Meeting in Boston on Jan. 21.
Logan, who succeeds Natick Selectman Joshua Ostroff as president, was first elected to the Waltham City Council in 1989. A former City Council president, Logan currently chairs the council’s License and Franchises Committee. He is also the chair of the Waltham Ambulance Service Review Committee.
Logan cited a number of challenges the MMA faces this year, including the possibility that gridlock in Congress will prevent the disbursement of federal funds for road and bridge projects.
The Patrick administration’s proposed fiscal 2013 budget, announced at Annual Meeting on Jan. 20, calls for $200 million in Chapter 90 funding, the same amount as last year and $45 million more than two years ago. Local officials are hoping for as much as $300 million in federal transportation-related assistance.
“I think that everyone is aware that public infrastructure is in need of more investment,” Logan said. “At the same time, it has the added benefit of having a stimulus effect.”
Logan also cited the need for aid to help cities and towns meet federal mandates related to water and sewer systems.
Other goals for 2012 include promoting the regionalization of services such as emergency dispatch. Logan also pointed to the problem of “loopholes” that deprive municipalities of revenue. For example, communities that have adopted the local-option lodging tax often lose out on the revenue when visitors book their rooms online.
Fitzpatrick, the chief municipal officer in Needham for the past decade, served as the town’s assistant town administrator and personnel director from 1990 until 2001. In 2005, following a change in Needham’s form of government, Fitzpatrick’s title was changed from “town administrator” to “town manager.”
In the years since, Fitzpatrick has initiated full funding of Needham’s post-retirement benefits liability, has coordinated a master planning process for facilities, and has overseen the development of the town’s first comprehensive budget document.
MMA honors 9 Legislators of Year
Written by MMA Publications/Web Director John Ouellette Friday, 03 February 2012 15:57
The MMA is honoring nine members of the General Court with its Legislator of the Year award, largely due to their strong support of the Municipal Health Insurance Reform Act, which was signed into law last July.
The first to receive the award was House Speaker Robert DeLeo, who accepted the honor during the opening session of the MMA’s Annual Meeting & Trade Show on Jan. 20 before a crowd of more than 700 local officials from across the state.
“I am so grateful for this honor and I’m even more grateful for what this award represents,” said DeLeo, who began his political career as a Town Meeting member and then a selectman in his hometown of Winthrop. “To me, it demonstrates that our municipal leaders understand that we on Beacon Hill are doing everything in our power to help cities and towns – measures such as municipal health insurance reform, which will save these communities money, preserve jobs, and create much opportunity for growth. The House will continue to look to the MMA as a partner in all that we do.”
During the award ceremony, Natick Selectman Josh Ostroff, who served as president of the MMA during 2011, called the speaker’s leadership on municipal health insurance “truly remarkable.”
It was the third time the MMA had honored DeLeo as a Legislator of the Year.
The following six legislators received their awards during the second day of the Annual Meeting, on Jan. 21:
• House Ways and Means Chair Brian Dempsey
• House Ways and Means Vice Chair Stephen Kulik
• Senate Ways and Means Vice Chair Steven Baddour
• House Minority Leader Bradley Jones
• Joint Committee on Public Service House Chair John Scibak
• Joint Committee on Public Service Senate Chair Katherine Clark
Senate President Therese Murray and Senate Ways and Means Chair Stephen Brewer, also named Legislators of the Year, were unable to attend Annual Meeting and will receive their awards this month.
“Over the last several years, Massachusetts cities and towns have struggled with the burgeoning costs of health insurance, growing an average of 15 percent per year,” said MMA Executive Director Geoff Beckwith. “These honored legislators made municipal health insurance reform the centerpiece of legislative action. Without the leadership of our Legislators of the Year, the Municipal Health Insurance Reform Act of 2011 would not have become law. This reform act will save local taxpayers at least $100 million a year, will preserve essential services and protect the jobs of police officers, firefighters, teachers and other key municipal workers all across the state.”
The Legislators of the Year are also being recognized for their work on the fiscal 2012 state budget, which restored $65 million in local aid; for the passage of $200 million for the Chapter 90 local road and bridge program, and the enactment of strong pension reform legislation, which will reduce local pension costs by $2 billion over the next 30 years.
“The MMA, on behalf of local officials across the state, is honoring these lawmakers for their leadership, contributions and commitment to providing fiscal stability to municipalities, and for championing innovative programs to address challenges facing local government,” Beckwith said.
Speaker Robert A. DeLeo
Speaker DeLeo is no stranger to the MMA’s Legislator of the Year Award. Of the hundreds and hundreds of lawmakers who have served in office during the past 30 years, he is one of only two members of the House to win the award three times during their career – perhaps this is because of his love for local government as a former selectman from Winthrop, perhaps this is because of his dedication to the highest standards of public service, or perhaps this is because he always focuses on results that make a difference. The MMA is deeply grateful for his leadership, his dedication, and his determination to do his best for all of us.
Senate President Therese Murray
President Murray has received the MMA’s Legislator of the Year Award three times, one of only two members of the Senate to win the award three times during their careers – reflecting her commitment to serving the communities in her district, and her attention to local needs in every piece of legislation that crosses her desk. The MMA deeply appreciates her dedication and leadership, and her commitment to including every voice in the process, no matter how challenging the issue.
Representative Brian S. Dempsey
Rep. Dempsey is the Chair of the House Ways and Means Committee. He is a former councillor in Haverhill, and it is clear that local government is still in his bones, even though he has moved on to become one of the most influential legislators on Beacon Hill. The MMA last honored Rep. Dempsey as a Legislator of the Year for 2002 for his outstanding record as Chair of the Public Service Committee, and his steadfast support for local aid. His door has always been open to the MMA and cities and towns, no matter what the issue is. He is recognized as one of the most effective legislators in the state, caring about doing his best, for all the best reasons.
Senator Stephen M. Brewer
Sen. Brewer is the Chair of the Senate Ways and Means Committee. On the floor of the Senate, in the halls of the State House, and in the corridors of power, Senator Brewer always speaks out and advocates for cities and towns. He is a former Selectman from Barre, and he has always remembered his roots. Indeed, the local officials from the 29 communities in his district know they have no better friend on Beacon Hill than Sen. Brewer. That’s why he is receiving this award for the third time, a record matched by only one other Senator in the past 30 years – Senator Therese Murray.
Representative Stephen Kulik
Rep. Kulik is the Vice Chair of the House Ways and Means Committee. Local officials have heard and spoken accolades about Rep. Kulik for years – that’s because he also has local government in his veins as a former selectman from Worthington, and as a past president of the MMA and the Massachusetts Selectmen’s Association. He is also now a three-time MMA Legislator of the Year, the only House member to match Speaker DeLeo’s “three-peat” performance. Rep. Kulik cares passionately about building and protecting strong communities, and every year he stands tall to advance the principles of home rule, and hometown government.
Senator Steven A. Baddour
Sen. Baddour is the Vice Chair of the Senate Ways and Means Committee. Senator Baddour was a key strategist on municipal health reform, and his strong advocacy among his colleagues, on the committee and on the Senate floor was essential. Sen. Baddour is a powerful voice for the taxpayer, and for communities, which is why he received the MMA’s 2004 Legislator of the Year recognition as well. His efforts and leadership are truly appreciated.
Representative Bradley H. Jones, Jr.
Rep. Jones is the House Minority Leader. He is a former selectman from North Reading, and his connection to towns and cities has always been strong. Not only did Rep. Jones support the municipal health insurance and pension reforms, he submitted the amendment accepted by the House to return $65 million in local aid to communities in October, offsetting 100 percent of the local aid cut originally included in the fiscal 2012 state budget. His resourcefulness in identifying a revenue stream from unspent funds in the fiscal 2011 budget enabled the Legislature to send a budget to the governor that improved the local aid position for every city and town.
Representative John W. Scibak
Rep. Scibak is the House Chair of the Public Service Committee. He was appointed to this key post last January, and immediately championed municipal health insurance reform, comprehensive pension reform, and all local government causes. His work made it possible for real reform to prevail. A former selectman from South Hadley, Rep. Scibak was also the MMA’s 2005 Legislator of the Year, and has a long record of support for the communities of the Commonwealth.
Senator Katherine M. Clark
Sen. Clark took the helm last January as Senate Chair of the Public Service Committee, and was immediately placed in the center of the debates around municipal health insurance reform and pension reform. Her work helped strong reform to prevail in a very challenging environment, facing tough odds. She meets with all stakeholders and has an open door to all local officials. Everyone in her district knows that she is always responsive and caring about local government.
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