MMA letter to House members urging them to reject local aid cuts

Reject record local aid cuts, support the sales tax increase, and reinvest in communities to prevent widespread damage and distress

Dear Representative,

On behalf of cities and towns across the Commonwealth, the Massachusetts Municipal Association calls on you to reject the massive local aid cuts in the fiscal 2010 state budget that will be before you on Monday, April 27. The House Ways and Means proposal would inflict extraordinarily deep and harmful local aid cuts that would cause immediate and lasting damage to cities and towns in every corner of Massachusetts. This budget would force communities to lay off thousands of teachers, police officers, firefighters, public works employees, librarians and other key staff. Essential services would be severely weakened, and reliance on the regressive property tax would skyrocket. This budget would cause greater harm to the Massachusetts economy and make the recession last longer than necessary.

The budget proposal would slash municipal aid by $425 million below original (pre-9C) fiscal 2009 levels, a 32 percent reduction. This represents the largest municipal aid cut in history, and would bring municipal aid down to 1987 levels. Further, the House Ways and Means budget would eliminate over $150 million from other vital local aid accounts including special education funds (a $45 million cut), school transportation reimbursements (a $31 million cut), sewer rate relief (a $20 million cut), community policing grants and anti-gang programs (a $29 million cut), police career incentive payments (a $50 million cut), library grants (a $7 million cut) and other valuable programs. The proposed House budget would result in a total local aid cut of nearly $600 million. The budget plan would level-fund Chapter 70 and the PILOT program as proposed by the Governor in January.

It is urgent that you reject these cuts and restore local aid, including using state stabilization funds, federal stimulus funds, and increasing state taxes. The MMA strongly supports raising the state sales tax by 1 percent to provide shared relief for state and local government. This is a needed investment to protect the very services that hold up our state’s economy. Even with this tax increase other revenue and savings measures are essential. It is imperative that the Legislature immediately enact a real municipal relief bill that removes health insurance decisions from collective bargaining, finally allows for local option taxes, and closes the telecommunications property tax loopholes that give the telephone company a $50 million tax break that cannot be justified in these difficult times.

The reality is that this budget would deepen the fiscal crisis for cities and towns, force sweeping and damaging cuts to public safety, education, road and bridge maintenance, libraries and other vital services, increase reliance on property taxes, and erode the very services that support our economy.

This is a shared crisis, and cities and towns need basic levels of local aid and powerful tools to protect their communities. This budget does not contain the local aid or municipal management tools that are required. Local leaders call upon the Legislature to take this necessary action and work together as partners to deliver essential services to the people of the Commonwealth. Unless this action is taken, communities will be weaker, Massachusetts will experience a longer and deeper recession, and our economic recovery will be postponed.

PLEASE SUPPORT THE FOLLOWING KEY BUDGET AMENDMENTS:

• Amendment 702 sponsored by Representative Ruth Balser and others that would restore municipal aid to fiscal 2009 pre-9C levels;

• Amendment 26 sponsored by Representative Peter Kocot that would establish local-option meals tax of up to 3 percent;

• Amendment 458 sponsored by Representative Cleon Turner and others that would increase the local-option room occupancy tax by up to 2 percent and expand the base to ensure collection from seasonal rentals;

• Amendment 701 sponsored by Representative Ruth Balser that would close the telecommunications tax loopholes;

• Amendment 529 sponsored by Representative Denis Guyer that would restore regional school transportation funds;

• Amendment 436 sponsored by Representative Christopher Fallon that would restore funding for the Quinn Bill;

• Amendment 700 sponsored by Representative Ruth Balser that would restore funding for the special education circuit-breaker;

• Amendment 155 sponsored by Representative Karyn Polito that would take health insurance plan design out of collective bargaining; and

• Amendment 913 sponsored by Representative Denise Provost that would ensure that no community or school district loses more money to charter schools next year.

Cities and towns need your support to prevent the fiscal crisis from becoming a fiscal catastrophe that would harm the services, residents and taxpayers of Massachusetts. Failure to protect cities and towns will deepen the recession and inflict unnecessary harm on the communities and people of the Commonwealth. Together, we know that Massachusetts can overcome the crisis that confronts us.

Sincerely,

Geoffrey C. Beckwith
MMA Executive Director