House of Representatives
State House, Boston
 
Dear Representative,
 
On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association would like to thank Speaker Robert DeLeo, Chairman Brian Dempsey, the members of the House Ways and Means Committee and all members of the House of Representatives for the strong support given to cities and towns in the fiscal 2014 budget recommendation (H. 3400) before you for consideration this week.
 
While the last several years have been extraordinarily challenging, the strong partnership between local government and the House of Representatives has endured and made Massachusetts a model for states across the nation.
 
We would also like to thank the House for the strong vote earlier this month in favor of transportation finance legislation that would provide needed funds for critical transportation investments, including a $300 million Chapter 90 program, and provide some measure of support for operational spending next year. As you know, the MMA was an early endorser of the joint House-Senate framework that is now on the verge of enactment.
 
The MMA applauds the House Ways and Means Committee budget for adding $21 million to Unrestricted General Government Aid (UGGA), bringing that vital account to $920 million. Right now, municipal aid is $416 million million lower than it was in fiscal 2008 and reliance on the property tax to fund municipal budgets is at its highest point in 30 years. Community leaders will use this desperately needed increase in local aid to deliver essential municipal services and slow down their growing reliance on the property tax. It is important to note that the Committee’s recommendation recognizes the projected increase in Lottery revenues for fiscal 2014, and makes sure that cities and towns will receive all of their their Lottery dollars as intended by state law.
 
Of the 888 amendments filed for consideration this week, there are many that would add funding to joint state-local programs where the state’s share is significantly underfunded. Below we provide comments on those matters that are most important to local government. Please contact us regarding any of these issues if further information would be helpful or you would like comments on any amendment not covered in this letter.
 
Chapter 70 Education Aid
City and town leaders appreciate the House Ways and Means Committee’s recommendation to increase Chapter 70 school aid by $109 million to ensure that all municipalities and districts are able to reach the minimum “foundation” level of spending and receive an increase of at least $25 per student next year.
 
Even as H. 3400 fully funds the foundation budget formula, the allocation of aid does not include implementation of the 2006-passed reforms to establish a “target share” equity standard, which is one of the major reasons why the aid distribution in the budget before you is significantly lower for many communities and school districts than the budget offered by Governor Patrick in January. We ask you to support the several amendments to section 3 of H. 3400 that would restore funding for at least partial implementation of the target share standard enacted by the Legislature. These include Amendment 442 filed by Rep. Hill and others, Amendment 500 filed by Rep. Smizik, and Amendment 874 filed by Rep. Chris Walsh and others.
 
Special Education Circuit Breaker
The House Ways and Means Committee deserves praise for adding $5 million to the Special Education Circuit Breaker account, partially restoring the $11.4 million cut that was imposed by the Governor last December using his 9C power. However, the Department of Elementary and Secondary Education (DESE) estimates that it would require $248.2 million to fully fund the state’s 75 percent share of high-cost special education placements, which means that at $235.5 million, H. 3400 still significantly underfunds the state’s commitment. This state-local cost-sharing program is a key part of the landmark special education reform law enacted in 2000. In addition to reimbursements to communities and school districts, the Special Education Circuit Breaker appropriation is also used to reimburse DESE for administrative and related costs totaling more than $10 million, which means full funding of the total appropriation would require approximately $258.4 million.
 
We ask you to support several amendments that would bring funding up to or closer to the state’s full share, including the following: Amendment 4 filed by Rep. Hill to provide $255.5 million, an increase of $20 million; Amendment 148 filed by Rep. Fallon and 25 co-sponsors to provide $241.9 million to restore funding to the original fiscal 2013 level; Amendment 734 filed by Rep. Beaton and 20 co-sponsors to provide $255.5 million, an increase of $20 million; Amendment 793 filed by Reps. Chris Walsh and Sannicandro to provide $261.2 million, an increase of $25.7 million; and Amendment 846 filed by Rep. Peisch to provide $258.4 million, an increase of $22.9 million.
 
Reimbursements for School Aid Deductions for Charter School Tuition
It is vitally important to fund the Charter School Reimbursement Account in order to protect regular public schools from financial harm due to the diversion of Chapter 70 aid to charter schools. Underfunding the reimbursement account reduces funding for programs for the 97 percent of school children in traditional schools. DESE estimates that it would require $102.7 million to fully fund the state’s obligation to cover a portion of the loss of Chapter 70 school aid deducted from local public schools and paid as tuition to charter schools, as required in the 2010 education reform law reimbursement formula. Overall, DESE expects that and towns will be required to divert $406.8 million of their Chapter 70 aid to fund charter schools in fiscal 2014, $53.3 million more than in fiscal 2013, which demonstrates the importance of funding this key account to ease the blow to local districts that educate the vast majority of students.
 
H. 1 included an appropriation of $80.3 million. This amount is $9.8 million higher than the current fiscal 2013 level after the $1.0 million mid-year 9C cut. H. 3400 would level fund the account at $70.5 million.
 
We ask you to support Amendment 194 filed by Rep. Holmes to provide full funding. This is a very important priority for those communities that host charter schools – without full funding, programs for students in the traditional public school system will be harmed.
 
Municipal Room Occupancy Excise
We strongly support Amendment 111 filed by Rep. Turner that would allow cities and towns, by local vote, to expand the local room occupancy excise to include transient accommodations. This local option amendment would update the room occupancy excise to cover additional forms of occupancy and would provide municipalities with an enhanced local revenue source. This is an important issue of equity, and would close a loophole that unfairly allows certain temporary vacation rentals from paying the local room occupancy excise.
 
Shannon Anti-Gang Grants Program
We support Amendment 188 filed by Rep. Henriquez, Amendment 515 filed by Rep. DiNatale and Amendment 610 filed by Rep. Brady and others that would increase funding for the Shannon Anti-Gang Grant Program from $2 million to $8 million. This program is crucial to assist those communities dealing with very challenging public safety and gang-related issues.
 
Student Transportation Reimbursements
We ask you to support Amendment 72 filed by Rep. Turner and others that would add $5 million to reimbursements to school districts to help pay for a portion of the costs of transporting students (increasing the account from $45.5 million to $50.5 million). DESE estimates that it would require $78 million to cover the state’s full share of this program, which demonstrates how far the Commonwealth is from meeting its commitment. The $5 million amendment would certainly help all communities in regional school districts.
 
McKinney-Vento Mandate Reimbursement
We ask you to support Amendment 382 filed by Rep. Gordon and others and Amendment 590 filed by Rep. Stanley and others that would increase from $6.1 million to $11.3 million the appropriation to pay for the unfunded state mandate to provide transportation services to homeless students to schools outside the local school district. This would bring the program back up to the level that the House initiated last year when it created the line item, and restore the funds that were eliminated by the Governor when he imposed 9C cuts in December.
 
Payment-in-Lieu-of-Taxes for State-owned Land (PILOT)
We ask you to support Amendment 328 filed by Rep. Andrews and others, and Amendment 449 filed by Rep. D’Emilia that would increase from $26.3 million to $33.4 million the reimbursements paid under the law to cities and towns that host and provide municipal services to state facilities. PILOT payments are vitally important for those cities and towns that host state facilities, and the program has been underfunded for many years.
 
OPPOSE Amendment 30, Which Would Undermine the Public Safety Residency Law
We strongly urge you to oppose Amendment 30, which would effectively eliminate the statutory 10-mile residency requirement in state law for police officers and firefighters by unilaterally increasing the limit to 35 miles. Police officers and firefighters are required by law to live within 10 miles of the community in which they work. Many cities and towns have included residency provisions in their collective bargaining contracts, and this amendment would interfere with those agreements, disrupting the management of their public safety departments. A majority of communities have not included any residency provisions in their contracts, as the 10-mile range works well for them, and these localities would suddenly face serious management and logistical issues. Please oppose this amendment – this would be a major policy change that would impact police and fire departments across the Commonwealth, and should not be considered in the state budget.
 
Environmental Issues
We ask you to support Amendment 39 filed by Rep. Straus to enhance the dam safety bill enacted last year. This amendment would allow cities and towns to assess betterments to pay the cost of acquiring, owning, maintaining or improving a dam. These betterments could be assessed by local officials on properties that benefit from these dam safety measures, at amounts set by the appropriate board or official in the community.
 
We ask you to support Amendment 450 filed by Rep. Peterson, which would protect cities and towns against intrusive new regulatory requirements being developed by DEP by requiring the agency to submit to the Legislature a comprehensive report detailing the cost to communities for implementation of the “Sustainable Water Management Initiative” regulations. The final regulations could not be adopted sooner than 6 months after this analysis is submitted. The new SWMI requirements must be fully explained and their impact and cost must be fully understood before they are imposed on cities and towns, otherwise local taxpayers could be hit with huge and unexpected costs due to the new state rules.
 
Chapter 40S
We ask you to support Amendment 235 filed by Rep. Orrall that would provide $500,000 to fund payments due to cities and towns that have established “smart growth zoning districts” under Chapter 40R (the Smart Growth Zoning and Housing Production law) and qualify for “smart growth school cost reimbursements” under Chapter 40S.
 
Summary
The tragic events of the past week have demonstrated the resiliency and strength that defines Massachusetts. Images of the heroism of our public safety professionals, the bravery of volunteers and neighbors and strangers, and the skill of doctors, nurses and first responders will be with all of us forever. As the Commonwealth moves forward, we will do so together, focusing on those issues, priorities and challenges that unite us, and make this a special place. Local officials deeply appreciate the strong and abiding partnership with the House of Representatives, and look forward to working with you in the days, months and years ahead in this spirit.
 
If you have any questions or would like any additional information regarding the fiscal 2014 state budget, please do not hesitate to contact me or MMA Legislative Director John Robertson at (617) 426-7272 ext. 122 or jrobertson@mma.org at any time.
 
Thank you again for your very strong support for cities and towns during the fiscal 2014 state budget process.
 
Sincerely,
 
Geoffrey C. Beckwith
Executive Director, MMA

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