MMA letter to House regarding FY13 state budget

Dear Representative,

On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association would like to express our deep and abiding appreciation to 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 2013 budget recommendation (H. 4100) before you for consideration this week. The last four years have been an extraordinary challenge for state and local government alike, and this budget bill would bring much-needed stability to municipal finances and public services at the local level. Clearly, cities and towns are embraced as a top priority in the proposed budget.

The House Ways and Means Committee budget funds the Unrestricted General Government Aid account at $899 million, increasing the base appropriation on the Cherry Sheet by $65 million. The Governor proposed level-funding UGGA at $834 million, and tentatively providing a later supplemental distribution of $65 million in October if the state ends fiscal 2012 with a surplus. But with fiscal 2012 state revenues coming in below expectations, the $65 million is not guaranteed under the Governor’s plan, and communities wouldn’t have any idea how much aid, if any, would result in October, making it impossible to include the funds in fiscal 2013 operating budgets. The House budget would solve this problem by making the $65 million permanent and adding it to the base so that cities and towns can make full use of the funds for ongoing operations and essential services in their fiscal 2013 budgets.

After a municipal aid reduction of nearly $500 million since fiscal 2009, this increase is vitally needed to allow cities and towns to maintain municipal services and avoid higher reliance on the property tax. It is also important to note that the Committee’s recommendation recognizes the projected increase in state Lottery revenues for fiscal 2012 and 2013, and makes sure that cities and towns receive their Lottery dollars as intended in state law.

City and town leaders also applaud the House Ways and Means Committee’s recommendation to invest in key local aid accounts in several major ways: by adding $18.5 million to Chapter 70 school aid to ensure that all municipalities and districts receive an increase of at least $40 per student next year; by adding $8.4 million to the special education “circuit beaker” account; by fully funding the $11.3 million mandate for homeless student transportation costs triggered by state acceptance of the federal McKinney-Vento Act; and by adding $2 million to regional school transportation reimbursements. Overall, the House Ways and Means Committee increases municipal and school aid by approximately $105 million compared to the Governor’s original House 2 submission, a remarkable achievement in tight fiscal times.

Of the 870 amendments filed for consideration this week, there are many that would have an impact on local government. Below we provide brief comments on a number of them. Please contact us if further information would be helpful or you would like comments on any amendment not covered in this letter.

SUPPORT AMENDMENT 737 – COMMUNITY PRESERVATION ACT: This amendment, filed by Vice-Chair Stephen Kulik and House Minority Leader Bradley Jones, would update and fund the Community Preservation Act (CPA). The amendment includes all provisions from current CPA legislation (H. 765) except that the funding mechanism would be an annual transfer of $25 million from any end-of-year state budget surplus into the CPA Statewide Trust Fund rather than an increase in the registry of deeds recording fees.

OPPOSE AMENDMENTS 314 & 438 – DIVERSION OF LOCAL AID TO FORCE 100% MUNICIPAL FUNDING FOR QUINN BILL: The MMA strongly opposes these amendments, which would effectively divert, earmark and reduce local Cherry Sheet Unrestricted General Government Aid (UGGA) to pay the state’s 50 percent share of the Police Incentive Pay Program. The state has eliminated the $50 million appropriation for its share. Under these amendments, the state’s share would be paid with existing local aid, which would then force every participating city and town to appropriate a matching amount from local property taxes, completely undermining the recent SJC decision that determined that cities and towns do not have to make up or match the state share unless a local contract requires them to do so. The amendments would effectively impose a completely unaffordable $50 million unfunded mandate on cities and towns.

OPPOSE AMENDMENT 242 – HUGE EXPANSION OF COLLECTIVE BARGAINING: This amendment is titled as a technical correction, but it is not. The measure would undermine existing management rights to appoint, promote, transfer and remove employees, especially in public safety, by overriding existing laws and making these decisions subject to collective bargaining and arbitration. The amendment would override state law and allow arbitrators and the JLMC to impose contract provisions that reduce the ability of cities and towns to make basic hiring, appointment, transfer and removal decisions.

SUPPORT AMENDMENT 596 – AMBULANCE PAYMENT: The MMA supports this amendment filed by Rep. Cantwell and others that would prohibit the practice of “pay the patient” for emergency medical transport services and clarify that cities and towns have the authority to set emergency medical service fees.

SUPPORT AMENDMENT 445 – GANG PREVENTION GRANTS: The MMA supports this amendment filed by Rep. Henriquez and others that would increase funding for the Shannon Gang Prevention Grant program from $2 million to $8 million.

SUPPORT AMENDMENT 222 – STUDY TO IMPROVE THE VETERAN’S BENEFITS PROGRAM: The MMA supports this amendment filed by Rep. Kaufman to establish a special commission to study the financing and administration of the veteran’s benefit program and make recommendations to improve the quality, effectiveness and efficiency of both state and local components.

SUPPORT AMENDMENT 854 – INSURANCE PROCEEDS: The MMA supports this amendment to allow cities and towns to use sums recovered under the terms of certain insurance policies to be used by the injured employee’s respective department without specific appropriation, provided those sums shall be used only for the purpose of covering costs associated with the injured employee’s absence.

SUPPORT AMENDMENT 533 – MCAD FUNDING: The MMA supports this amendment to provide $600,000 to reduce an estimated 3,000-case backlog at the Mass. Commission Against Discrimination.

SUPPORT AMENDMENT 776 – POWER OUTAGE PREVENTION: This amendment would authorize cities and towns to require that utility lines located within the publicly owned right-of-way be kept clear of trees and branches as a condition of the use of such public property by utility companies.

If you have any questions or would like any additional information, please do not hesitate to contact MMA Legislative Director John Robertson at (617) 426-7272 or jrobertson@mma.org at any time.

Thank you again for your very strong support for cities and towns in the fiscal 2013 state budget.

Sincerely,

Geoffrey C. Beckwith
Executive Director, MMA