Dear Senator,

On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association would like to express our deep appreciation to Senate President Therese Murray, Chairman Stephen Brewer, the members of the Senate Ways and Means Committee, and all members of the Senate for the strong support given to cities and towns in the fiscal 2013 state budget recommendation (S. 4) before you for consideration this week.

The Senate Ways and Means Committee’s proposed state budget would bring much-needed stability to municipal finances and public services at the local level. It is abundantly clear that municipal and school aid have been placed at the top of the priority list as the Senate shapes its budget framework for fiscal 2013, and local officials and taxpayers in every corner of Massachusetts are certainly grateful.

The Senate Ways and Means budget funds the Unrestricted General Government Aid (UGGA) account at $900 million, increasing the base appropriation on the Cherry Sheet by $66 million. This is very similar, and slightly exceeds, the House-voted appropriation. Funding for this account is a top priority for municipal leaders, and the Committee recommendation is very much appreciated. The budget before you would add $66 million to the municipal aid 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 appreciate the Senate Ways and Means Committee’s recommendation to invest in key school aid accounts, including adding $180 million to Chapter 70 school aid to ensure that all municipal and regional school districts can reach the “foundation” level of spending, that progress is made implementing “target share” aid, and that all districts receive an increase of at least $40 per student next year.

The MMA would also like to call special attention to and applaud the $29 million added to the special education “circuit breaker” account to fully fund the state’s statutory 75 percent share of eligible costs. This is a key education account for districts across the Commonwealth, and full funding is a powerful statement of support for every community and school district. When this account is underfunded, communities must divert other municipal resources away from valuable programs. Full funding of the special education “circuit breaker” leverages funding for other important school and municipal services.

Overall, the Senate Ways and Means Committee increases municipal and school aid by approximately $130 million compared to the Governor’s original House 2 submission, a noteworthy accomplishment in challenging fiscal times.

Of the 694 amendments before you for consideration this week, there are many that would have an impact on local government. Below we provide brief comments on a several of them. Please contact us if further information would be helpful or you would like comments on any amendment not covered in this letter. We respectfully ask you to take the following action on these budget amendments:

SUPPORT AMENDMENT 62 – COMMUNITY PRESERVATION ACT: This amendment filed by Sen. Cynthia Creem and Senate Minority Leader Bruce Tarr, and co-sponsored by many other Senators, would add a supplemental financing plan to the Community Preservation Act (CPA) enhancement provisions that the Senate Ways and Means Committee has included in S. 4 (sections 55-71). This amendment would provide additional funding for the CPA based on an annual transfer of $25 million from any end-of-year state budget surplus and place these dollars into the CPA Statewide Trust Fund. This is a very positive alternative to an increase in the registry of deeds recording fees, which is the only way to meet the demand for CPA funds under the current framework.

OPPOSE AMENDMENT 136 – HUGE EXPANSION OF COLLECTIVE BARGAINING AND EROSION OF EXISTING MANAGEMENT RIGHTS: This measure would totally 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. This amendment would strip municipal executives, including managers, selectmen, mayors, and police and fire chiefs, of basic management authority that has existed in the law for decades.

OPPOSE AMENDMENTS 12 AND 232 – MEMBERSHIP ON THE OPEB COMMISSION: These amendments would make changes to the special commission established last year to study and make recommendations relative to Other Post-Employment Benefits (OPEB). The Commission currently has a balanced and well-qualified membership, led by a very able chair, that has already started its work. These amendments would lead to an unbalanced group and disrupt the work that is under way.

SUPPORT AMENDMENT 358 – MCKINNEY-VENTO STATE MANDATE FUNDING: This amendment would add $11.3 million to fully fund the unfunded state mandate for homeless student transportation costs triggered by state acceptance of the federal McKinney-Vento Act. This section would provide the funding to cover the certified costs that the Department of Elementary and Secondary Education (DESE) would be required to determine through regulations under Section 124 of S. 4.

OPPOSE AMENDMENT 423 – DIVERSION OF LOCAL AID TO FORCE 100% MUNICIPAL FUNDING FOR QUINN BILL: The MMA strongly opposes this amendment, 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 this amendment, 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 amendment would effectively impose a completely unaffordable $50 million unfunded mandate on cities and towns and wipe out almost all of the $66 million increase in UGGA that is included in the proposed budget.

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 (jrobertson@mma.org) or me at any time.

Again, thank you very much for your very strong support for cities and towns in the fiscal 2013 state budget.

Sincerely,

Geoffrey C. Beckwith
Executive Director, MMA

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