MMA’s Annual Meeting will ensure fast start on key issues

From The Beacon, January 2014

It’s hard to think about late summer as being just around the corner, especially with ice and snow covering our rooftops and driveways. But when it comes to the local government agenda on Beacon Hill, the state Legislature’s July 30 deadline to complete action on all substantive legislation is almost here. January will mark the beginning of a seven-month sprint to achieve success on dozens of key municipal issues.

Here’s a great way to kick off the New Year and ensure a fast start on our advocacy agenda: Come to the MMA’s Annual Meeting and Trade Show on Jan. 24 and 25. We’ll have 20 information-packed workshops, three high-level forums on emerging issues and challenges for communities, outstanding general sessions, and countless opportunities to network with colleagues from every corner of Massachusetts. In addition, we’ll be holding a special session to hear from all of the candidates for governor – the first event of its kind during the election season.

This year’s Annual Meeting theme is “Building Our Communities, Building Our Future,” because that’s what you are doing every single day. The Annual Meeting is an important tool for you to use as you construct a stronger tomorrow for Massachusetts. Please register today!

The conference is perfectly timed, too. Gov. Deval Patrick will file his fiscal 2015 state budget proposal two days before we convene, and then the entire budget moves to the Legislature. We’ll have up-to-the-minute analysis of the local aid and school funding amounts in the governor’s budget, and will immediately provide the information you will need to engage with your representatives and senators. Local aid is still $400 million below pre-recession levels, and with the state economy and tax revenues showing signs of a rebound, now is the time to seek significant reinvestment in the local services that are vital to our economic recovery.

The list of municipal issues pending at the State House is impressive, including everything from A(mbulance payments) to Z(oning). These issues cover a broad range of measures and are designed to strengthen cities and towns and their ability to deliver essential services, reduce reliance on regressive property taxes, promote a stronger federal-state-local partnership, enhance our economy, and ensure stability and recovery for communities and taxpayers.

In addition to working hard to safeguard community interests on all of these matters, the MMA Board of Directors met in October to establish a list of top priorities for the upcoming session. The board’s priority list is meant to highlight those matters that naturally rise to the top due to urgency and magnitude, and will not lessen our aggressive efforts on any other issue. The MMA’s priority issues are ambitious, and include winning significant increases and full funding for municipal and education aid accounts, enactment of a multi-year Chapter 90 bond bill at $300 million per year, securing new funding and investment in our aging drinking water, wastewater and stormwater infrastructure systems, and continued work to secure meaningful OPEB reform.

Here’s a look at the top issues and goals that the board has set for 2014:

Fighting for local aid: The MMA’s top priority will continue to be fighting for local aid to fund essential municipal and school services. In the fiscal 2015 state budget, this will include increasing Unrestricted General Government Aid by at least the same rate as the growth in state tax revenues. Based on the recent revenue hearing convened in December, that should translate to a $40 million-$50 million increase in UGGA. Further, Chapter 70 aid should be increased to get all communities up to foundation, provide $100 per student in minimum aid to all districts, and accelerate the phase-in of the target share reforms. Essential reimbursement programs must be fully funded, including the Special Education Circuit Breaker program, the regular and regional school transportation accounts, McKinney-Vento transportation of homeless students, Charter School reimbursements, and PILOT payments. Further, it is imperative that the state reject any effort to set conditions or earmarks on local aid, as attempts by the state to micromanage cities and towns inevitably lead to inefficiencies and undermine the local process that allows community citizens to determine the best way to build and fund local priorities.

Investing in local roads and bridges through Chapter 90: The MMA’s goals are clear: win a multi-year reauthorization of Chapter 90 funding at $300 million, indexed to inflation, and secure the release of the remaining $100 million from the fiscal 2014 authorization that is being withheld by the administration. Thirteen months ago, the MMA released a report documenting that cities and towns across the state need to spend at least $562 million every year just to bring local roads to a state of good repair, the industry standard. Currently, municipalities spend far less because of inadequate resources and because, for most cities and towns, Chapter 90 is the only source of funds for road construction and repairs. Funding the Chapter 90 program at $300 million annually, with an inflation-based adjustment in future years, will close a portion of this huge gap. The Chapter 90 program is also the most effective and efficient way to ensure regional equity and regional access to the increased tax revenues included in the final transportation finance bill, including the increase in the gas tax. Chapter 90 shares transportation revenues in a fair way in every corner of the Commonwealth. Further, cities and towns face such a backlog of need that the increase will immediately result in visible and necessary construction and repair projects on local roads across Massachusetts. Investing more in Chapter 90 funding to improve the quality of local roads will actually save taxpayers millions of dollars a year, because once a local road is in a state of good repair, every dollar invested to keep it properly maintained will save $6 to $10 in avoided repair costs that become necessary to rebuild the road when it fails due to a lack of maintenance.

Securing relief and resources for aging water infrastructure systems: MMA members have been coalescing around the urgent need to address the hidden infrastructure crisis in Massachusetts, our antiquated water, sewer and stormwater systems. Water and wastewater utilities are among the most capital-intensive of all utility services. Cities and towns across the Commonwealth have made enormous investments in water, wastewater, and drainage infrastructure, and know that these investments are essential. Yet we all know that other public assets, such as schools, roads and recreational facilities, are easier for the public to appreciate and fund because they are so visible. In terms of financial need, the water and wastewater assets in many parts of the state require far greater capital investment. The reliability and performance of these systems are essential to our everyday quality of life and economic future. The MMA’s goal is to secure long-term funding to assist with the repair and maintenance of municipal drinking water, wastewater and stormwater systems, and to secure relief from unfunded regulations and mandates that create unaffordable burdens on cities and towns. Legislation pending on Beacon Hill, filed by the Senate president and by the chairs of the Water Infrastructure Finance Commission, offers an opportunity for real progress this year.

Supporting solutions to the OPEB funding crisis: Over the next 30 years, our communities are facing a $30 billion unfunded liability to pay for retiree health insurance, a staggering burden that is totally unaffordable for taxpayers. Without major reform now, these costs will drive up local property taxes and force painful cutbacks in essential services that are vital to our economy. Without reform, cities and towns will be forced to reduce the number of teachers in the classroom, police officers on the streets, and firefighters on call for emergencies. Every service from public works to public health will be impacted. It is important to be clear that local officials and the MMA are calling for OPEB reform in order to protect public sector retiree benefits in both the short and long term. Cities and towns are committed to providing retirees with excellent health insurance benefits, yet these benefits must be affordable and sustainable for local taxpayers. Otherwise the resulting fiscal crisis will squeeze out funding for vital services, force layoffs of public employees, and drive up local property taxes. Time is of the essence – the earlier that Massachusetts embraces comprehensive OPEB reform, the easier the solutions will be. Delaying this issue or adopting a weakened package of reforms would merely impose a greater burden on the next generation of citizens, employees, retirees and taxpayers. The MMA will be working with local officials, legislators, retirees, employees and all stakeholders to increase awareness of the critical importance of this issue, and will be urging action on a comprehensive set of reforms that protect the ability and authority of cities and towns to manage their costs now and provide a sustainable framework for the future.

Here’s an understatement: there’s a lot of work ahead of us.

When we examine these major challenges and priorities, the seven months to the end of the legislative session look pretty short. True, we’re just cleaning up from New Year’s parties, the jet stream still has an arctic chill, and hazy summer days seem far off. But the reality is that time is short. That’s why this year’s Annual Meeting is so important. We’ll leave there in full sprint mode, working on vital issues to build our communities and a stronger future for Massachusetts.

Happy New Year, and see you at Annual Meeting!