Baker administration announces $34M increase in unrestricted municipal aid for FY16

Gov. Charlie Baker will propose a $34 million increase in unrestricted municipal aid and a $105.3 million boost to Chapter 70 school aid in the fiscal 2016 state budget proposal he will unveil tomorrow.

Gov. Baker and Lt. Gov. Karyn Polito made the announcement in the State House at a meeting of the Local Government Advisory Commission this afternoon. MMA President David Dunford, who also chairs the LGAC, welcomed the news, saying it was “a great start to the state budget process and a strong partnership with cities and towns.”

The governor’s budget submission would provide $980 million for Unrestricted General Government Aid, a $34 million increase over current funding. This fulfills one of Gov. Baker’s major campaign promises to increase direct municipal aid in fiscal 2016 by at least 75 percent of the growth rate in state tax revenues, with a target of reaching 100 percent in future years.

The $34 million would increase UGGA funding by 3.6 percent, which is 75 percent of the projected 4.8 percent increase in state tax collections next year.

Noting that this would be the largest increase in discretionary municipal aid in nearly a decade, MMA Executive Director Geoff Beckwith applauded the Baker-Polito UGGA proposal during the LGAC meeting, commenting that “municipal aid is clearly a top priority for your administration, and the $34 million increase is needed to fund essential services and programs that build strong communities.”

The governor’s budget submission will propose a 2.4 percent increase in Chapter 70 education aid, or $105.3 million, with a provision guaranteeing every city, town and school district an increase of at least $20 per student. This Chapter 70 increase would be similar to growth levels in recent years, although the MMA is urging the governor and the Legislature to agree on a budget that provides minimum aid of at least $100 per student.

Details on funding for other municipal and education aid budget items will be available when the governor releases his budget plan tomorrow.