Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
On June 30, Gov. Deval Patrick signed a $27.6 billion fiscal 2011 state budget bill that cuts the main municipal and education aid accounts by 4 percent, something that had been expected since legislative leaders announced the cuts in March.
The budget, which was signed just in time for the start of the fiscal year, has $457 million less in proposed spending as a result of vetoes by the governor. The vetoes were made to help cover for nearly $700 million in federal Medicaid funds that had been counted on throughout the budget process but did not materialize.
Budget negotiations were thrown into disarray at the end of June when it became clear that the additional Medicaid funds would not be approved by Congress by July 1 – and perhaps not at all. The Legislature sent the governor a spending plan with appropriations for many accounts including a base amount and a higher amount contingent on receipt of the federal funds. The governor generally vetoed the contingent appropriations.
While the governor did not reduce the main municipal and education aid accounts below the amounts approved by the Legislature, a number of smaller accounts were reduced below legislative funding levels that were approved in expectation of the federal funds.
Thirty states had counted on receiving a share of $24 billion in temporarily higher federal Medicaid reimbursement percentages that Congress and the president have supported at various times. Congressional leaders, however, were unable to secure the necessary votes to approve the funding.
Municipal and public safety aid
The Unrestricted General Government Aid account (UGGA) is funded at $899 million in the final budget, a cut of $37 million (4 percent). Unlike three years ago, when the state appropriated almost $500 million in tax revenues for municipal aid, Lottery revenues now account for 92 percent of UGGA funding, with state tax revenue accounting for less than $75 million.
Funding for other municipal and public safety accounts totals $113 million this year, about level-funded. Cuts to the regional library account, the payment-in-lieu-of-taxes account and others were offset by an increase in reimbursements for locally funded veterans services due to an increase in cost and the number of qualifying veterans.
Funding for the state’s 50 percent share of the Police Career Incentive Pay Program (the Quinn Bill), has been cut from $50 million two years ago to $5 million. The estimate of full funding for the state’s share is nearly $60 million.
Education aid
Chapter 70 education aid was funded at $3.93 billion, a cut of $116 million statewide, or about 3 percent. Most municipal and regional school districts were cut by 4 percent, while some received smaller cuts in order to avoid dropping below the state-set local foundation budget amount. The Chapter 70 amount includes a $3.85 billion appropriation of state tax revenues and the use of $75 million in remaining federal economic stimulus funds through the now-depleted State Fiscal Stabilization Fund account.
The budget level-funds regional school transportation reimbursements at $41 million and the special education circuit breaker program at $133 million. Kindergarten Development Grants are funded at $23 million, a cut of $3 million below fiscal 2010.
The final budget bill includes almost 200 sections that change state laws, including many not related to the state budget or finances. The final bill did not include any change to state law governing how decisions on health insurance plan design are made for municipal and school employees.