Gov. signs FY12 budget, including 1-time local aid provision

Gov. Deval Patrick this morning signed the final fiscal 2012 state budget, which funds the main local aid accounts at the same levels as the governor, House and Senate had proposed early in the process.

The budget funds Chapter 70 education aid at $3.99 billion and Unrestricted General Government Aid at $834 million. The Chapter 70 amount reflects an increase of $139 million in the state appropriation over fiscal 2011, although it is $82 million lower than the current year’s combined state and federal support. The UGGA account was cut by $65 million, about 7 percent.

The budget signed by the governor, however, includes a special provision that is expected to provide a one-time supplemental local aid appropriation of $65 million this fall, which would offset the UGGA cut.

The provision requires that 50 percent of any “aggregate balance of appropriations” (unused appropriations in state budget accounts), not to exceed $65 million, be distributed to cities and towns no later than Oct. 31, 2011. The final allocation determinations will be made when the state closes the books on fiscal 2011, a process that could take two to three months.

At the budget signing ceremony, Administration and Finance Secretary Jay Gonzalez said he expects the final distribution amount to be $65 million.

The MMA will be closely monitoring the implementation of this provision.

The budget includes an $80 million increase in the Special Education Circuit Breaker program, bringing the account up to $213 million.

The regional school transportation reimbursement account is funded at $43.5 million, a $3 million increase over fiscal 2011.

The Payment-in-Lieu-of-Taxes account is funded at $27.3 million, a $1 million increase.

The budget eliminates funding for the Police Incentive Pay Program (Quinn Bill); approximately $60 million would have been required to fully fund the state’s 50 percent share. The state appropriated $5 million for this account in fiscal 2011.

The Legislature had enacted the fiscal 2012 budget and sent it to the governor on July 1, the first day of the fiscal year. The governor has 10 days to review the budget bill and issue any vetoes. He did not veto any appropriations this year.