Govenor's statement

Governor’s Statement

Dear Municipal Leader,

Today, I signed the Fiscal Year 2014 (FY14) budget. It is a balanced budget that supports core programs and policies that will help us build a better, stronger Massachusetts.

There are many things in this budget of which to be proud, including:

$4.301 billion in Chapter 70 K-12 Education funding, a $130 million (3%) increase over FY13, making this the highest level of Chapter 70 funding in the state’s history;

$252 million to fully fund reimbursement of special education costs for cities and towns, an increase of $22 million (10%) over FY13;

$51.5 million in Reimbursements to Regional School Districts for the transportation of pupils, a $7 million (16%) increase from FY13;

$26.7 million for the Payment In Lieu of Taxes (PILOT) program for cities and towns, an increase of $500,000 (2%) above FY13; and

$48.3 million for Reimbursements to Municipalities for Veterans Benefits, an increase of $6 million (12%) above FY13.

These investments are further examples of the strong partnership between state government and the Commonwealth’s cities and towns.

However, in order to balance the budget, I have had to reduce spending (I hope only temporarily).  This is because the Legislature’s budget depends on new tax revenue from the Transportation Finance bill that has not yet been enacted into law.  To take account of that uncertainty, while the Legislature works out a final bill, I have reduced spending in the budget in both unrestricted Local Aid, by $177 million, and transportation, by $240 million.

I think you know how we got here.  In January, I presented a comprehensive growth plan to invest in education and transportation.  That plan included $1.2 billion for targeted investments in local and regional transportation needs in all corners of the state, and an equitable way to pay for them.  

Since then, the Legislature has adopted a transportation bill that aims to raise $800 million per year.  I am willing to compromise at that level so long as the revenue is reliable.  The Legislature’s bill counts revenue from the tolls on the western turnpike that go away in a few years.  I have asked the Legislature to close that gap before I sign the bill.

The reason this matters to you for budgeting purposes is that the Legislature included revenue for the general fund in its transportation proposal.  Without that, the conference budget they have sent me is out of balance.

I support the Local Aid funding included in the conference budget (I originally proposed more), and I have proposed a mechanism to automatically restore the funding if the Legislature enacts my amendment to the transportation finance bill.  That way, in tandem with a transportation bill that provides a reliable $800 million for our transportation infrastructure, we can make good on the full amount of Local Aid.

I look forward to working with you to support Local Aid and our transportation needs with the strong and reliable funding both need and deserve.