GOVERNOR SIGNS FISCAL 2015 STATE BUDGET
Approves Legislature’s Appropriations on Key Municipal and Education Aid Accounts
At 9:45 this morning (7/11/14), ten days after receiving the $36.5 billion fiscal 2015 state budget from the Legislature, Governor Patrick signed the budget into law, approving approximately $50 million more in overall funding for municipal and school aid accounts than the budget he originally filed in January.
$25.5 MILLION INCREASE FOR UGGA AND $99.5 MILLION INCREASE FOR CHAPTER 70 FINALIZED
The fiscal 2015 budget increases funding for several key municipal and education aid accounts, including a $25.5 million increase in Unrestricted General Government Aid (UGGA) and a $99.5 million increase in Chapter 70 funding – these are the same funding levels that were announced in the Legislature’s March local aid resolution.
The fiscal 2015 budget increases funding for several key municipal and education aid accounts, including a $25.5 million increase in Unrestricted General Government Aid (UGGA) and a $99.5 million increase in Chapter 70 funding – these are the same funding levels that were announced in the Legislature’s March local aid resolution.
GOVERNOR SIGNS FULL FUNDING FOR SPECIAL EDUCATION CIRCUIT-BREAKER
The final budget plan supports full funding for the Special Education Circuit-Breaker Program, using the Legislature’s calculation to arrive at the full funding number of $260.4 million, a $5 million increase over fiscal 2014.
The final budget plan supports full funding for the Special Education Circuit-Breaker Program, using the Legislature’s calculation to arrive at the full funding number of $260.4 million, a $5 million increase over fiscal 2014.
GOVERNOR SIGNS $18.7 MILLION INCREASE FOR REGIONAL SCHOOL TRANSPORTATION REIMBURSEMENTS AND $2.24M FOR TRANSPORTATION REIMBURSEMENTS FOR OUT-OF-DISTRICT VOCATIONAL STUDENTS
The budget signed by the Governor includes the Legislature’s recommendation to increase regional school transportation reimbursements by $18.7 million, a 36% boost over the current year, raising the appropriation to $70.25 million. This is a major victory that will bring the state to 90% of full funding, the highest level in a generation. The budget also includes $2.24 million for transportation reimbursements for out-of-district vocational students. This is down slightly from the fiscal 2014 budget, but is a significant improvement over the Administration’s initial budget, which would have eliminated the program.
The budget signed by the Governor includes the Legislature’s recommendation to increase regional school transportation reimbursements by $18.7 million, a 36% boost over the current year, raising the appropriation to $70.25 million. This is a major victory that will bring the state to 90% of full funding, the highest level in a generation. The budget also includes $2.24 million for transportation reimbursements for out-of-district vocational students. This is down slightly from the fiscal 2014 budget, but is a significant improvement over the Administration’s initial budget, which would have eliminated the program.
FINAL BUDGET LEVEL FUNDS PILOT PAYMENTS
The final fiscal 2015 budget signed this morning maintains funding for the payments-in-lieu-of-taxes (PILOT) program at the current $26.77 million level, which is $500K higher than the Administration’s original proposal.
The final fiscal 2015 budget signed this morning maintains funding for the payments-in-lieu-of-taxes (PILOT) program at the current $26.77 million level, which is $500K higher than the Administration’s original proposal.
FINAL BUDGET INCREASES FUNDING FOR THE SHANNON ANTI-GANG GRANT PROGRAM
The Governor approved $8.25 million for the Shannon anti-gang grant program, a $1.25 million increase to a program that provides essential funding to help cities and towns respond to and suppress gang-related activities.
The Governor approved $8.25 million for the Shannon anti-gang grant program, a $1.25 million increase to a program that provides essential funding to help cities and towns respond to and suppress gang-related activities.
FINAL BUDGET PROVIDES $4.6M FOR THE SAFE AND SUCCESSFUL YOUTH INITIATIVE
The Governor approved funding for the Safe and Supportive Youth Initiative at $4.6 million in fiscal 2015. The program seeks to reduce youth violence through wraparound services for those most likely to be victims or perpetrators of gun violence.
The Governor approved funding for the Safe and Supportive Youth Initiative at $4.6 million in fiscal 2015. The program seeks to reduce youth violence through wraparound services for those most likely to be victims or perpetrators of gun violence.
FINAL BUDGET INCLUDES LANGUAGE TO SHARE STATE SURPLUS TO INCREASE STATE’S CPA MATCH
In recent years, the state’s match for the Community Preservation Act has been significantly underfunded. The fiscal 2014 budget adopted last year included a provision to use end-of-the-year surplus revenues from fiscal 2013 to boost reimbursements by $25 million, breathing new life into the state’s CPA match. Because of lagging deeds excise collections, this money was added to the CPA program to double the state match, from 26% to about 50%. A similar step is required again this year, otherwise cities and towns that have adopted the CPA will see a much lower state match in fiscal 2015.
The Governor approved section 242 of the fiscal 2015 state budget, to transfer one-half of the “consolidated net surplus” left over from fiscal 2014, up to $25 million, into the Community Preservation Trust Fund. This is a very positive development. However, the state’s final fiscal 2014 surplus level will not be determined until September or October, because it will still take several months before the state’s CPA match is determined.
In recent years, the state’s match for the Community Preservation Act has been significantly underfunded. The fiscal 2014 budget adopted last year included a provision to use end-of-the-year surplus revenues from fiscal 2013 to boost reimbursements by $25 million, breathing new life into the state’s CPA match. Because of lagging deeds excise collections, this money was added to the CPA program to double the state match, from 26% to about 50%. A similar step is required again this year, otherwise cities and towns that have adopted the CPA will see a much lower state match in fiscal 2015.
The Governor approved section 242 of the fiscal 2015 state budget, to transfer one-half of the “consolidated net surplus” left over from fiscal 2014, up to $25 million, into the Community Preservation Trust Fund. This is a very positive development. However, the state’s final fiscal 2014 surplus level will not be determined until September or October, because it will still take several months before the state’s CPA match is determined.
GOVERNOR APPROVES NET SCHOOL SPENDING EQUITY PROVISIONS
The Governor signed section 260 of the fiscal 2015 budget to establish equity in calculating net school spending under Chapter 70 by allowing, at local option, all communities to count health insurance costs for retired school employees in fiscal years 2016 and beyond, phased in over 4 years, and allowing DESE to waive penalties in the meantime. This important MMA-supported provision is needed because the current rule excludes these costs from net school spending in some districts, but allows the costs to count in others. Communities that have been prohibited from counting retiree health costs in net school spending have been forced to reduce spending municipal services or raise property taxes to make up the difference.
The Governor signed section 260 of the fiscal 2015 budget to establish equity in calculating net school spending under Chapter 70 by allowing, at local option, all communities to count health insurance costs for retired school employees in fiscal years 2016 and beyond, phased in over 4 years, and allowing DESE to waive penalties in the meantime. This important MMA-supported provision is needed because the current rule excludes these costs from net school spending in some districts, but allows the costs to count in others. Communities that have been prohibited from counting retiree health costs in net school spending have been forced to reduce spending municipal services or raise property taxes to make up the difference.
GOVERNOR RE-ESTABLISHES THE FOUNDATION BUDGET REVIEW COMMISSION
The Legislature’s final budget (in sections 124 and 278) included an MMA-backed provision to re-establish the Foundation Budget Review Commission in order to examine the adequacy of Chapter 70 funding, and the Governor signed these provisions this morning. The foundation budget school spending standard that guides Chapter 70 funding was first enacted as part of the landmark 1993 education reform law and has largely remained unchanged since that time. In addition to the need to adjust the foundation budget to reflect the many substantial changes that have occurred in public education over the past 20 years, the current foundation budget structure clearly understates many key education expenses, and does not fully reflect the cost of operating modern school systems, as evidenced by the fact that cities and towns spend $2.1 billion more to run their schools than the amount called for in the foundation budget, and a majority of districts are slated to only receive less-than-adequate minimum aid increases in the future. This language will provide a much-needed review of the foundation budget framework, and includes municipal representation in the process.
The Legislature’s final budget (in sections 124 and 278) included an MMA-backed provision to re-establish the Foundation Budget Review Commission in order to examine the adequacy of Chapter 70 funding, and the Governor signed these provisions this morning. The foundation budget school spending standard that guides Chapter 70 funding was first enacted as part of the landmark 1993 education reform law and has largely remained unchanged since that time. In addition to the need to adjust the foundation budget to reflect the many substantial changes that have occurred in public education over the past 20 years, the current foundation budget structure clearly understates many key education expenses, and does not fully reflect the cost of operating modern school systems, as evidenced by the fact that cities and towns spend $2.1 billion more to run their schools than the amount called for in the foundation budget, and a majority of districts are slated to only receive less-than-adequate minimum aid increases in the future. This language will provide a much-needed review of the foundation budget framework, and includes municipal representation in the process.
FINAL BUDGET UNDERFUNDS CHARTER SCHOOL AND McKINNEY-VENTO REIMBURSEMENTS
The final fiscal 2015 state budget plan underfunds the charter school reimbursement program and the McKinney-Vento homeless student transportation mandate. The charter school reimbursement program will be fully funded in fiscal 2014, thanks to the recent $27.6 million supplemental budget that the Legislature passed several weeks ago. However, the fiscal 2015 budget would provide only $80 million, which will create a $33 million shortfall that must be addressed in the very near future. In addition, the final budget provides only $7.4 million for the McKinney-Vento requirement to transport homeless students back to their most recent school district, which is $7.5 million below the amount needed to fully fund this state mandate. The MMA will continue to prioritize these programs and call for full funding this year in all supplemental budget proposals.
The final fiscal 2015 state budget plan underfunds the charter school reimbursement program and the McKinney-Vento homeless student transportation mandate. The charter school reimbursement program will be fully funded in fiscal 2014, thanks to the recent $27.6 million supplemental budget that the Legislature passed several weeks ago. However, the fiscal 2015 budget would provide only $80 million, which will create a $33 million shortfall that must be addressed in the very near future. In addition, the final budget provides only $7.4 million for the McKinney-Vento requirement to transport homeless students back to their most recent school district, which is $7.5 million below the amount needed to fully fund this state mandate. The MMA will continue to prioritize these programs and call for full funding this year in all supplemental budget proposals.
GOVERNOR SIGNS BUDGET PROVISION TO EXTEND A FREEZE ON RETIREE HEALTH CONTRIBUTION PERCENTAGES FOR THOSE COMMUNITIES THAT USED THE 2011 MUNI HEALTH REFORM LAW
As expected, the Governor approved sections 76 and 77 of the fiscal 2015 budget to extend the existing 3-year freeze on changing retiree health insurance contribution percentages by an additional 2 years, until July 1, 2016, for those communities that made plan design changes or joined the GIC under the 2011 municipal health reform law.
Before today, any city or town that used sections 22 or 23 of Chapter 32B (the 2011 municipal health insurance reform law) to implement plan design changes or join the GIC was prohibited from changing retiree health insurance contribution percentages until July 1, 2014. Sections 76 and 77 of the fiscal 2015 budget would unilaterally extend that freeze for two more years, until July 1, 2016, for any municipality that adopted or is planning on adopting provisions of the 2011 municipal health insurance reform. Under this change, any community that has used or plans on using Chapter 32B to make plan design updates or join the GIC would be prohibited from changing retiree contribution percentages for two more years unless the municipality voted to change the contribution rate prior to May 1, 2014. The provisions signed by the Governor would delay the ability of up to 70 communities to take action on retiree contribution percentages.
As expected, the Governor approved sections 76 and 77 of the fiscal 2015 budget to extend the existing 3-year freeze on changing retiree health insurance contribution percentages by an additional 2 years, until July 1, 2016, for those communities that made plan design changes or joined the GIC under the 2011 municipal health reform law.
Before today, any city or town that used sections 22 or 23 of Chapter 32B (the 2011 municipal health insurance reform law) to implement plan design changes or join the GIC was prohibited from changing retiree health insurance contribution percentages until July 1, 2014. Sections 76 and 77 of the fiscal 2015 budget would unilaterally extend that freeze for two more years, until July 1, 2016, for any municipality that adopted or is planning on adopting provisions of the 2011 municipal health insurance reform. Under this change, any community that has used or plans on using Chapter 32B to make plan design updates or join the GIC would be prohibited from changing retiree contribution percentages for two more years unless the municipality voted to change the contribution rate prior to May 1, 2014. The provisions signed by the Governor would delay the ability of up to 70 communities to take action on retiree contribution percentages.
GOVERNOR APPROVES PROCUREMENT THRESHOLD RELIEF FOR CITIES AND TOWNS
The Governor approved increases in the thresholds for the use of competitive sealed bidding in the municipal procurement of good and services from $25,000 to $35,000 (in sections 61-66). Below this threshold, cities and towns are required to solicit three written or oral quotes, or use sound business practices for the smallest procurements of less than $10,000. It is important to make regular adjustments to the specific dollar amounts listed in state statute to keep pace with inflation, and help cities and towns save time and money for small procurements.
The Governor approved increases in the thresholds for the use of competitive sealed bidding in the municipal procurement of good and services from $25,000 to $35,000 (in sections 61-66). Below this threshold, cities and towns are required to solicit three written or oral quotes, or use sound business practices for the smallest procurements of less than $10,000. It is important to make regular adjustments to the specific dollar amounts listed in state statute to keep pace with inflation, and help cities and towns save time and money for small procurements.
Massachusetts Municipal Association
One Winthrop Square, Boston, MA 02110
(617) 426-7272
One Winthrop Square, Boston, MA 02110
(617) 426-7272
There is some interesting reading here. Regional transportation was funded at 90%! The first time that has happened in a long time.
ReplyDeleteCPC money was increased. Now that the East Templeton building has an new roof, maybe we can ask for CPC money to repair the roof at Templeton Center. Templeton Center has needed a new roof for a very long time. if people don't want to repair that roof for the children, then think of it as an investment in preserving the building for future use once the new elementary school is built.
The biggest impact will come from the commission to review the foundation budget which is the basis for the calculation of Chapter 70 money for all school districts. This commission is long overdue.
You might wonder why the trim on Templeton Center School has not been painted in years. The answer may be that it is part of the roof, according to Mr. Clabaugh. Don't laugh, that is the excuse he gave at a Facilities Meeting, according to a source that was present. In the Town Of Templeton Annual Report for 2013, the amount listed for maintenance of buildings is listed at $171,925.02. That does not include maintenance of grounds or supplies or salaries. So what I would ask did they spend this money on ?? To include the trim as part of the roof, gets the School system off the hook, as the School Committee is only responsible for anything over $5,000.00. Thank you Hank Mason for reminding the people at this meeting of that fact. By the way, I was under the impression that the School Committee was working as a representative of the town. Did that concept get lost over the years ?? It sure looks that way to me. Bev.
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