House Passes $32.4B FY13 Budget with Local Aid Increases

Editor's note: The following information was courtesy of Massachusetts Municipal Association Legislative Director John Robertson and Mass.Gov.com.

On Thursday, the House of Representatives passed its Fiscal Year 2013 state budget in response to Governor Deval Patrick's $32.3 billion proposal, which was filed on Jan. 25th, according to a release issued on the state's official website, Mass.Gov.com.

"The final budget, after it is enacted by the Legislature and approved by the Governor, will take effect on July 1, 2012 and run through June 30, 2013," according to the state's website.

The House's FY13 budget calls for an increase in funding to local and education aid accounts by $105 million over the amount recommended by Governor Patrick in January, according to John Robertson, Massachusetts Municipal Association Legislative Director.

Robertson wrote the following on MMA's website, detailing Thursday's news from the State House.

The [municipal and educational aid] increases all come in areas identified as priorities by the MMA in testimony provided to the House and Senate Ways and Means committees at a pubic hearing earlier this year and at meetings with state budget leaders throughout the spring.

House members approved the recommendation of the House budget committee to fund the Unrestricted General Government Aid account at $899 million, adding $65 million to the base Cherry Sheet distribution. The UGGA amount reflects higher-than-expected growth in state Lottery profits, which are directed by state law to support local government services.

The governor had recommended level-funding UGGA at $834 million, with a possible supplemental distribution of up to $65 million if there is a sufficient state surplus at the end of this fiscal year. This would match the supplemental amount distributed last October.

The House also approved an increase of $18.5 million for Chapter 70 education aid, to $4.15 billion, in order to ensure that all school districts receive an increase of at least $40 per student next year.

The House budget would also increase funding for the special education “circuit breaker” account by $8.4 million, to $221.6 million, and funding for regional school district student transportation by $1.9 million, to $45.4 million.

The House budget would appropriate $11.3 million to pay reimbursements to municipalities and regional school districts for the cost of transporting homeless students under the federal McKinney-Vento Act. State Auditor Suzanne Bump ruled in January that the state’s acceptance of the federal grant with the local transportation obligation was an unfunded mandate under the state’s mandates law and should be reimbursed by the state.

Prior to debate, House members filed 870 amendments on a wide variety of matters, including many that would affect local government.

The House approved an MMA-supported amendment, filed by House Ways and Means Committee Vice Chair Stephen Kulik and House Minority Leader Bradley Jones, to update and increase funding for the Community Preservation Act.

The House rejected a number of amendments that were opposed by the MMA, including an attempt to earmark a portion of Unrestricted General Government Aid to pay the state’s 50 percent share of the Police Incentive Pay Program. (The state has eliminated any appropriation for its share of the program.)

In the area of public safety, the House approved an MMA-supported amendment to fund the Shannon gang prevention grant program at $5.5 million, the same level as this year.

The Senate is expected to release and debate its own budget proposal in mid-May. A final legislative budget is scheduled to be sent to the governor in time for the beginning of the fiscal year on July 1.

Learn More About the Budget and State Spending:

Massachusetts' official website, Mass.Gov.com, provides the following information about the Fiscal Year 2013 budget and state spending.

• The current budget (fiscal year 2012) will end on June 30, 2012.
• How does the budget move from a proposed document to law? Learn how the final budget is crafted including links to budget documents (when available).
• Download the cherry sheet information for your city or town (FY2012 or estimated FY2013). These official documents are issued once the state budget is enacted by the Legislature and approved by the Governor and show the estimated state aid each municipality or school district will receive.
• Take a look at the state's open checkbook for detailed information on state spending, see payroll and pension information and research vendor payments.
• Research historical federal stimulus spending at www.mass.gov/recovery.