News: Press Releases & Statements
Under the Dome: It's Time to Repay Cities and Towns
01.10.08 | Contact: Meredith Warren, 617-722-2100
BOSTON—Ask any state legislator whether they think it is important to give cities and towns more local aid, and I guarantee they will tell you it is one of their top priorities.
Unfortunately, not enough of my colleagues on Beacon Hill are currently willing to put the money where their mouths are.
I recently filed legislation directing the state to return $450 million in local aid to the 351 cities and towns in Massachusetts—money that communities could use right now to help pay for their most pressing needs.
Locally, the bill would provide a huge boost. Reading would receive $1,203,143; North Reading would receive $608,496; Middleton would get $266,820; and Lynnfield would receive $448,595.
Not only can state government afford to make these payments immediately, I believe the money is rightfully owed to cities and towns.
Here’s why: Under my plan, the $450 million local aid payment would be drawn from the state’s $2.3 billion Rainy Day Fund, which is now at its highest level ever in state history.
The fund got that big because during tough fiscal times several years ago, the Legislature decided to divert $450 million in local aid payments away from cities and towns and into state coffers. That local aid money came from state Lottery revenues, which were originally promised to cities and towns as local aid when the Lottery was created in 1971.
But while the state was busy accumulating money in anticipation of a budget crisis, local governments struggled to pay their bills. Many communities were forced to cut programs and workers, and residents were asked to raise their own taxes by passing Proposition 2 1/2 tax overrides.
In the end, the state did not need the money it diverted from cities and towns, and it continues to sit untouched in the now very full Rainy Day Fund. It only makes sense to put the money back where it belongs: with local communities.
Unbelievably and unfortunately, many on Beacon Hill do not agree.
Some legislators, including House Ways and Means Committee Chairman Robert DeLeo, say that local communities could not effectively budget the one-time $450 million payment. They suggest that city and town officials would not use the money appropriately for one-time expenses, that they would make short-sighted spending decisions, and that they would then be hamstrung the following year when the payment does not recur.
I happen to trust local officials. I believe that city and town leaders would use the one-time local aid payment prudently, and to the greatest benefit of their residents. Also, I have always believed that money is best spent at the local level, where it can be used in school classrooms, to maintain strong public safety forces or to continue to fund important community programs.
Along with other members of the House Republican Caucus, I contacted nearly 4,500 municipal officials across Massachusetts explaining the proposal to return the $450 million to them. Although they realize the plan offers only a one-time payment, many are voicing support and are writing their own letters to legislative leaders to urge them to do the right thing.
Gov. Deval Patrick is required by law to file his budget plan for next year by January 23, and it is unclear at this time whether he plans to increase local aid for cities and towns. Based on the reception my local aid bill has received from other lawmakers, it is also unclear whether budget writers in the Legislature will see the wisdom in giving cities and towns additional financial help next year.
As we enter budget season on Beacon Hill, I am focused on convincing them. Giving back the $450 million now would show cities and towns that state officials are serious about increasing local aid.
Cities and towns played along when the Legislature anticipated tough fiscal times and pocketed $450 million in local aid money, just in case. Now it is up to us in the Legislature to play fair and return the unused money to cities and towns immediately.
Brad Jones, R-North Reading, is a state representative and is the minority leader of the Massachusetts House of Representatives.
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