Rep. Eldridge and Sen. Resor Announce House and Senate Reach Accord on Local Aid
$5.26 Billion Budgeted for Cities and Towns

BOSTON - 3/12/2008 - Representative Jamie Eldridge (D-Acton) and Senator Pam Resor (D-Acton) announced today that the House and Senate’s top budget writers have agreed to increase state aid to cities and towns in the FY09 Budget by $223 million, a 4.43 percent hike over last year in the three major categories of local aid – Chapter 70 funding for public schools, lottery aid and additional assistance.

“I know how important it is that the cities and towns receive the funding promised so that they can ensure quality education for all their students,” said Representative Jamie
Eldridge, “This resolution shows the Legislature’s commitment to fully funding Chapter
70 increases, however it is still important that we pursue other revenue generating options such as closing corporate tax loopholes and ending the telecommunications tax exemption.”

“Reaching an early accord on local aid is vital for towns and school districts as they prepare for the year with budgets and town meetings,” said Sen. Resor. “Despite difficult fiscal uncertainty, the legislature has committed to increasing local aid and Chapter 70. It is our priority in the legislature to continue supporting our communities.” 

The local aid resolution also maintains a commitment made by the Legislature three years ago by increasing Chapter 70 allocations by $223 million to $3.95 billion. The increase comes as part of a five year plan to move individual school districts toward their target aid contribution level. Under the Legislature’s plan, each school district would see an increase in Chapter 70 funding over last year.

The resolution guarantees cities and towns will receive $935 million in unrestricted local aid, $811 million of which is generated by the Massachusetts Lottery and $124 million of which is allocated from the Commonwealth’s General Fund. Since the Lottery was “uncapped” by the Legislature in Fiscal Year 2007, all revenue other than prize money and a small amount for administration goes to municipalities.

In FY09, however, only $811 million is projected to be generated—$124 million less than was allocated last year. The Legislature’s budget will ensure the additional $124 million is distributed and that cities and towns are held harmless to last year’s allotment.
The joint local aid resolution is expected to be debated in full formal session on Wednesday.