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March 11, 2008 ... The Senate and House leadership teams 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, according to Sen. Richard T. Moore, D-Uxbridge. 

Passage of a local aid resolution nearly four months before the start of the fiscal year will help cities and towns craft local budgets with greater confidence and accuracy.

“By passing this resolution early on in the budget process, we are making a clear commitment to the municipalities across the Commonwealth,” said Moore. “Across the Commonwealth and certainly on Beacon Hill, leaders are struggling to make difficult choices. This decision was not difficult, it must remain a priority in the Commonwealth to give our towns the resources they need to protect and educate.”

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.

“This resolution gives our cities and towns the answers they need to navigate through these fiscally challenging times,” President Murray said. “The upcoming fiscal year will be marked by difficult choices and competing priorities. This resolution underscores our commitment to our schools and each and every community across the Commonwealth.”

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 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.

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