January 7, 2005
ROMNEY PLEDGES 4.3 PERCENT BOOST IN LOCAL AID OVER LAST YEAR
Additional funds to support schools, police, fire and basic municipal services
At the annual meeting of the Massachusetts Municipal Association, Governor Mitt Romney today disclosed that his upcoming budget for Fiscal Year 2006 will boost the amount of state aid to cities and towns by 4.3 percent over the spending plan he signed last year.
“Over the past two years, the Commonwealth has partnered with our cities and towns to manage through some difficult times,” Romney said. “Now, times are better and the state is once again in a position to send more money back to our cities and towns.”
The budget recommendation that Romney files later this month for the fiscal year that begins July 1 will propose to increase the local aid distribution to communities from $4.237 billion to $4.420 billion, a $183 million hike.
Specifically, Romney announced that:
· Direct education spending – known as Chapter 70 – will rise by an estimated $81 million, from $3.183 billion to $3.264 billion.
· An additional $100 million will be allocated to cities and towns through the lottery, increasing that account to $761 million. This move makes permanent the one-time $75 million payment cities and towns received last summer after the original Fiscal Year 2005 budget was signed, plus increases it by another $25 million.
· The category of local aid known as Payment in Lieu of Taxes, or PILOT, which compensates cities and towns where tax-exempt state properties are located, will go up by 20 percent, from $12.5 million to $15 million.
Romney will also propose accelerating the five-year schedule to uncap the lottery, beginning in 2006 instead of 2007. The cap was imposed before Romney took office, but the Governor said the state’s brightened fiscal picture makes it possible to phase the cap out sooner.
Romney told the mayors and selectmen that he admires and appreciates the work that they do for the people who elected them.
“Local government is the core of our democratic republic. From public works to development and zoning, you make sure that every basic good and service is delivered. You are on the front lines. We know your job is hard, and Lieutenant Governor Healey and I appreciate the work that you do,” said Romney.
Other details of the Governor’s budget will be made available when it is filed with the Legislature on January 26.
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