From Governor Patrick- 2011 Governor's budget local aid

Dear Local Official,

As we finalize our Fiscal Year 2011 budget proposal, I am pleased to inform you of my intention to propose funding local aid at more than $5.2 billion next fiscal year.
Despite the fiscal challenges the Commonwealth continues to face, I will propose taking another step forward in our commitment to education by funding Chapter 70 at the highest level in the history of the Commonwealth at $4.048 billion. Every district will be fully funded at foundation, all districts will be held harmless to ensure funding is not less than fiscal year 2010 levels, and all Chapter 70 amounts will be funded by the State, not with deferral stimulus funds.
On the non-school, municipal side, I will propose funding unrestricted general government aid at fiscal year 2010 level of $936 million. I will also propose level funding other key local aid accounts, including payment-in-lieu-of-taxes and regional school transportation.
Chapter 70 and Unrestricted General Government Aid numbers for each community is available at: http://www.mass.gov/Ador/docs/dls/mdmstuf/StateAid/MMA_Sec_3.xls
As is customary, our proposal for all Cherry Sheet accounts will be available when our budget proposal is filed on January 27th.
Through our Fiscal Year 2011 budget, additional filings and submissions to the Joint Committee on Municipalities and Regional Government, our Administration is also proposing a number of new tools to support local governments, including:

o A local pension funding relief initiative to help local systems address unprecedented asset losses in a fiscally responsible way. Communities could save up to $200 million statewide in the first year of the proposed new schedule.

o An optional Early Retirement Incentive program for cities and towns.

o A rate freeze on special education private placements that could save $3.2M .

o Relief from library “maintenance of effort” requirements and decertification rules

o Allowing regional school districts to share superintendents, providing savings and efficiencies.

o Allowing regional school districts greater access to stabilization funds.

o Allowing local government procurement from state energy resource contracts.

o $250K in a reserve account to study the adequacy of the Chapter 70 foundation budget and formula.

o A local aid study commission to evaluate local aid formulas.

We look forward to working with you during the budget process.

Sincerely,

Deval L. Patrick
Governor

The linked spreadsheet shows that the Governor is proposing ...

... to fund the Chapter 70 school aid and unrestricted state aid for Dartmouth at the FY2010 level, about $9.49 million in school aid and $2.22 million in local aid. Not good news.
This is only the beginning of the budget process. The Governor's budget will go to the House. The Ways and Means Committee will modify it, the House passes it, and that budget will go to the Senate. The Senate Budget Committee modifies the House budget and the Senate passes that. The final bills from the Senate and House are reconciled by conference and the two houses pass a final budget which the Governor has line item veto power to modify. Vetoed items can be overridden by the legislature and then the budget is final. Except ... the governor can then reduce some budgets under his 9C authority which has been necessary the past couple years.