Sunday, July 9, 2017




The Honorable Jay R. Kaufman, House Chair
The Honorable Michael D. Brady, Senate Chair
Joint Committee on Revenue
State House, Boston

Dear Chairman Kaufman, Chairman Brady, and Distinguished Committee Members,

On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association appreciates the opportunity to offer testimony in support of H. 1603, filed by Rep. Smitty Pignatelli and others that would authorize cities and towns to adopt a local motor fuels (gasoline and diesel fuel) excise of up to 5 cents per gallon that would be dedicated to local transportation and storm water purposes. Adoption would be by the local legislative body. This is a priority bill for the MMA.

With the property tax and other local revenues strictly limited by state law, municipal officials are seeking alternative ways to help pay for local road and bridge projects and public transit services, and begin to cover the cost of storm water management.

A 2016 analysis by the MMA found that cities and town need to spend more than $630 million annually to maintain local roads and bridges in a state of good repair. With Chapter 90 local road funding currently at $200 million, a local option motor fuels excise would help close the state of good repair funding gap. Well-maintained roads and bridges support local economies and economic development plans, and help protect the safety of motorists, cyclists and pedestrians.



Due to ongoing litigation, the U.S. Environmental Protection Agency has postponed the effective date of the MS4 storm water permit by one year.

The EPA agreed to a request that was filed jointly by the Massachusetts Coalition for Water Resources Stewardship, the town of Franklin and the city of Lowell asking EPA Region 1 to delay the permit for one year pending judicial review.

In its notice, the EPA wrote that it would like to explore the use of alternative dispute resolution to engage with petitioners, and that the postponement will give the EPA time to determine if any changes to the permit for small Municipal Separate Storm Sewer Systems are appropriate.

The MS4 permit, which will regulate storm water in more than 250 municipalities in Massachusetts, was scheduled to take effect on July 1, 2017, with the first action item for municipalities to comply due in September. The stay delays permit implementation until July 1, 2018, and postpones the due date for communities to file their Notice of Intent as well.


After more than a month of negotiations, the Legislature’s budget conference committee filed a $40.2 billion fiscal 2018 state budget plan this morning that was quickly enacted by the House and Senate hours later.
 
The budget is based on a $700 million reduction in expected tax revenues for next year. Weak tax collections in the just-ended fiscal year created a $440 million hole in the fiscal 2017 budget and forced lawmakers to make a downward adjustment in their fiscal 2018 forecast.
 
While the Legislature’s budget makes widespread reductions in many state budget accounts, it makes key investments in local aid, including full funding of the $39.9 million increase in unrestricted municipal aid, a $119 million increase in Chapter 70 education aid, and a $4 million increase in special education reimbursements. The remaining local accounts are generally level-funded.
 
“Representatives and senators are clearly protecting and prioritizing municipal and school aid,” said MMA Executive Director Geoff Beckwith. “In the context of a very tight budget year, this is a strong budget for cities and towns, and we deeply appreciate the support that legislators are giving to local aid and our communities.”
 
Gov. Charlie Baker now has 10 days to sign, veto or recommend changes to the appropriations and outside sections.

Unrestricted General Government Aid
The Legislature’s budget provides $1.061 billion for UGGA, a $39.9 million increase over current funding – the same increase proposed by Gov. Baker and approved by the House and Senate in the spring. Almost all of UGGA funding comes from $985 million in expected Lottery proceeds and $65 million from the Plainridge gaming facility. (can you say counting chickens before eggs hatch)
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posted by Jeff Bennett
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