Looking to close the books on fiscal 2024, Gov. Maura Healey filed a $714 million supplemental budget bill on Sept. 11 that includes several provisions of note to municipalities.
The bill’s spending would cover deficiencies in the fiscal 2024 state budget law, with a net cost to the state of $149 million, according to the administration. The majority of the spending, $565 million, would be for MassHealth, which is a “net-zero” cost due to federal reimbursements. Most of the remaining $149 million would address fiscal 2024 account deficiencies, with $33.9 million in new spending.
The governor’s bill includes $11 million to seed a Disaster Relief and Resiliency Fund, which was created in the fiscal 2025 state budget. The fund would allow for a rapid state response to extreme weather events in municipalities, and is set to be funded at the end of fiscal 2025, should there be a consolidated net surplus of $14 million. According to the governor’s filing letter, this proposal would allow the funds to be available immediately, with the intention of still using the fiscal 2025 surplus to add to the fund.
To address municipal tax abatement reimbursements for veterans, widows, blind persons and the elderly, the bill includes $11.1 million to fully fund fiscal 2025 payments to municipalities. If the funding is approved, the Division of Local Services would issue accounting guidance.
The governor’s bill includes several outside sections to address policy changes and/or technical fixes.
The bill proposes a new effective date for changes to the tax title foreclosure process that were included in the fiscal 2025 state budget law. The effective date would be pushed from Nov. 1 of this year to July 1, 2025, to coincide with the beginning of the next fiscal year.
• Require municipalities that choose to sell a foreclosed property to enlist a real estate agent for at least one year before being allowed to sell the property at public auction, and require auction bids to be at least two-thirds of the appraised value in order to be accepted.
ReplyDeleteThe new law still goes back 2 years from July 1, 2025. Any property sold by town now has its equity captured, so why do it?
See how the MMA feels:
Since the Tyler decision, the MMA has been working closely with the Legislature to find a legislative solution that would put Massachusetts in compliance with the federal ruling, while also not overburdening municipalities with cumbersome and unnecessary regulations,” the MMA wrote. “Unfortunately … outside sections [to the budget] were adopted that go well beyond adhering to the Tyler decision, and would negatively impact cities and towns.
“Despite having followed existing law at that time, cities and towns would be financially liable for excess equity claims. … Increased financial exposure to excess equity claims would come at the expense of property taxpayers in good standing. With tight municipal budgets in virtually every municipality, this type of financial exposure would likely translate into reductions in programs and services, reductions in staff, and/or increases in property taxes
Just avthought
The "Cities and Towns" attempted to gather where they did not sow.
DeleteThis is similar to when the Town had to make changes when 2 1/2 came into being. Communities are used to doing business on way, when big changes are made by big government. This has happened before. I would have to look back at the date.
Delete"Tight municipal budgets" are solely due to wasteful, reckless spending.
DeleteYou are right ! Follow the budget approved by Town Meeting ! How hard is that ?
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