May 27, 2016

The Senate last night approved a $39.5 billion state budget bill for fiscal 2017 that includes some key increases in local accounts.
 
The House and Senate state budget bills now go to a conference committee to work out some significant differences, with a goal of getting a final legislative budget to the governor before the fiscal year begins on July 1.
 
Both budget bills would bring a revenue-sharing approach to municipal aid that was sought by the MMA, increasing the Cherry Sheet Unrestricted General Government Aid account by 4.3 percent, the same rate that state taxes are projected to grow next year. UGGA would grow by $42.1 million next year to $1.02 billion, the same number recommended by the governor in January.
 
The stability in the UGGA number throughout the budget process has helped cities and towns minimize revenue uncertainty and finalize local spending plans on time. Funding for UGGA next year would reach its highest level since the reductions imposed during the Great Recession of 2007-2009.
 
The House and Senate head into conference committee with some differences in calculations of Chapter 70 local contribution and school aid amounts. In both branches, the Chapter 70 appropriation would cover the basics of the law by ensuring that all districts are able to reach the current “foundation” level of spending and providing minimum new aid of $55 per student. (Most districts are minimum aid districts.)


posted by Jeff Bennett