When town government, as in selectmen, need or want money for a project, they usually ask town meeting for an appropriation. When that appropriation falls short, as in, is not enough for any number of reasons, what can be done?

One answer comes from the MA department of revenue / division of local services.

This month's Ask DLS features frequently asked questions concerning appropriation transfers. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We would like to hear from you.

How does a municipality determine the amount available for a transfer?

The amount of any appropriation available to be used as a financing source for another appropriation is the unspent and unencumbered balance, i.e., the amount after all potential liabilities to be charged to the appropriation are considered. Accounting officers should determine this amount before any transfer from an appropriation is approved.

Are there special rules if the transfer is being made from surplus bond proceeds or a restricted fund?

Yes. Transfers from surplus bond proceeds after a project that was financed by borrowing has been completed or abandoned may only be made in the manner and for the purposes set forth in G.L. c. 44, § 20. Transfers from appropriations financed by other restricted sources, e.g., stabilization, enterprise, water surplus or community preservation funds, are subject to the same statutory restrictions as the original appropriations.

What is the appropriation transfer process for towns?

At any time during the fiscal year, a town meeting may by majority vote transfer any amount from any appropriation to any other municipal use authorized by law. During May and June, and the first 15 days of July of the new fiscal year, the selectboard, with the agreement of the finance committee, may transfer any amount from a departmental or other appropriation to any other appropriation. This procedure may not be used, however, to transfer funds from a municipal light or school department budget. An end-of-year transfer using this alternative procedure requires a majority vote of the selectboard and a majority vote of the finance committee. Any end-of-year transfer from the municipal light or school department budget requires town meeting approval.

Of course, there is always that big pile of money to light up the eyes of government employees - ARPA, but what about the people who worked hard, to provide the funds to operate the government, what do they get? Plenty of money sitting on books un-used to increase any appropriation that has come up short to get the original project completed and in a timely manner.