In every of his eight years as governor, Charlie Baker saved a marketing campaign promise to suggest growing unrestricted native support to cities and cities by the projected charge of progress in state tax revenues.
Now, with a considerably muted forecast for tax collections forward of Gov. Maura Healey’s first funds proposal, leaders from cities and cities advised the brand new administration the same enhance in municipal assist “won’t cut it.”
The outlook for unrestricted common authorities support, or UGGA, was one of many prime points municipal officers flagged Tuesday on the first Local Government Advisory Commission assembly throughout Healey’s tenure, alongside a bounce in particular schooling prices and school-related burdens.
With Healey’s fiscal 12 months 2024 state funds due by March 1, a string of metropolis and city officers briefed Lt. Gov. Kim Driscoll and Administration and Finance Secretary Matt Gorzkowicz on monetary strain factors they face and their hope that the brand new crew will make extra state {dollars} accessible.
Revere Mayor Brian Arrigo urged the administration to decouple unrestricted native support from the projected 1.6% progress charge of state tax revenues that prime lawmakers and the Healey administration count on within the subsequent fiscal 12 months.
“Unrestricted general government aid — UGGA, as we all know it and love it — has historically been tied to the projected increase in tax collections, and the predictability of that is really helpful for us in budgeting,” Arrigo stated. “But secretary, you mentioned a 1.6% increase in the consensus revenue forecast. We all know that won’t cut it for us on a local level.”
Last 12 months, Baker proposed growing unrestricted native authorities support on the identical 2.7% charge because the forecasted progress in state tax income, however he and lawmakers ultimately agreed to a Senate push to double the UGGA enhance to five.4%.
Arrigo recounted that historical past Tuesday, saying the unique 2.7% enhance “wasn’t adequate for the rising costs that we were seeing.”
“Hopefully, that tactic can continue,” he stated of decoupling native support progress from state tax income progress.
Decoupling from state income projections might result in bigger quantities of support, or decrease ones relying on the fiscal state of affairs throughout the annual state funds cycle.
Another problem the Revere mayor flagged is a pointy enhance in native particular schooling prices.
Source: www.bostonherald.com”