North Andover, MA – Senator Steven Baddour (D-Methuen), Senator Bruce Tarr (R-Gloucester), State Representative David Torrisi (D-North Andover), and State Representative Barbara L’Italien (D-Andover) announced today that the Senate and House of Representatives have agreed to increase state aid to cities and towns by $223 million in the FY09 budget. This is a 4.43 percent hike over last year’s local aid, boosting Chapter 70 funding for local schools, lottery aid, and local assistance.
“This resolution is a demonstration of the Legislature’s commitment to North Andover’s schools and to our community, despite facing a difficult budget season,” Representative Torrisi said.
Passage of a local aid resolution nearly four months before the start of the fiscal year will help cities and towns craft local budgets with greater confidence and accuracy. “Cities and towns need increased state support, and they need to know they can count on it in developing their own budgets. This resolution will accomplish both objectives for North Andover,” said Tarr.
“During these tough economic times, it is important that we give our communities adequate notice as to how much they will receive for local aid,” said Representative L’Italien. “This resolution will enable North Andover to base their budget on solid amounts.”
“With cities and towns across the Commonwealth facing increasing financial burdens, I was very happy to support this increase in local aid,” said Senator Baddour. “I know that the people of North Andover will put this money to use maintaining vital services such as the schools, public safety and council on aging.”
The resolution guarantees cities and towns will receive $935 million in unrestricted local aid, $811 million of which is generated by the Massachusetts Lottery and $124 million of which is allocated from the Commonwealth’s General Fund. Since the Lottery was “uncapped” by the Legislature in Fiscal Year 2007, all revenue other than prize money and a small amount for administration goes to municipalities.
In FY09, however, only $811 million is projected to be generated—$124 million less than was allocated last year. The Legislature’s budget will ensure the additional $124 million is distributed and that cities and towns are held harmless to last year’s allotment.
The local aid resolution also maintains a commitment made by the Legislature three years ago by increasing Chapter 70 allocations by $223 million to $3.95 billion. The increase comes as part of a five year plan to move individual school districts toward their target-aid contribution level. Under the Legislature’s plan, each school district would see an increase in Chapter 70 funding over last year.
